February 14, 2023

Happy Valentine’s Day to all of you beautiful people out there! I was thinking of sharing my most embarrassing Valentine’s day story, but instead, I will tell you about the Family Opportunity Mortgage. The Family Opportunity Mortgage allows families to buy a home for a family member who cannot qualify for a mortgage on their own. This program will benefit you as you speak with potential clients.

This mortgage program is for families who want to purchase a home for a family member who cannot obtain financing due to their lack of income or credit history. The Family Opportunity Mortgage offers more flexible underwriting guidelines than traditional mortgage loans, making it easier for families to qualify for the loan.

You can use the Family Opportunity Mortgage to purchase a primary residence, a second home, or a rental property. It can be a powerful tool to help clients achieve their home-buying goals.

One more thing to note! It may make sense for your client to add Mom or Dad to the loan, and then when they finally pass in 75-100 years, they will inherit the property on a stepped-up basis, avoiding any capital gains taxes.

The qualification process is similar to a regular loan, with the following additional items needed:

• Proof of relationship to parent if it’s not obvious, for instance, if you have a different last name than your parent
• Parent’s pay stubs, if any
• Parent’s Social Security award letter (to prove your parents can’t afford the mortgage on their own)

Rates are struggling a bit today as the CPI was at .5%, with the core CPI coming in at .4%. This is a slight improvement annually, but we were hoping for something else to push rates lower.

• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!
• Government Loans (FHA / VA) are in the low to mid 5’s.
• Conventional Loans up to $726,200.00 are in the low to 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 low to 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 – 20% down with reserves! In the 8’s and 9’s!
• 0 down loans are in the high 5’s to low 6’s- 620 credit score min right now! Low 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 is interested in buying a property! My cell is 661-714-6258, and my office line is 661-260-2970 ext. 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!