7/13/23 Mike’s Morning Mortgage Update – Our Bridge Loans vs. Inferior Bridge Loans

Chapstick, Kleenex, Band-aids, Scotch Tape, Q-tips. These are original brands, and we sometimes say things like “Do you have any Kleenex” when you need a tissue. Or, “I cut my finger, I need to get a Band-Aid” when you just need a bandage. Lot’s of copy-cats, but we can all agree that none of them in the above categories do things as well as the original!

On that subject, I was talking to a friend yesterday, and he said that there is another lender in town promoting Bridge Loans. I looked into it and made a comparison I want to share with you.

• We go to 80% of the appraised value on our Bridge Loans
• A competitor goes to 70% of the appraised value
• We charge 0-1 point if we are doing a loan on their future residence or 1-2 points if we are just doing a standalone Bridge Loan.
• The competitor charges a minimum of 3 points on any Bridge Loan.
• We use our money to fund our Bridge Loan, and can close in 10 days or less.
• A competitor has to broker their loans, so good luck getting that done quickly.
• The rate on our Bridge Loan is 7.99% today.
• A competitor’s rate starts at 9.50% and goes up from there.

People have been copying what I do my whole career, and they may get a share of the market by doing that. We have been doing Bridge Loans and every other type of loan for the past 28 years, helping buyers and sellers. We don’t open loans we can’t close and we price everything extremely fair.

If you have a client who needs a credit score boosted and needs $30,000.00 to do that, we can help with that too. That’s our mini Bridge Loan, and it helps buyers save hundreds of dollars every month. We are here to help you and your clients get from their current spot to their new dream home.

Interest rates have improved dramatically this week, and we are back to where we were for most of June. We have ways to get us back to where we were when rates were at their best in May, but we are getting there.

• 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) are in the low 6’s.
• Conventional Loans up to $726,200.00 are in the mid 6’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the 6’s and 7’s
• Jumbo loans above $1,089,300 are in the 6’s and 7’s
• Bank statement loans - They are available with 10% down again! 7’s and 8’s + depending on down and credit score.
• No income qualifier – 20% down with reserves! In the 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 weekend 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!