7/30/24 – Chenoa – 0  Down Loan to $1,191,300

7/30/24 – Chenoa – 0 Down Loan to $1,191,300

President | Loan Officer
Mike Meena
Published on July 30, 2024

7/30/24 – Chenoa – 0 Down Loan to $1,191,300

There are many loan programs out there with down payment assistance, and today, I want to talk about the FHA Chenoa program. This loan program offers an FHA first mortgage and a private 10-year fixed-rate second mortgage.

 

The first Mortgage is a 30-year fixed rate up to 96.5% of the purchase price, with a second mortgage for the remaining 3.5% down. The guidelines are the same as FHA, but we can only go down to a 620 credit score. There are no income limits, so your clients can make Millions of $$$. The maximum loan amount on the first in Los Angeles County is $1,149,625, which will allow you a purchase price of $1,191,300 with no money down.

 

I know what you are thinking - what’s the catch? There are a few catches, such as the interest rate and payment are higher than a standard FHA loan. The second loan payment is also high, and the 10-year amortization makes the payment about $130.00 for every $10,000 you need on a second mortgage. Lastly, the payment is about 10% higher than an FHA loan with a 3.5% down payment.

 

The good news is they can buy a house up to $1,191,300 with no money down. You can get the seller top pay closing costs and the buyer is in with $0 out of pocket! Cheaper than rent! Well, the payment may not be cheaper than rent, but lets look and see what the true cost would be to buy a house for $790K with no down!

 

If you buy a house with 0 down and a $790,000 price, you will have the following payment:

Principal and Interest = $5155.00 / Property Taxes $823.00 / Insurance $250.00 / PMI $444.00 / 2nd Mortgage $350.11 / Total = $7022.11

You will be paying off $9682.00 in the first year of ownership, which will increase annually. You can also write off about $52,400 in interest on our taxes, which will likely put an additional $12,582 back in your pocket from your tax return at the end of the year. They can check with their Accountant to confirm. Property values have increased by about 5.6% on average over the past 70 years, and if property values go up by just 4% per year, then the above Property will increase by $31,600.00 each year. So if all of the above holds, your payment will be $7022 – you will pay off $806, you will receive $1048.00 as a monthly tax refund, and your appreciation will be $2633 monthly. If all holds, the true cost of buying the above Property is $2535.00 monthly. THAT IS CHEAPER THAN RENT!

 

Imagine a refinance in 6 months if rates go down 1% and you built a little more equity and can refinance the first and second together. Your payment would drop to the following:

Principal and Interest = $4289.69 / Property Taxes $823.00 / Insurance $250.00 / PMI $444.00 / 2nd Mortgage $0 / Total = $5806.69

It’s hard to make money in real estate if you don’t get into the game!

 

Here is another reminder that we have a Real Estate Roadmap for the new Buyer/Broker agreement and upcoming changes on Wednesday, August 7th. Five top agents are ready to share their insights in our conference room. Through role-playing, Q&A sessions, and input from the audience, we aim to enhance our collective knowledge and skills. Please click below to RSVP!

 

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 me, please text (661-714-6258) or email me at Mike@AugustaFinancial.com.

 

But wait, there’s more!

 

Interest rates are better again today, and we doing well lately!

  • 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 mid 6’s
  • High Balance Loans $766,550.01 – $ 1,149,825.00 are high 6’s and low 7’s
  • Jumbo loans above $1,149,625 are in high 6’s and low 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!
  • 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?  

Cimmaron Oaks is now naughty! Insurance! We are sending this to our lenient investor to see if we can get it through!

 

Condo / Townhome – issues we know of now. Properties can be financed with 10% down and are considered NON-WARRANTABLE:

  1. American Beauty Condos - The brown ones - Insurance: 50 Million in coverage for 748 units is not nearly enough!
  2. 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!
  3. 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.
  4. Bouquet Canyon Village is on Fannie’s list! Per Fannie – This project’s master insurance policy coverage does not meet the requirements.
  5. Bridgewater, Emeryville - On Fannie’s list!
  6. Brookside Walk – Insurance –
  7. Cabrini Villas, Burbank - On Fannie’s list!
  8. Calla and Rowan – 27513 Illumination – Fannie Mae Approval expired – New Construction.  See Blog on 5/7/2024
  9. Cameo Woods HOA - Per the litigation disclosure, the association is being sued by a homeowner for water heater damage and discrimination, and the damage is still ongoing. We received confirmation that the HOA’s insurance agency is not covering the lawsuit, and the claim was denied due to the nature of the complaint.
  10. Canyon Village – Reserves and 10% of the dues not going to reserves!
  11. Canyon Oaks – Insurance On Fannie’s list!
  12. Casa Marabella – 13951 Sherman Way, Van Nuys -On Fannie’s list!  
  13. Cassia and Jasmine  – 26949 Winding Trail Court  – Fannie Mae Approval Expired. See Blog on 5/7/2024
  14. Cimmaron Oaks – Castaic – Insurance is too low!
  15. Cornerstone – Insurance -On Fannie’s list!
  16. Creekside – ??? We don’t know
  17. Encino Oaks – 5460 White Oak Ave – On Fannie’s list!
  18. Heather Ridge – Deductible too high! not enough insurance – Fannie Naughty List!
  19. Lantana at Valencia – 27034 Hummingbird Lane – Fannie Mae Approval – expired. See Blog on 5/7/2024
  20. Liberty Canyon HOA – 27409 Country Glen Road, Agoura Hills, CA- On Fannie’s list!
  21. Madison at Towne Center  – Litigation – We can do with 5% down, but others can’t!
  22. Mariposa: On Fannies List. Per Fannie Mae – This project’s master insurance policy coverage does not meet the requirements.
  23. Orchid at Valencia – 27033 Open Sky Place – Fannie Mae Approval Expired. See Blog on 5/7/2024
  24. Penn Court HOA – 4201 Pennsylvania Ave La Crescenta On Fannie’s list!
  25. Princessa Estates – has $8200 in Reserves, and they are voting on an assessment in May!
  26. 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.
  27. 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.
  28. Shadow Ridge – Oak Park – Insurance -On Fannie’s list!
  29. Sherman Way Condos – 17900 Sherman Way Reseda – On Fannie’s list!
  30. The District Community Association – 19533 Cardigan Dr, Northridge – On Fannie’s list!
  31. 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.
  32. Valle Di Oro is 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.
  33. Vista Del Canon – Insurance is too low, UGH!
  34. Village Park Condo – It’s over the max deductible with that 50k per unit.
  35. Walnut Gardens II – 7320 Lennox Ave Van Nuys CA – On Fannie’s list!
  36. Warner Center Condos – 5515 Canoga Ave, Woodland Hills, CA –  On Fannie’s list!
  37. 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 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 me, please 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!

President | Loan Officer
Mike Meena President | Loan Officer
Click to Call or Text:
(661) 714-6258

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