February 7, 2023

If your buyer doesn’t have a credit score, they may still be able to qualify for a mortgage by demonstrating alternative sources of creditworthiness. Requirements may vary depending on the lender and the type of mortgage they’re seeking, but some common ways to verify creditworthiness without a credit score include:

• Proof of steady income and employment history
• Evidence of financial stability, such as a large savings account or other assets
• Three utility bills, cell phone, car insurance, or rent, with proof the buyer pays on time.

We qualify buyers as if they have a 660 credit score when they don’t have a credit score, and they do the above.

It usually takes about six months of credit for buyers to get a credit score. You can add someone to your credit card as an authorized user, which will sometimes reduce the timeframe to get a credit score. That borrower doesn’t need to know the credit card number or have access to the card. You can also add someone to a credit card to increase their credit score. One thing that is important to note is that a credit card with a high balance proportionate to the limit can adversely affect a credit score, so you need to be careful when adding someone to your credit card.

Interest rates were at their best levels in a long time on Thursday, then the Employment numbers came out, and we jumped a bit Friday and Monday!

• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!
• Government Loans (FHA / VA) are in the high 4’s and low 5’s.
• Conventional Loans up to $726,200.00 are in the high 5’s and low 6’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the low 6’s
• Jumbo loans above $1,089,300 are in the low 6’s
• 5/1, 7/1, 10/1 Arms are in the high 4’s and low 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 mid to high 6’s- 620 credit score min right now!
• 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!

Sincerely,