6/13/23 – Fire Insurance

I am getting a lot of inquiries and concerns about insurance and wanted to get you a few quotes on different properties we are doing loans on or insurance agents I know have quoted lately! Yes, rates have increased, but people are still writing in most areas. I am not an insurance expert, but I am an expert in helping your clients feel good about what they are buying. Don’t shoot the messenger, but here is what I see in insurance:

• 15341 Iron Canyon - Canyon Country – sold $1.8 Mil – Cal Fair Plan – $5550.00 + other policies 
• 2174 Mar Vista Ave - Alta Dena CA - 1.5 Mil ish value – $1301.00 low coverage to $2346.00 high coverage
• 29371 Calle Primavera - Santa Clarita – $3677.00 - Pending $959K
• 22620 Enadia Way – West Hills CA – $1610.00 – Pending – 899K
• 13417 Aldergrove - Sylmar – $3013.00 - 800K ish value  
• 27455 Cardinal Court Saugus – 780 site condo – $1920.00 – all other quotes were 4K+
• 4411 Cloyne Street Oxnard – 700K house – $3003 
• 10331 Owensmouth, Chatsworth – $610K Pending – $865.00
• 3850 Vista Circle Lancaster – 470K pending – $1374.00
• 817 Kelton Street – Tehachapi – 315K Ish house – $811.00

the above is a small sample size, and I will keep you updated as more come through. We have seen a few condos, and the HO6 insurance is up slightly, but nothing crazy! We already have insurance on most of the files we have in process, and I was trying to show what we have been able to get over the past week or so. If more Insurance companies leave California, we must resort to California Fair Plan. My biggest concern with Fair Plan is the timing of everything, and if they get inundated, we will have significant issues closing on time due to getting the insurance we need to close. Let’s hope it doesn’t go that far!

CPI came in at .1% today, and that helped momentarily. The core CPI followed, and there is a question of whether the Fed will raise rates at tomorrow’s meeting - another bad day for you, Barry Habib followers that believe that rates will drop dramatically this week. I wish he were right, but he hasn’t been right in 18 months!

• 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!