29 Days Until Taxes Are Due: What LA County Residents Should Know Before Filing Because of the fires, all Los Angeles County residents were granted an extension to file their 2024 taxes until October 15, 2025. That means we’re now just 29 days away from the deadline! For many homeowners and primarily self-employed buyers, this filing season isn’t just about compliance; it's about preparing strategically for financing and future purchases. What to Watch for When Filing Taxes Taxes Must Be Paid – If the buyer goes on a payment plan with the IRS, they must make one payment under that plan, and that payment will be applied against the debt-to-income ratios. Show Enough Income – Please talk to me first, and we will determine how much a buyer needs to show on their taxes. One or two years? – A Buyer may only need one year of taxes to buy the property they want! Let us review what they have and see if we can get them qualified with just one year of tax returns. Lenders don’t care about how creative your write-offs are. We care about usable income. If you’re aiming for conventional financing, you’ll need to show enough taxable income to qualify for the loan amount you want. Self-employed borrowers filing for 2024 now will establish their most recent income. When they file again in early 2026 for 2025, they’ll have the ability to average two years of stronger numbers, which can be a huge advantage if 2023 or 2024 weren’t their strongest years. Strategies for Self-Employed Buyers Conventional Loans (Best Rates): If you’re putting less than 20% down, make sure your taxes reflect strong income. Rates on bank statements or 1099 loans are significantly higher in this bracket. Bank Statement/1099 Loans: For buyers putting down 20% or more, these alternatives can be effective. Lenders will look at deposits rather than taxable income. This allows you to take more write-offs and still qualify, and you would only receive a slightly higher rate; however, you could save tens of thousands of dollars in taxes by taking this route. Timing Is Key: Filing now (for 2024) and again in early 2026 (for 2025) gives flexibility. A strong 2025 tax return can lift your two-year average just in time for spring/summer homebuying. Concerns to Keep in Mind Over-Write Offs Hurt: Too many deductions may save you in taxes but could make it impossible to qualify for the loan size you want. Unpaid Taxes = Red Flag: Lenders want to see taxes either paid or on a repayment plan. IRS debt can block loan approvals. Please note that we do not verify whether your taxes are filed on a Bank statement or a 1099 loan. Changing Loan Guidelines: As rates and guidelines shift, it's crucial to stay flexible and be prepared to pivot between conventional and alternative loan products. What to Do Before Year-End Talk to a CPA and your Augusta Financial Loan Officer Together: Align your tax strategy with your lending goals. Review Bank Statements: If you're leaning toward a bank statement loan, make sure deposits are consistent and well-documented. Forecast for 2026: If you anticipate a higher income in 2025, consider how that return will position you for next year's buying season. Bottom Line: With the October 15 deadline just weeks away, how you file your 2024 taxes could determine not only how much you owe, but whether you're positioned to buy the home you want in 2026. Have your clients call me to review their plans so we can walk through the numbers and ensure they are showing the necessary income to buy a house ASAP. Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away. 📞 Direct Line: 661-291-2222 – Text OK 📞 Cell: 661-714-6258 – Text OK 📞 Office: 661-260-2970 ext. 2222 – Text OK 📧 Email: Mike@AugustaFinancial.com But wait, there’s more… Interest Rates Rates are looking good with many loans now in the 5’s! Stop spending, start firing people, and don’t hire anyone; we will lower these rates on our own.  Loan Programs We do loans on Non-warrantable condos! We offer 12-day escrows for pre-approved buyers, including conventional FHA/Jumbo/Bridge loans. We provide loans in all 50 states, so call me with anything you need. Government loans (FHA/VA/USDA) are in the 5’s. Conventional loans up to $806,500 are in the high 5’s and low 6s. High-balance loans from $806,501 to $1,209,750 are also in the 6’s. Jumbo loans above $1,209,750 are in the 6’s. ARMS in the 5’s and some in the 6’s Bank statement loans are available with 10% down again, with larger down payments in the 6’s++. Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement! 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000. Private Money lenders offer Hard Money Loans with 35% down. No-Ratio Loans require a 30% down payment. DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down. Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go! 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates! Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.  **Good News for Condos:**  Nothing New!  **Bad News for Condos***   Nothing new! CONDO HELP!!! If you have a listing or a buyer interested in a specific condo and are unsure whether it is warrantable or Non-warrantable, please call me, and we can look up Fannie’s list in real-time. I have already done that on three condos today, and my list was accurate on all 3. We don’t know when something has changed, and it would be impossible to track everything on a day-by-day basis, but we don’t mind looking up a few items each day.  The full state of California’s naughty list has been added to: MikeMeena.com! See the link below: https://mikemeena.com/non-warrantable-condos/ Let me know if you hear anything new about condos or townhouses. I am available every day if you need anything. 📞 Direct Line: 661-291-2222 – Text OK 📞 Cell: 661-714-6258 – Text OK 📞 Office: 661-260-2970 ext. 2222 – Text OK 📧 Email: Mike@AugustaFinancial.com Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
