12/19/23 – Moving Money

I hope you are having a great Christmas week and are still working, as the credit card bills are due right after the new year! LOL!

I had an opening yesterday where the clients had some decent credit card bills, and we reworked the loan to make better financial sense. This buyer spoke to three other lenders and decided to go with us after we reviewed the plan.

The buyer is buying a house for $888,000.00, and wanted to put 20% down. They have $24,000.00 ($600 monthly payments) in credit cards, and if they put down 20% and left everything in tack, they would have to buy the rate down to 6.00% to qualify. If they pay off the 24K in credit cards and put down less than 20%, their overall payment will go down, and they will not have to buy down the interest rate, which is important as we both feel they can refinance next year.

Here is how the numbers work:

888K PP – 20% down 6.00% rate (1.5 Points) – Principal and Interest = $4259.21 + Credit cards $600.00 = 4859.21 (200K ish out of pocket)

888K PP – $152,000 down 6.500% rate (0 Points) – Principal and Interest = $4652.02 + PMI $87.00 = $4739.02 – (187K ish out of pocket)

888K PP – $165,000 down 6.500% rate (0 Points) – Principal and Interest = $4569.85 + PMI $84.35 = $4654.20 – (200K ish out of pocket)

The property will have to appraise at 900K to remove the PMI next year when they refinance. Paying off the credit cards and putting the same amount down saves 10K in points, and the cards are gone, and so is the 22% interest rate that goes with them.

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 – I heard an FHA loan closed in there! I am trying to find out if it is an underwriter error, or will it be okay to do FHA loans there?
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. American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough!

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.

Interest rates are flat today, but we are hanging in there as we await more economic news. The market may be this way for the next few weeks as we wait for more significant numbers at the first of the year! Let’s hope we continue to trickle down in the meantime.

• 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 low to mid 6’s
• High Balance Loans $765,550.00-$ 1,148,325.00 are in the mid to high 6’s
• Jumbo loans above $1,148,325 are in 6’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 7.500% 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!