5/7/24 – First Impression – Condo updates Have you ever heard the saying, “You have one chance to make a good first impression?” Yesterday, I spoke with a potential client who had spoken to another lender. Unfortunately, the client was not in good health and is on temporary disability, which is not a valuable source of income unless you have a specified time to return to work. In this gentleman’s case, he is planning on going on permanent disability in November or December this year. His expenses on his current house are higher than his income, but he spoke with a lender who said he will not qualify until he goes on permanent disability. I asked my usual questions, including his age and whether he had any IRAs or 401 Ks. He was over 59.5 and had money in both IRAs and a 401K! Those assets are good news because he can qualify to sell, move down, and lower his overall payment based on the withdrawal of funds for one month with 36 months remaining. If he had $370,000 in retirement accounts, I could have him withdraw $10,000 and have 36 months remaining at $10,000.00, and he could use $10,000.00 as his monthly income. The other lender did not ask this question and told him he had to wait until he got a permanent disability. Unfortunately, this gentleman heard that he could not qualify until he was on permanent disability, so he shut down and looked for why not to move now. The agent has the perfect home for him, but the buyer no longer wants to speak and thinks we will leave him homeless. When I got off the phone, I was sad, as I knew that if I had spoken with this buyer from the start, we would have had time to review his options and explain how we could make the process work from the beginning. I would have shown him the possibilities of using all his proceeds for the down and holding back $50K or $100K. Qualifying would have never been a question, and we would have only discussed how much he would save by downsizing and how much longer his money would last him. Now, he is waiting at least 6 months and hoping for the right single-story home. I also know that he will spend at least another $15K, which is valuable for a person in his position. How did I start this message? “You have one chance to make a good first impression?” Using the right lender would have helped this client and the agent. It was a small loan for $100-$200K, so it’s not like I lost a lot, but it’s like a surgeon going in to fix another person’s job. You have to get through the scar tissue and do some cleanup before you can do the surgery, and some people don’t want to go through that again! 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 Changes? I was told by a good source that Cornerstone at Copperhill has good insurance again! NOT Confirmed!!! Scenic Hills is working on their Insurance issues! Still issues in Scenic Hills, see below! These next 4 are interesting – They are new construction and lost their Fannie Mae approvals. They could all be fine, but a new project that doesn’t not have Fannie approval can be an issue. Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval Expired Cassia and Jasmine – 26949 Winding Trail Court – Fannie Mae Approval Expired Lantana at Valencia – 27034 Hummingbird Lane – Fannie Mae Approval Expired Here is what it takes to get a loan on a New Construction Condo: A project for which one or more of the following is true is not financeable with a normal conventional loan without Fannie Mae Approval: Fewer than 90% of the total units in the project have been conveyed to unit purchasers (or 80% if it meets the exception noted in the row above); The project is not fully completed, such as proposed construction, new construction, or the proposed or incomplete conversion of an existing building to a condo; The project is newly converted; The project is subject to additional phasing or, annexation; or HOA is still in the developer’s control. 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! 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! 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. Interest rates are improving daily, and we are now at their best in about 30 days! Recession is a good word regarding interest rates, so let’s hope that talk keeps coming! Stop spending people, and let’s get these rates lower! LOL! 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. 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.
