12/5/2023

I hope you are having a great week so far. By the way, it is not Christmas yet, so get to work!

I got a couple of fallouts that fell in my lap between last week and today, and I wanted to explain the fixes and how simple they were.

One buyer had too high of a debt-to-income ratio when they finally calculated the Mello Roose at Underwriting. I gave the buyer a few options, and he chose my favorite. He has a $900 car payment and owes 24,000.00 on the car, and that will help keep the debt-to-income ratios in line with a 3.5% down payment for an FHA loan. The buyer makes good money, but his spousal and child support skew that. Therefore, paying the car off was a simple solution, but he needed more money. In comes Mom’s equity in her house to save the day! We lent Mom $24,000.00, and she paid off the car for the son. After we close, he may refinance the car and repay Mom the $24,000.00, and she may pay us, or they can continue to make payments on the mini Bridge Loan we are about to get them.

The next deal just came across my desk, and there was an occupancy issue as Mom needed a job transfer from Northern California to LA. Son is buying with Mom, but the transfer did not come through, so now we have two options. The first option is to see if the son can buy without using Mom’s income and have Mom go on title and still be the owner occupant. The next option is to have them buy the property as an investment. Either way, this went from the other lender falling out to another save the day.

These deals hit me quite often, and I can’t always save the day! The problem is you have a client walking away with a bad taste in their mouth and a lack of trust for everything, including you, the agent. Taking a client who is in love and pictured themselves in a property for $900K, and then you have to start showing them $800K places? They will want to change agents because that loan mishap is now your fault! Don’t let that happen. Get a real professional loan officer you can trust! I have a name if you need one! LOL!

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 – NEW as of last week
10. Shadow Ridge – Oak Park – Insurance
11. Cabrini Villas – Burbank – Insurance
12. Sierra Glen Condos – Insurance
13. Las Ventanas – Litigation – getting close to being cleared up? We are waiting for a letter from the attorney/ HOA!

Cornerstone at Copper Hill has a special assessment of $3400 on January 1, 2024. We can finance the complex with standard financing, but if you don’t pay the assessment amount upfront, you will pay $675.33 for HOA in 2024. Assuming there are no increases, you will pay $392.00 in 2025.

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

Interest rates are better today! YAY! Let's get these babies lower!!!

• 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!