Client Success Story: Turning a Fixer Dream into Reality with a Bridge Loan

Yesterday, I got a call from a past client - we hadn't spoken in over 20 years! She’d just found her dream fixer-upper… but it came with a few quirks:

• Empty pool
• Missing walls inside the house
• Missing cabinets
• Broken windows

She had already received a Fix & Flip loan quote - rates in the 10.5% range with 3 points up front - and wanted to see if I could do better. We spoke about an FHA 203K loan, but the upfront fees and having to deal with a HUD advisor would slow down the process, plus qualifying for that loan with the loan they currently have and paying 1.75% for UFMIP and paying PMI are all negatives to that loan.

I pulled up the property, reviewed her finances, and was able to approve her on the spot for a Double Bridge Loan. Here's how we structured it:

• Her current home: worth $1,000,000, with only $300,000 owed
• We’ll tap into her equity to get $500,000 cash out
• That $500K becomes the down payment on the $1.2M fixer (about 30% down and the rest for repairs while she sells her old house)
• She'll also have funds to handle the major repairs while she lists and sells her current home.
• Once her old home sells, she'll use the proceeds to finalize everything.

Why this worked so well:

Bridge Loans allow you to buy your next home before selling your current one - without the high rates and heavy points that often come with other short-term loan options.

Even better news:

With rates coming down recently, many of our Bridge Loans are now landing in the 7.375% - 7.625% range - far below what others are charging! We still quote 7.990% to protect against rate increases, but many clients are pleasantly surprised at closing when their rate is even lower.

The basics on Bridge Loans:

• Perfect for buying before you sell
• Decent (but not perfect) credit is fine
• Income is not required (loan term is under 12 months)

And don't forget - we also offer Flex Bridge Loans (the "sister" loan):

• Great for a deposit on your next home
• Pay off debt to boost credit scores
• Make home improvements before listing
• And more!

Yes, Flex Bridge rates are a bit higher, but they often save clients thousands by helping them get their credit fixed, their house in order, or the money they need to get that next home.

If you or someone you know wants to buy before they sell - or needs quick access to equity - let's talk. You might be shocked at how easy it can be!

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

Interest rates are slightly better today, but nothing to write home about. We are waiting on some terrible economic news that will push rates lower and allow everyone a better payment on their next home. No Pandemics please!!!

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 high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the low to mid 6s.
• High-balance loans from $806,501 to $1,209,750 are also in the 6’s and 7’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 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:**   

Canyon Village – No Longer naughty! CV did their time, and I explained that I don’t want to see them here again! They get it, but who knows with these HOAs nowadays?

**Bad News for Condos***     

Arroyo Park – Critical repairs. We have seen others fix critical repairs in 60 days or so, but we will see what Arroyo Park does.

CONDO HELP!!!

If you have a listing or a buyer interested in a specific condo, and you’re unsure whether the condo is warrantable or Non-warrantable, please call me and we can look up Fannie’s list in real time. I have already done that on three condos today, and my list was accurate on all 3. 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 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.

📞 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!