5/22/24 – Appraisal Waivers A few things we hear pretty often as lenders are: Do you have a good appraiser that can bring in the appraisal Can you get an appraisal waiver on this property The house has no flooring and other health and safety issues. Can we take out a conventional loan? We will start at the top with the stretched appraisal! Yes, we have appraisers who do an excellent job stretching appraisals. Unfortunately, not all appraisers are that skilled; sometimes, those appraisals get cut. Last week, I had an appraisal that appraised at the purchase price with nothing to support the value except some fake time adjustments. The appraisal scored a 5 on Fannie Maes SSR (Submission Summary Report), which requires an appraisal review. The reviewer came back and cut the appraisal by $80K, and we are now moving on to close the loan. So, a poorly stretched appraisal turned into a value about 5% below the initial appraisal. An SSR score of 4 or 5 requires an appraisal review, and this is why it is sometimes better to get an appraisal at the right value with a little stretch at the start rather than a big stretch to hit the purchase price. By the way, the buyer waived his appraisal contingency and was putting 50% down, so it didn’t matter what the appraisal came in at! If you have a property with offers on it, and one of them is 20% or more, you could get an appraisal waiver on that loan. Yesterday, a listing agent asked if we would get an appraisal waiver on a file, and when we did, he accepted our offer. All we need is the price and the address to add to our file, and then we can rerun the file and see if we can get an appraisal waiver. Why don’t we stay on the appraisal waiver avenue for a moment? If you have a property listed and it has health and safety issues, such as no flooring, bad roof, leaky windows, no bathroom sink, a hole in the floor, etc., if you don’t show these items on the public listing, we could get an appraisal waiver on the property, assuming the sales price is under $1,000,000.00 and the buyer is putting 20% or more down! I am not saying that all of these things can be wrong, but it could save a seller from fixing some minor stuff, and you could have the appraisal waiver before you open escrow. I am available the rest of the week and 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! Interest rates improved yesterday and then went up slightly today! It's a see-saw battle and we need to go on a good run! 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! 0 down California Dream for all Equity Share – Registration April 3 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. Condo Update? I have seen a couple of condo policies with sufficient insurance, but they left out wildfire coverage, making them non-warrantable. I have seen that twice this week alone, and it looks like that is how some of the HOAs think they are getting around increasing premiums. They are getting away with lower premiums, but these condos are now non-warrantable! 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: On Fannie’s List. Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. This project’s master insurance policy deductible exceeds the allowable limit Bouquet Canyon Village is on Fannie’s list! Per Fannie – This project’s master insurance policy coverage does not meet the requirements Bridgewater, Emeryville - On Fannie’s list! Brookside Walk – Insurance – Cabrini Villas, Burbank - On Fannie’s list! Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction. See Blog on 5/7/2024 Canyon Village – Reserves and 10% of the dues not going to reserves! Canyon Oaks – Insurance On Fannie’s list! Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list! Cassia and Jasmine – 26949 Winding Trail Court – Fannie Mae Approval Expired. See Blog on 5/7/2024 Cornerstone – Insurance -On Fannie’s list! Creekside – ??? We don’t know Encino Oaks – 5460 White Oak Ave – On Fannie’s list! Lantana at Valencia – 27034 Hummingbird Lane – Fannie Mae Approval – expired. See Blog on 5/7/2024 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: On Fannies List. Per Fannie Mae – This project’s master insurance policy coverage does not meet the requirements. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval Expired. See Blog on 5/7/2024 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 – On Fannie’s Naughty List – This project’s master insurance policy is not written to Replacement Cost Value. See Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Scenic Hills – Insurance – On Fannie’s list! This project’s master insurance policy coverage does not meet the requirements in Selling Guide Sec. B7-3-03, Master Property Insurance Requirements for Project Developments. Shadow Ridge – Oak Park – Insurance -On Fannie’s list! Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list! The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list! Treana - Stevenson Ranch: On Fannie’s list! Per Fannie, this project needs critical repairs and may have conditions such as material deficiencies and significant deferred maintenance. Valle Di Oro- On Fannie’s list! Per Fannie Mae, this project contains timeshare, fractional, segmented, or split ownership units or other arrangements (such as mandatory rental pooling, shared interest apartments, or community apartments) restricting the unit owner’s ability to occupy the unit. 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: On Fannie’s List. Per Fannie, this project’s master insurance policy coverage does not meet the requirements in the Selling Guide! Please let me know if you hear anything new on condos or townhouses. 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
