8/3/2023 Condo”demic”? More condos are now non-warrantable!

Non-warrantable condos! We are seeing this more and more now due to insurance issues! The Mariposa Condos have been in litigation for about ten years, and we have been able to get loans there with no problems. We now have three more that I know of in Santa Clarita. West Hills West Creek, American Beauty Village East, and Scenic Hills HOA. We are hearing these issues are coming up everywhere, and if you hear about an issue in a complex, please let me know so I can update everyone. These three complexes are all due to insurance issues, and this is not just a Santa Clarita issue.

If you run into a Non-warrantable condo, your buyers will have to pay a higher rate in these complexes. They will be required to put 10% down, and the loan should go through smoothly like a conventional loan. Pretty simple. Expect the rate to increase by 1% over conventional loans with traditional guidelines and close in 30 days.

Here is the big NO NO!!! Do not believe some lender or your client that they can get the deal done with a conventional loan because they will get to the end and finally get the HOA paperwork to find out that they can’t get the deal done because there is not enough insurance on the complex. YES, an underwriter could miss it, and you could get lucky. These things are moving fast, and the insurance issues are coming up on renewal. Please don’t believe what a lender says unless you know them and they have all the info. I am concerned that this will continue and expand, and we will have a Condodemic. We will see delays in closing if you get the lender to convince your buyer that they can do a conventional loan in these complexes.

Rates have gotten worse all week! YAY! Remember late June and early July when rates increased 17 days in a row? Rates are now higher than before, so things are looking up. We have regular rates, high demand, no inventory, and rising values.

• 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 6’s.
• Conventional Loans up to $726,200.00 are in the high 6’s and low 7’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the high 6’s and low 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!