A Day in the Life – Solving Problems – Doing Business

Yesterday was one of those days that reminds me why I love this job, and why I love this game. Yesterday, I spoke with six potential new clients, and three of them had some with a quirky challenge, and I am confident I turned them into wins. Here’s how it went down!

Client #1: From Side Hustle to Homeowner

First, I had a guy between jobs but had been running a side business for six years. That side gig? It’s now his main hustle. Now that he has some free time, he wants to buy a house, but his bank deposits and tax returns are spotty? He claims a lot of his income is cash, and he originally wanted to put 10% down on a property. The problem is, with his financials looking like a Jackson Pollock painting, that wasn’t flying.

Here’s the fix: I told him that with 15% down, we could do a profit and loss (P&L) statement loan. Yep, it’s like the stated income loans from the pre-crash days, back with a vengeance. His credit is stellar, he has plenty of assets, and he has money in a retirement fund. He’s golden with a P&L from his accountant showing the business’s growth. No W-2s, no tax returns, just a simple Profit and Loss.

Client #2: Turning a “No” into a “Yes”

Next, I got a client who’d been turned down by another local lender. They had 40% down, but part of their income is $4,500/month from IHSS (In-Home Support Services), which is non-taxable.

My solution was simple: Pay off a motorcycle and two credit cards to clean up the debt-to-income ratio, drop the down payment to 35%, and gross up that IHSS income. Non-taxable income gets a 25% boost for qualifying - $4,500 becomes $5,625 in the underwriter’s eyes. Boom - approved. The client’s thrilled, and I’m shaking my head at how easy that fix was.

Client #3: The Condo Conundrum at Mariposa

Then, there was a buyer pre-approved by a lender in the San Fernando Valley for a condo with 10% down. Sounds great - until he got out here and fell for units in the Mariposa complex. That Valley lender had never dealt with a non-warrantable condo, and the real estate agent pushed the buyers my way! Mariposa’s been a no-go for regular Conventional or FHA loans for nearly a decade. First, it was balcony litigation; then, even after that settled, the insurance coverage tanked - too little to satisfy Fannie or Freddie.

I gave him the full 10-minute backstory on the project, and why it’s undervalued by 10%. When this insurance mess clears (eventually), Mariposa’s prices will bounce harder than anywhere else in Santa Clarita. Sales pitch? Nope - just the truth! We sent them what we need to start the process, and I hope they go into escrow soon!

The Market Vibe & Why I’m Your Guy

We also had a couple of cookie-cutter deals roll in - bread-and-butter stuff. It’s almost April, and the market’s starting to hum. It should - spring’s when buyers wake up. I can say honestly that many of you are leaving money on the table when you let your clients go out into the world trying to find a good loan vs. sending them to someone who is knowledgeable, confident, connected, trustworthy, dedicated, resourceful, proactive and can help you and your clients get offers accepted. Let’s put it differently: your team can add Michael Jordan, and you decide it’s better to stick with Joe Barry Carrol! LOL! By the way, Joe Barry Carrol’s NBA nickname was Joe Barely Cares!

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

TEXT: 661-714-6258

📞 Office: 661-260-2970 ext. 2222

📞 Direct Line: 661-291-2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

Rates were a little better last week, and we got hit pretty hard yesterday! They have rebounded slightly today but are still near the best levels since last October!

• We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans.
• We provide loans in all states, so call me with anything you need.
• Government Loans (FHA/VA/USDA) are in the 5’s and very low 6s.
• 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 low to mid 6’s.
• Jumbo loans above $1,209,750 are 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 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:**

Canyon Park Carriage – Approved by Fannie Mae until 7/9/2025

Bella Ventana – Approved! YAY! They just got their insurance deductible corrected, so we sent the info to Fannie, and they have been removed from Fannie’s list and will be off my naughty list! By the way, this was spearheaded by a real estate agent that lives in BV!

**Bad News for Condos**

Las Ventanas – Insurance is the main culprit here!

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!