11/30/23 -Mariposa Update and Loan Limits

I am back in the office today, and I missed it! Here is a fun one for today, especially for those of you who show properties in the Santa Clarita Valley or other “severe fire areas.” The Mariposa condo situation is all cleared up, and the litigation is no longer a concern, BUT the insurance has increased, and there was a $1 million assessment in July! The fun part is that the insurance went from $109,000.00 annually for full coverage to $1,650,000.00 annually for insufficient coverage. Therefore, Mariposa is once again deemed Non-warrantable, and you will need a 10% down payment to purchase in that complex; YAY!

Insurance is becoming a huge factor. Let’s do some math for people who are looking to buy in Mariposa and see what the cost of the new insurance is vs. what it used to cost.

$109,000 / 535 = $203.74 per unit annually, and now it is

$1,650,000 / 535 = $3084.11, a $2880.37 difference per unit divided by 12 months = $240.03. So, expect the HOA fees to increase by $240.00 or more in that complex, too.

If you are showing properties in “severe fire areas,” you need to be aware that there will be reassessments in most of these condo complexes in the next 12 months. We are starting to see this happen, but HOA’s move slowly, and letting your clients know there is a potential for a reassessment due to insurance costs could save your relationship if they buy now and get reassessed in a few months.

As I mentioned the other day, the new loan limits are in, and we are locking in rates with these limits. If someone is in escrow with these loan amounts, then the lender should be able to change the pricing to the conforming loan limit, too! Remember that FHA will only accept these limits in January, and we never know what they will do with their PMI as their high balance loans have a higher PMI rate, but they may not move the bar this year, so having a loan above $726,200 -$765,500 could have a higher PMI rate?

Here are the loan limits for some local counties below:

Kern / San Bernadino / Riverside / Fresno –           $766,550 – 1 unit  / $981,500  –   2 Unit / $1,186,350 - 3 Unit / $1,474,400 - 4 Unit

Santa Barbara –                                                                 $838,350 – 1 unit / $1,073,250 –   2 Unit / $1,297,300 - 3 Unit / $1,612,250 - 4 Unit

San Luis Obispo County –                                               $929,900 – 1 unit / $1,189,550 –   2 Unit / $1,297,300 - 3 Unit / $1,612,250 - 4 Unit

Ventura –                                                                             $954,500 – 1 unit / $1,221,950 –  2 Unit / $1,477,050 - 3 Unit / $1,835,600 - 4 Unit

San Diego –                                                                         $1,006,250 – 1 unit / $1,288,200 -2 Unit / $1,557,150 - 3 Unit / $1,935,150 - 4 Unit

Los Angeles / Orange –                                                   $1,149,825 – 1 unit / $1,472,250 -2 Unit / $1,779,525 - 3 Unit / $2,211,600 - 4 Unit

I know what you are thinking, let's move to Santa Barbara, its cheap!

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 semi-cleared! Insurance a mess!
4. Bouquet Canyon Village – West has insurance issues – East will get renewed February 28, 2024, and will likely be deemed non-warrantable at that time.
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.

A little pull back day, but we have had a nice run. Time to let the house win a few hands before we go on a big run and get rates lower again! Positive thinking!!!!

• 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 $765,550.00 are in the high 6’s and low 7’s
• High Balance Loans $765,550.00-$ 1,148,325.00 are in the low to mid 7’s
• Jumbo loans above $1,148,325 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 weekend 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!