4/30/24 – What is Working Now!

4/30/24 – What is Working Now!

President | Loan Officer
Mike Meena
Published on April 30, 2024

4/30/24 – What is Working Now!

I like to keep you informed of what is working and what is not working from my perspective, and today will be no different. But first, business has picked up nicely over the past two-plus weeks, and we are starting to see more buyers in the market. That’s the good news! The bad news is there is still limited inventory, and my team has multiple pre-approved buyers bidding quite a bit on the same property! So that means someone doesn’t get the house, which is different from when everyone got a trophy when we were young! LOL!

Getting offers accepted is key, and writing the strongest offer is very important. We set clients up to win, just like good agents do, and we tell them what they can and can’t release with confidence. Last night, I had a client doing a Bridge loan ask me for advice as the listing agent told them to release the loan, appraisal, and inspection on an offer. I told them that I had never seen the house and they needed to decide on the inspection, but I had no issues with them waving the appraisal and loan contingencies. I even said they could increase the deposit and release it to the sellers.

A lot of my business lately has Bridge loans attached, and if you are not using Bridge Loans as a tool to help your clients, then you are making a big mistake! Houses are selling so quickly that a client often doesn’t need the bridge loan when all is said and done, but it gets them from point A to point B!
One of my clients is offering on a property where the seller wants a 45 day escrow and a rentback after. The buyer doesn’t want to do a Bridge Loan, but they are willing to take their chance as they see how the market is moving, and they are confident they will sell quickly and possibly before the purchase closes. Great, so that is a great reason to do this!

Regular interest rates are in the 7’s, and our Bridge loan rate is still at 7.99%! Nobody has a rate that low except us! We charge 0-2 points depending on the situation, but most of the time, it is 1 point with my team if they get standard financing through us. Let’s put that in perspective: I have a client selling for $1.4 mil and buying for 1.9 mil, and they are getting a $425,000 Bridge loan that will cost them $4250 + closing fees of $3800. The closing costs to sell will be $95K +/- so paying the extra 8K to ensure they get the home of their dreams is not a lot of money!

Other lenders offering Bridge Loans charge 3-4 points, and their rates are mid-to-high 9s! So you have a choice: you can have your potential seller sit and wait for someone to take a contingent offer on a house they love and nobody else does, or they can get approved for a Bridge Loan! The Bridge Loan life will change your world, and if you want to go over how they work in detail, let me know.

I am available all week if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, text (661-714-6258) or email me at Mike@AugustaFinancial.com.

But wait, there’s more!

Condo Change?  
I was told by a good source that Cornerstone at Copperhill has good insurance again!
I was told by the same source that Scenic Hills is working on their Insurance issues!
I am leaving them both on the list for now, but please give me any information you have on these or any others!

Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

  1. American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough!
  2. American Beauty Gardens: 19% delinquency on special assessments due. 19% are 60 days or more late! We can do with 5% down, but others can’t!
  3. American Beauty Village West: Reserves
  4. Bouquet Canyon Village – Insurance – On Fannie’s list!
  5. Bridgewater, Emeryville - On Fannie’s list!
  6. Brookside Walk – Insurance –
  7. Cabrini Villas, Burbank - On Fannie’s list!
  8. Canyon Village – Reserves and 10% of the dues not going to reserves!
  9. Canyon Oaks – Insurance On Fannie’s list!
  10. Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list!
  11. Cornerstone – Insurance -On Fannie’s list!
  12. Creekside – ??? We don’t know
  13. Encino Oaks – 5460 White Oak Ave – On Fannie’s list!
  14. Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list!
  15. Madison at Towne Center  – Litigation – We can do with 5% down, but others can’t!
  16. Mariposa: Insurance On Fannie’s list!
  17. Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list!
  18. Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May!
  19. Rainbow Sierra Terrace – Underinsured and voting on Insurance in March!
  20. Scenic Hills – Insurance – On Fannie’s list!
  21. Shadow Ridge – Oak Park – Insurance -On Fannie’s list!
  22. Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list!
  23. Sierra Glen Condos – Insurance – On Fannie’s list!
  24. The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list!
  25. Treana – Stevenson Ranch:  On Fannie’s list!
  26. Valle Di Oro –  On Fannie’s list!
  27. Vista Del Canon – Insurance is too low, UGH!
  28. Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list!
  29. Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA –  On Fannie’s list!
  30. West Creek Condos and Townhomes: Insurance On Fannie’s List!

Please let me know if you hear anything new on condos or townhouses.
Interest rates are not good, but you should still find people to buy and sell! We are up a little, down a little, up a lot, and then down a little! That is how we do it lately! Dont sell rate, sell payment and let the professional Loan Officers sell the loan aspect!

  • 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/ USDA) are in the high 5’s and low 6’s
  • Conventional Loans up to $766,550.00 are in the high 6’s and low 7’s
  • High Balance Loans $766,550.01 – $ 1,149,825.00 are in 7’s
  • Jumbo loans above $1,149,625 are in 7’s
  • Bank statement loans - They are available with 10% down again! 7’s to 9’s depending on down and credit score.
  • Profit and Loss Statement loans- You don’t need bank statements, just a profit and loss statement!
  • 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 $793,000.00.
  • Private Money lenders - Hard Money Loans – 35% down!
  • No Ratio Loans 30% down
  • DSCR – Debt Service Coverage loans with as little as 15% down
  • Bridge Loans - typically 7.99% with limited fees – and they get you where you need to go!
  • 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! The above are LA County Loan Limits.
I am still available all week if you need anything. Let me know 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. My direct line is 661-291-2222. When you text, 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!

President | Loan Officer
Mike Meena President | Loan Officer
Click to Call or Text:
(661) 714-6258

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