12/28/2023 – Guideline Changes Part 3 of 3

We are getting close to a new year, and about to put 2023 as a distant memory in the back of my head. This year has been the toughest of my 33 years in the business, and I am confident that next year will be much better!

As I mentioned last week, Fannie and Freddie made some significant changes in underwriting this year, and here are the last of the significant changes.

Self-employed taxes: When using one year of tax returns rather than the standard two years, Fannie now requires that all businesses you own 25% or more of be owned for at least five years!

Restricted stock: To use restricted stock income, the stock must be vested and distributed to the borrower with no restrictions. We would need proof that the stock is publicly traded, a vesting schedule for past and future vesting, and a verification of employment showing recent distributions.

Manufactured housing: The old rule requires you to have the HUD data plate, the Hud Certification label provided in the appraisal report, and photos. The new rule is we will only need one of the two items above. YAY!

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 off a bit today, but we have had light trading all week!

• 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 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!