Bridge Loans and Good Condo update Happy Tuesday, and I hope you are doing well! I have some updates on Condos below, so make sure you get to that part after you read about my Bridge Loan Comparison! Keep in mind that we offer all of these models, but I never see a reason to go outside the Augusta Bridge loan. We started our bridge loan product over 25 years ago, offering a trusted solution that maximizes benefits for our clients. Our approach allows borrowers to access up to 80% of the appraised value of their departing residence, providing the maximum possible funds to secure their next property. We now see alternatives muddying up the marketplace and confusing consumers, like the hybrid buy-before-you-sell option and the upfront purchase model. Still, our experience suggests these carry significant drawbacks. Our sellers enjoy a generous six-month window to sell their homes without additional fees, ensuring flexibility and control. Let’s compare these models to understand why our method stands out. Augusta Financials Bridge Loan Approach Our bridge loans are designed with your financial success in mind. By leveraging up to 80% of your home’s appraised value, we provide substantial funds for your new purchase while giving a buyer six months or more to sell their current property without extra costs. The rate of 7.99% is far lower than any other model out there by 2-3%. This structure avoids the pressure of rapid sales, allowing sellers to maximize their equity through a market-driven process. We can usually get these closed with limited documentation in less than 2 weeks! The Upfront Purchase Model Several companies offer to buy your home upfront, agreeing to pay more if the resale exceeds their offer, typically charging a 2% fee and relisting with the original broker. While this can expedite your move, it shifts ownership and control to the company. If the resale price falls short, you may lose potential equity. Opendoor, a leader in the iBuyer model, has faced significant losses from overpaying for homes, with many of their former purchases now sitting on the market at reduced prices, reflecting misjudgments that can stall sales and erode value. The Hybrid Buy Before You Sell Model The hybrid model is exemplified by companies that partner with local investors to purchase your home upfront, charging 2% of the value plus closing costs. These products typically only go to 70% of the appraised value, which can limit what you get out of the house. One issue here is the cost of 2% on a $1 Mil property where the buyer owes $500K, which will only get the buyer $200K at the cost of 2% or $20K! 20K is a high price to pay! There are also a lot of questions on whether lenders will accept the purchase contract by these companies as legitimate, and it is only a matter of time before Fannie and Freddie say thanks but no thanks! Why Augusta Internal Financial Wins Unlike the upfront purchase model’s reliance on third-party pricing risks or the hybrid model’s legitimacy and fees, our internal bridge loan offers transparency and control. You avoid the financial missteps seen with Opendoor’s iBuyer losses or the uncertainty of others. Our fee structure, high loan-to-value limits, and lower rates make our internal product a fan favorite. In a market where timing and equity are critical, our approach empowers you to bridge the gap on your terms, free from the pitfalls that plague other models. Please let me know if you have any questions or if a client needs my guidance. I’m just a call, text, or email away. 📞 Cell: 661-714-6258 📞 Direct Line: 661-291-2222 📞 Office: 661-260-2970 ext. 2222 📧 Email: Mike@AugustaFinancial.com But wait, there’s more… Interest Rates Rates are on a winning streak as Federal Reserve Chairman Powell discusses a path for rate cuts. There is still fear of inflation due to the tariffs, but there may be some easing on those fears when data pours in over the next month! Loan Programs We do loans on Non-warrantable condos! We offer 12-day escrows for pre-approved buyers - 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 high 5’s and low 6’s. Conventional loans up to $806,500 are in the mid 6s. High Balance Loans from $806,501 to $1,209,750 are also in the 6’s. Jumbo loans above $1,209,750 are in the 6’s and 7’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 30% down. 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:** Cornerstone – It looks like it will be coming off the Fannie List shortly! American Beauty Village East – Off the naughty list! Canyon Country AKA Canyon Gardens - new insurance provided - American Beauty GARDEN – YAY! American Beauty Classics – Terrific **Bad News for Condos*** Parklane Condos – Simi Valley CA – Insurance is adequate! Park Northridge HOA – 19533 Rinaldi – Critical repairs and deferred maintenance The full state of California 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. 📞 Cell: 661-714-6258 TEXT: 661-714-6258 📞 Office: 661-260-2970 ext. 2222 📞 Direct Line: 661-291-2222 📧 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.
