5/30/2023 – Loan Option for studio workers that are unemployed due to the strike The ongoing writer’s strike is starting to take some buyers out of the market because they can only qualify for a loan when they have a job! Wait, and read! We have loan programs we can do even if you don’t have a job! Most of the unemployed in the industry choose to go the disability route, but some go on unemployment. We have quite a few buyers that are affected by this, and we have multiple programs that will fit them even if they are not working now. Many of them will sit on the sidelines, while others will have time to move up, down, or sideways now that they have a little extra time. We don’t want to turn those people away! It sounds like this strike will continue until at least August, so here is how I am selling this to buyers. Mr. and Mrs. Tatum want to sell, and they found their dream home. They owe $400,000.00 on their $750,000.00 house and want to buy for $950,000.00. They have some credit card bills and want to hold aside some cash in case the strike lasts longer than they think. They want to put 20% down on the new house. If they close on or after July 6, their first monthly payment will be due on September 1 for about $7500.00. If they come back from the strike on, Say, August 15, and everything gets ramped up again, there is a good chance we could have a loan closed by the middle of September, and the buyers can refinance at that time and drop their payments to about $5900.00 assuming rates are where they are right now. People live paycheck to paycheck, and even though this loan payment is higher, the higher cost is temporary and can also help with cash flow. We also have to ensure that the buyers qualify for the lower-rate mortgage when they return to work, as we have an average income for people working in the studios. The good news is most people in the industry will go on disability for the period that they are off work, and that time doesn’t count against the income average. Suppose they go on unemployment instead of disability. In that case, we have to average that income, including the time off, which could be an issue if the strike continues for an extended period. We will ensure we can get them the refinance when they return to work. We will snap the 19-day losing streak in interest rates, and rates will fall for the first time in almost three weeks! None of the news makes sense, and if I were to look at today’s economic news, rates should be higher today than Friday, but Bond Traders liked something, and I assume that something is the debt ceiling about to be raised. SPEND MORE, AMERICA! LOL! 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge Government Loans (FHA / VA) are in the high 5’s. Conventional Loans up to $726,200.00 are in the 6’s. High Balance Loans $726,201.00-$ 1,089,300.00 are in the 6’s Jumbo loans above $1,089,300 are in the 6’s 5/1, 7/1, 10/1 Arms are in the high 6’s. Bank statement loans - They are available with 10% down again! 7’s + depending on down and credit score. No income qualifier – 20% down with reserves! In the 8’s and 9’s! 0 down loans are in the mid to high 6’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 - are typically 7.99% with limited fees – But they get you where you need to go! 0 down California Dream for all Equity Share – Postponed until 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 around 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 me at 661-714-6258 or email me at Mike@AugustaFinancial.com. Have a great day and a better tomorrow! Please call me when you have a client that needs to borrow! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.