11/8/2023 – Condo Stuff

11/8/2023 – Condo Stuff

President | Loan Officer
Mike Meena
Published on November 8, 2023

11/8/2023 – Condo Stuff

Many of the issues we are having regarding financing are on condo and Townhouse projects. I have been posting which projects are having issues in my updates, and I may start harassing you when you get a listing so we can see where we are on the insurance. Now, I need to go a little deeper and make sure you understand what other issues we could have when trying to finance a condo!

We will start with the obvious and work our way down the list:

Litigation: Most litigation can be an issue, but slip and falls and other lawsuits that have been turned over to the insurance companies can sometimes be

Insurance requirements: Way too many requirements to show, but if you have a listing in a condo, then get us the insurance and we will look.

Investment properties: If there are more than 50% investment properties in a complex, you will have an issue getting condo approval on an investment property loan! If the buyer is owner-occupied or buying as a second home, then the percentage of occupancy does not matter!

Delinquent HOA Dues: no more than 15% of the units in a condo project can be delinquent by 60 days.

Reserve Level: At least 10% of the dues go towards reserves every month.

Ownership Interest: No more than 10% of the project can be owned by one owner.

Developer Control: If the developer maintains control over the project, then a full condo review will be required.

Special Assessments: Special assessments are fees levied by the HOA to cover the costs of significant repairs, improvements, or other expenses that exceed the reserves’ capacity. Special assessments can impact the project eligibility and review type, as they may indicate financial instability or the need for costly repairs that could affect property values. A full project review may be necessary to assess the scope of the special assessments and their potential impact on the project’s financial health.


You can see where I mentioned full condo review, but in many cases, we can do a limited condo review where we do not have to go through the steps above. The buyer would be required to put at least 10% down and prove that litigation and insurance are in good standing.


Condo / Townhome issues we know of now:

  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


Please let me know if you hear something new on Condos or Townhouses. We will see premiums increasing, likely increasing the HOA Fees soon!


Interest rates were better on Tuesday after getting hit pretty hard on Monday.  They are slightly better again today and we are now at the best levels since 9/25.  I know like 45 days!  LOL!

  • 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 mid to high 6’s
  • Conventional Loans up to $726,200.00 are in the 7’s
  • High Balance Loans $726,201.00-$ 1,089,300.00 are in the 8’s
  • Jumbo loans above $1,089,300 are in the 7’s and 8’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 7’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 - are typically 8.49% with limited fees – But they get you where you need to go!
  • 0 down California Dream for all Equity Share – Postponed until October???
  • 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 around 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 me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow!

President | Loan Officer
Mike Meena President | Loan Officer
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(661) 714-6258

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