The Big Picture: What Buyers Are Really Looking At – The Payment

Let’s face it, today’s buyers aren’t buying a price. They’re buying a payment.

That’s where the focus is right now. It's not about whether the home is $600,000 or $750,000, it's about:

"What can I afford each month without changing my lifestyle?"

And that's what I am hoping you can see as a Real Estate agent showing property.

Most of the younger buyers are coming in with about 5% down. They aren’t thinking about long-term tax benefits or appreciation curves. They’re thinking:

"What’s my total payment, and will it still let me go out to dinner, travel, and live comfortably?"

So, let's look at what that actually means.

Example 1: $600,000 Condo with $550 HOA

Here's what that looks like on paper:

• Price: $60,000 – Down: 5% – Rate: 6.25% – Property Taxes: 1.25% – PMI: 0.35% – Insurance: $100 – HOA: $550

Total Payment ≈ $4,950/month

Example 2: What Could You Buy With That Same Payment in an SFR?

If we subtract the $550 HOA, and add a little for Insurance, the same $4,950/month could get you approximately a $670,000 Single-Family Home (SFR) with 5% down and a 6.00% rate.

Think about that $550 in HOA = $70,000 in buying power.

And don’t forget that HOA fees are not tax-deductible.

But your mortgage interest and property taxes are.

Let's Add Another Real-World Twist

Say you’re looking in a newer community where:

• Mello-Roos = $200/month
• Insurance is $300/month higher (common in some areas)

That's another $500/month difference - the same as an HOA!

That means about $85,000 less in purchasing power for the same monthly budget.

So, depending on what’s comfortable, a buyer could be choosing between:

• A $600K Condo with HOA,
• A $670K SFR with no HOA, or
• A $615K Newer SFR with Mello-Roos and higher insurance.

All at the same payment - but very different homes, neighborhoods, and lifestyles.

Non-Warrantable Condos - The Hidden Rate Bump

Here's a big one that many forget:

If a condo is non-warrantable, the rate can be as high as 6.99% instead of the standard 6.25%.

That’s roughly $270/month higher on a $600,000 condo with 20% down.

So, with the same payment, you could buy a $650,000 warrantable condo or townhome.

The Bottom Line

Buyers today don’t care about price; they care about how it feels each month.

Our job, as lenders and agents, is to help them see the whole picture:

• How HOA, Mello-Roos, Insurance, and interest rates affect what they can buy
• Why $600,000 doesn’t mean the same thing for every property
• And how to make the most of their comfort zone payment

Final Thought

When we lead with payment-based conversations, we establish a connection.

We move from "selling" to guiding, and helping buyers understand what's behind the numbers.

And when they see that you truly get where they’re coming from, that’s when they buy with confidence.

Please let me know if you have any questions or if you or any of your clients, friends, or family members need my guidance. I’m just a call, text, or email away.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Yesterday was awful, and today is making up for the losses of yesterday so far! Tomorrow is a new day, and we will see what it does to the industry’s volatility!

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers, including conventional FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the 5s.
• Conventional loans up to $806,500 are in the high 5’s and low 6s.
• High-balance loans from $806,501 to $1,209,750 are also in the 6s.
• Jumbo loans above $1,209,750 are in the 6’s.
• ARMS in the 5’s and some in the 6’s
• Bank statement loans are available with 10% down again, with larger down payments in the 6’s++.
• Profit and Loss Statement loans require 20% down - no bank statements needed, only a profit and loss statement!
• 0 down loans are available in the high 6s, with a minimum credit score of 620, up to $1,300,000.
• Private Money lenders offer Hard Money Loans with 35% down.
• No-Ratio Loans require a 30% down payment.
• DSCR (Debt Service Coverage Ratio) loans are available with as little as 15% down.
• Bridge Loans typically have an interest rate of 7.99% with limited fees, helping you get where you need to go!
• 3/2/1 Buydowns, 2/1 Buydowns, and 1/0 Buydowns are available at great starting rates!

Please note that interest rates are subject to change without notice, and the information above reflects LA County Loan Limits.

**Good News for Condos:**   

NONE

**Bad News for Condos***     

Nothing New!

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo and are unsure whether it is warrantable or Non-warrantable, please call me, and we can look up Fannie’s list in real-time. We don’t know when something has changed, and it would be impossible to track everything day by day, but we don’t mind looking up a few items each day.

The full state of California’s naughty list has been added to: MikeMeena.com! See the link below:

https://mikemeena.com/non-warrantable-condos/

Let me know if you hear anything new about condos or townhouses.

I am available every day if you need anything.

📞 Direct Line: 661-291-2222 – Text OK

📞 Cell: 661-714-6258 – Text OK

📞 Office: 661-260-2970 ext. 2222 – Text OK

📧 Email: Mike@AugustaFinancial.com

Have a great day and an even better tomorrow! Please call me when you have a client who needs to borrow!