4/4/2024 – What’s A Trust Loan? What is a Trust Loan, and why would a buyer want to take one out? Assume you have a client whose parents passed away and left the property to the kids in their Trust. The home is worth $1,000,000.00, and one sibling wants to keep it and live in it, and the others want their money. If they do a straight refinance, the County can reassess the property as it was given to all 2-4-6-8 siblings, and the low tax basis will go away forever! A trust loan is a 3rd-party loan, allowing the beneficiary buying the property to apply for Proposition 58 in California and prevent a property tax reassessment. I love bureaucratic steps that cost the citizens more money to get what is rightfully theirs in the first place, but that is the world we live in! A trust loan is simple and easy! Assuming three equal siblings and the house is paid off, we would have the following scenario: We need to decide on a loan amount for the Trust and the future refinance loan. 66.7% of the agreed-upon value. We will then need an appraisal on the property. We will get a buyer pre-approved for the Trust and the takeout refinance mortgage We will then distribute the funds to the beneficiaries through the Trust Loan. We will file the change of ownership exclusion form, which protects your property tax basis. You can then repay the private loan with a regular refinance mortgage. Imagine sitting with three siblings on a listing appointment and letting them know that you have to do a Trust loan to maintain the property tax basis for the sibling who wants to keep Mom’s house. You’re welcome! LOL! Update on Condos 1st week of April – American Beauty Gardens: 19% delinquency on special assessments due. 19% are 60 days or more late! This is interesting because I put it on the list last week, but I had one bank say, “we will keep it and portfolio it for a while!” This means they will do 5% down, but I have 7 other big lenders that will say 100% NO WAY! I know we can do these, and I think all other lenders will have about a .125 batting average to get these closed. Please don’t take a chance, and get the buyers to us ASAP! It’s the same story with the Madisons! The Met at Warner Center, Woodland Hills - On Fannie’s list for lack of Insurance! They have new Insurance, and a good source tells me everything is good there again! I will check before Thursday to see if they are on or off Fannie’s list! The first of two signoffs is below: I am available all weekend 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 / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE: American Beauty Condos – The brown ones – Insurance – 50 Mil in coverage for 748 units is not nearly enough! 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! American Beauty Village West: Reserves Bouquet Canyon Village – Insurance – On Fannie’s list! Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cornerstone – Insurance -On Fannie’s list! Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list! Madison at Towne Center – Litigation – We can do with 5% down, but others can’t! Mariposa: Insurance On Fannie’s list! Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list! Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May! Rainbow Sierra Terrace – Underinsured and voting on Insurance in March! Scenic Hills – Insurance – On Fannie’s list! Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! Sierra Glen Condos – Insurance – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! Treana – Stevenson Ranch: On Fannie’s list! Valle Di Oro – On Fannie’s list! Vista Del Canon – Insurance is too low, UGH! Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list! Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA – On Fannie’s list! West Creek Condos and Townhomes: Insurance On Fannie’s List! Please let me know if you hear anything new on condos or townhouses. Last Wednesday, interest rates were at their best in two weeks, and today, they are at their worst in two weeks! Isn’t this a great world? LOL! Let’s hope for a quick turnaround. 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 mid 6’s High Balance Loans $766,550.01 – $ 1,149,825.00 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! 6’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 7.79% with limited fees – and they get you where you need to go! 0 down California Dream for all Equity Share – Registration April 3rd to April 29, 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! The above are LA County Loan Limits. I am still available all weekend 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
