12/12/23 – Reverse Mortgages and Condo list updated

12/12/23 – Reverse Mortgages and Condo list updated

President | Loan Officer
Mike Meena
Published on December 12, 2023

12/12/23 – Reverse Mortgages and Condo list updated

We are getting a slew of requests for Reverse Mortgages recently and are closing quite a few of them now. I was speaking with a lady last week, whose Hubby passed away in September. She has been living in their house and has a small mortgage, but she has gone through quite a bit of savings and is now considering selling and downsizing. She does not qualify for much of a loan and would prefer to have no payment at all, but also wants to travel and stay local to be near her kids. here is what we came up with:

She owes $280K on her house worth $1,200,000.00, and she wants to buy a property for around $800,000.00, which she could do with cash, but she wants to pay off her car and some credit card bills, and she also wants $100K to travel over the next few years. We decided to get her a $200,000.00 Reverse Mortgage on her new home. She could go up to $350,000 Loan Amount based on her age, but $200,000 is enough for now.


One of her big concerns about a Reverse Mortgage was leaving the house to her children and grandchildren, and I explained that they will still inherit the property. She was also concerned that the equity would all be gone by the time she passes, and I explained that if prices rise by just 4% per year, her home will be worth $1,200,000.00 in 10 years, and she will only owe $400,000.00 at that time assuming that she never refinances to a lower interest rate.


Yes, you can refinance a Reverse Mortgage too!


The important part is that she will be able to do some things she hasn’t been able to do, she will not stress out over money, and she will still be leaving money to her heirs. That sounds like an excellent way to go!


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

  1. American Beauty Village – West has insurance issues – East will get renewed February 28, 2024, and will likely be deemed non-warrantable at that time.
  2. Scenic Hills – Insurance
  3. Mariposa – Litigation semi-cleared! Insurance a mess!
  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 –
  10. Shadow Ridge – Oak Park – Insurance
  11. Cabrini Villas – Burbank – Insurance
  12. Sierra Glen Condos – Insurance
  13. American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough!  Thank you Kathy for getting me the insurance! This will help everyone!

Las Ventanas – Litigation cleared – NO LONGER ON THE NAUGHTY LIST!!! REPAIRS HAVE BEEN MADE!!!  


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


The CPI number we have all been waiting on came out today, which was in line with what was expected. Rates have bounced around a bit today, but nothing too wild. We have come a long way in the past 40 days, and more work is in front of us. We will not go down in a straight line, but rates will go down, and prices will go up! 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 high 5’s and low 6’s
  • Conventional Loans up to $765,550.00 are in the mid 6’s and low 7’s
  • High Balance Loans $765,550.00-$ 1,148,325.00 are in the high 6’s to low 7’s
  • Jumbo loans above $1,148,325 are in 6’s and 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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