9/7/23 – Appraising houses with Solar Panels or an ADU

Solar Panels are becoming increasingly popular on properties, but please understand that they only ADD VALUE on an appraisal if there are similar comparable sales with solar. If you have Solar panels, leased solar is not a comparable sale. If you have an ADU that costs you $100,000.00 and has no similar sales, then the ADU will have limited value. With limited sales lately, finding comparable sales for some of our unique properties is becoming harder. Remember that Appraisals are not an exact science; the appraisals are run through a computer and graded based on adjustments. The automated system could request an appraisal review if the adjustments exceed the usual parameters.

Condo / Townhome issues we know of now:

• American Beauty Village – Insurance
• Scenic Hills – Insurance
• Mariposa – Litigation – Agreed upon, but not yet recorded
• Bouquet Canyon Village – Insurance
• Scenic Hills – Insurance
• West Creek / West Hills – Insurance
• Cornerstone – Insurance (I think they may be a few weeks away from renewal, so you may be able to sneak something in?)

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 got beat up in the past few sessions. Today is a recovery day, and let’s hope the rally holds or improves. Rates are off their Augusta 21 highs, and nobody knows what is next!

• 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 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!