December 8, 2022

A couple of things I don’t write about often are Well Certs, Septic certs, roof certs, and health and safety items. Yeah, these are not common everyday things, but sometimes we run into properties that have a few issues, and they either get called out by the listing agent in the notes or they get called out by an appraiser.

A Well Cert and Septic Cert are asked for when there is a well or a Septic that seems to be in disrepair. We see wells called out by appraisers and Underwriters in areas like Acton and Agua Dulce, where the wells have low pressure. Some homes with dead wells will have trucked in water, which is OK for some loan programs. FHA hates it!!!

Roof certs: Any missing tiles or stains in the ceiling will guarantee an appraiser to call for a roof cert. If an appraiser misses it and the underwriter questions the roof, you will need a roof cert stating that it doesn’t leak and is sound. Paint the stains and save yourself from hassles down the road!

Other items that can be called out would be cracks in the foundation, inadequate electrical service, or plumbing issues. Broken windows, flooring missing, counter tiles missing, railings missing on staircases, cracks in the yard that people can trip on, broken drywall, stains on walls or the ceiling, or a house in overall disrepair are other things to be concerned about.

So you go to take a listing, and you have a few of these issues, and your clients need money to repair the property. We can do a mini bridge loan to help with repairs, assuming they have equity. Another trick is not to show the bad photos and trick everyone that comes to the house and hope you get an offer with 20% down and an appraisal waiver. I don’t know if that is against the code, but it works. LOL! Do that one photo of a front door and put whatever you want in the agent notes, but don’t put them where an underwriter can see!

Yesterday was a good day for rates, but today is not so good. Tomorrow has some significant economic numbers, including the one-year and five-year inflation outlook, and next week is the CPI! Let’s hope for low numbers all around!

• 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 weekend 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!