11/28/2023 – California Fair Plan taking their time!  FHFA increases loan limits

11/28/2023 – California Fair Plan taking their time! FHFA increases loan limits

President | Loan Officer
Mike Meena
Published on November 28, 2023

11/28/2023 – California Fair Plan taking their time! FHFA increases loan limits

I hope you had a wonderful Thanksgiving weekend. I flew to NYC to see my daughter, who moved to Buffalo, and we had a wonderful time. On the way back, I was honored to sit beside a gentleman who coughed on me for 5.5 hours. I am working from home for the next couple of days as I caught whatever he was coughing up. LOL!


The FHFA announced the new loan limits in January, which became effective immediately for conventional and FHA loans. However, VA loans have no loan limits- YAY!


The conforming loan limit will be $766,550 and $1,149,825 for high-balance loans. That means a first-time buyer can purchase for $ 790,600 with a 3% down payment, and with a 5% down payment, they can purchase a property up to $1,210,345.00. I will send you more details on this later in the week.


We have had a few closings delayed lately due to waiting on California Fair Plan Insurance. California Fair Plan seems to take about 21 days to get us insurance, whereas it was only seven days until recently. We usually wait for complete insurance coverage before sending loan documents, but sometimes, you must put the cart in front of the horse and get docs out with a redraw for the proper insurance amount to follow!


I predicted this would happen a few months ago, and it could worsen. Remember that the California Fair Plan is a government agency, and it is not uncommon for them to move at a snail’s pace on this stuff! We are still in the beginning stages of this insurance nightmare!


Condo / Townhome issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

  1. American Beauty Village – Insurance
  2. Scenic Hills – Insurance
  3. Mariposa – Litigation – Agreed upon, but not yet recorded
  4. Bouquet Canyon Village – Insurance
  5. Madison – Litigation
  6. West Creek / West Hills – Insurance
  7. Cornerstone – Insurance
  8. Canyon Oaks – Insurance
  9. Brookside Walk – Insurance – NEW as of last week
  10. Shadow Ridge – Oak Park – Insurance
  11. Cabrini Villas – Burbank – Insurance
  12. Sierra Glen Condos – Insurance
  13. Las Ventanas – Litigation

Cornerstone at Copper Hill has a special assessment of $3400 on January 1, 2024. We can finance the complex with standard financing, but if you don’t pay the assessment amount upfront, you will pay $675.33 for HOA in 2024. Assuming there are no increases, you will pay $392.00 in 2025.


Please let me know if you hear anything new on condos or townhouses.


Interest rates are slightly better today and at their best level since mid-September. We will likely see some significant developments in rates next week when non-farm payrolls are announced and in two weeks when the new CPI number is released.

  • 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
  • We do loans in all states, so call me with anything you need.  
  • Government Loans (FHA / VA) are in the low to mid 6’s
  • Conventional Loans up to $726,200.00 are in the high 6’s and low 7’s
  • High Balance Loans $726,201.00-$ 1,089,300.00 are in the low to mid 7’s
  • Jumbo loans above $1,089,300 are in the 7’s
  • Bank statement loans - They are available with 10% down again! 8’s and 9’s depending on down and credit score.
  • No income qualifier – 40% down with reserves! In the 8’s!
  • 0 down loans are in the high 7’s – 660 credit score min right now, up to $740,000.00.
  • Private Money lenders - hard Money Loans – 35% down!
  • No Ratio Loans 30% down
  • Debt Service Coverage loans with as little as 25% down
  • Bridge Loans - typically 8.250% with limited fees – and they get you where you need to go!
  • 0 down California Dream for all Equity Share – Postponed until February 2024???
  • 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!

Interest rates are subject to change without notice! Above are LA County Loan Limits.


I am available all week if you have any questions or if someone is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 2222. Please text (661-714-6258) or email me at Mike@AugustaFinancial.com.


Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!

President | Loan Officer
Mike Meena President | Loan Officer
Click to Call or Text:
(661) 714-6258

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