12/27/23 – Guideline Changes Part 2 of 3

Christmas came and went, and although it was fun, it was a whirlwind. My second year of buying gifts for the family and I did great! To start the week, I ran down to Aldik to pick up many holiday sale items so my house would look more like Christmas in the future. It is a fantastic store, and at 60% off, it is almost reasonable! Did I mention I spent 90 minutes in line? That may be the reason this is a day late!

A few more hit list items that are changing in Underwriting which will help our clients qualify in 2024.

We can now gross up Social Security income that is not on taxes by 15%. Previously, we could only gross up the income if it showed as non-taxable on the tax returns. Now, we can increase that income by 15% if it is not shown on the taxes and 25% if it is non-taxable on the taxes! YAY!

Employment contracts: When a buyer gets a new job and is scheduled to start, the employment CANNOT be from a family member or interested 3rd party. Lenders scrutinize employment contracts as buyers often get large raises when that new job hits. That makes it look a little fishy!

We have a couple of other changes that I will share tomorrow!

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 slightly better today, but trading volume is light due to the holidays. We will not see much movement in rates this week, but the little movement we see is positive.

• 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!