December 6, 2022

The new loan limits were released last week and will help get this market going again! Remember that the new loan limits will take effect on FHA and VA loans in January, but conventional limits apply now! Below are the limits and some other important features.

The conforming Loan limit is $726,200.00 in Los Angeles County, and the High Balance Loan limit is $1,089,300.00.

A conforming loan will allow a buyer to buy with 3% down to that loan limit. So a buyer can purchase for $748,650 with 3% down.

The high balance Loan has a minimum down payment of 5%. High Balance loans allow buyers to buy up to $1,146,600.00 with their 5% down.

You can do 3.5% down on FHA loans, so a buyer could feasibly buy with 3.5% down up to $1,128,800.00.

VA, has no limits, and buyers can buy up to $50,000,000.00 with no down. I want that loan, please.

Interest rates are higher when the loan amount goes over $726,200.00, and FHA PMI is higher when the loan amount is above $625,500.00.

A 2/1 buydown can be done on all of these loan products, none have pre-payment penalties, and reserves are not generally required at the close of escrow.

On the other hand, when a buyer gets a Jumbo Loan, they require a minimum of 10% down and 12 months of payments in Reserves.

That is our lesson for today. LOL! We do loans in all states except the Dakota’s, so please let me know if you need anything.

We had a good week in rates last week, and this week is not so good so far! Let’s hope it is short term, and we have some significant economic numbers coming out next week. Keep your head up, and get your clients a Loan Officer who can talk them off the fence and explain why they should buy now!

• 30-year Government Loans (FHA / VA) is in the high 5’s.
• Conventional Loans up to $726,200.00 - in the high 5’s and low 6’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the low to mid 6’s
• Jumbo loans above $1,089,300 are in the mid 6’s
• 5/1, 7/1, 10/1 Arms are in the 5’s
• Bank statement loans - They are available with 10% down again! 7’s + depending on down and credit score.
• Stated income loans – I have one bank with 30% down, but everything else has to be perfect! Interest rates are in the 8’s.
• 0 down loans are in the high 7’s to low 8’s- 620 credit score min right now! Mid 6’s, for the most part, up to $725,000.00.
• 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 7.49% with limited fees – But they get you where you need to go!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I will be around all week if you have any questions or if someone interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 xt. 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!