9/19/23 – Free and Clear homes may be the answer!

I mentioned this a few months ago, but it is time to do it again. The 42% of the homeowners who own their primary residence free and clear are not interest rate sensitive. I mention this because these things move the market, and people willing to buy and sell have to find the house they want before they list and sell their home. Getting more inventory will help things immensely, and people don’t know they want to sell until we have that discussion. How many people are living in a two-story house and owe nothing on it but would like to move to a single-story home? How many people out there have a home that needs upgrades but don’t have the cash, patience, or knowledge to go through a complete remodel. Some people have not been in their pool for 10 years since their kids were small and want to eliminate the expense of having a pool? Others are approaching their $250K/$500K Property Tax Exemption limit.

So let’s take a person who owes nothing on their house, and they find the dream home that they want. Their current home is worth $1.1 Mil, and their new home is priced at $1.0 Mil. We can get them a loan for the $1.0 Mil with no qualifications required on a Bridge Loan. No income qualification, no asset qualifications, no credit qualifications, NO QUALIFICATIONS! We have closed dozens of these loans this year, and they go very well, and we can close them very quickly. We can do the same when they have loans and get them from house A to house B quickly and easily.

Condo / Townhome issues we know of now:

1. American Beauty Village – Insurance
2. Scenic Hills – Insurance
3. Mariposa – Litigation – Agreed upon, but not yet recorded
4. Bouquet Canyon Village – Insurance
5. Scenic Hills – Insurance
6. Madison – Litigation
7. West Creek / West Hills – Insurance
8. Cornerstone – Insurance

Please let me know if you hear something new on Condos or Townhouses. We will see premiums increasing, likely increasing the HOA Fees soon!

Interest rates were better yesterday and worse today. It’s a see-saw battle right now, and lower rates will hit us someday!

• 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 to mid 6’s.
• Conventional Loans up to $726,200.00 are in the low to mid 6’s and low 7’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 – 40% down with reserves! In the 6’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!