Do your Homework – Condo Info too!

Happy Friday. We’re seeing some positive shifts in the insurance market, but challenges persist. Let’s dive into what’s happening and how we can stay ahead of the curve.

We’re starting to notice more non-warrantable condos are getting better insurance, and some are coming off the naughty list, and transitioning back to warrantable status, which is encouraging. One property is on the cusp of approval, and with most units in Friendly Village now qualified on, we’re moving closer to a breakthrough. However, we’re not out of the woods yet. Yesterday, I reviewed the insurance for West Creek, and it’s been renewed with the same issues we’ve faced before - suggesting another year of non-warrantable status there.

A recent experience underscores the importance of diligence. I spoke with an agent about a cross-qualification for a non-warrantable condo. They assured me the buyer’s lender was experienced with these loans. I said, “Great, have them call me.” No response came, so I contacted the listing agent, who connected me with the lender. To their credit, the lender was honest: they’d never successfully closed a loan with inadequate insurance and admitted it’d be a waste of time. I agreed and shared that we handle such deals internally. We’re now awaiting the buyer’s paperwork, but the realtor’s initial misrepresentation was frustrating. Thankfully, the lender’s honesty saved us a headache - usually, it’s lenders who overpromise, only for us to learn 15 days later they’re clueless about starting the process.

This mirrors another recent case. A few weeks ago, a lender claimed they could handle a bridge loan but attempted a home equity line of credit on a listed property during escrow! The underwriter caught it and killed the line. The lender then turned to me, asking for a bridge loan. I’d initially spoken with the buyer, who opted for a no-fee HELOC with lower fees and planned a quick sale. That plan backfired! I adjusted my bridge loan fees upward, and we’re now closing both the bridge and purchase loans next week. This market demands thoroughness - cutting corners to chase business just doesn’t work.

The lesson? Be diligent with cross-qualifications. You’re never bothering me by checking in or connecting me with another lender - you’re protecting your business, and I’m all about that. We’re a team, and your success brings me joy, even if we don’t get paid for every file we discuss. I’m happy to give support, hoping for future collaboration or even just a thank-you. With Father’s Day weekend upon us, this feels like a dad’s role - supporting and guiding. Moms do even more, but dads are there, too - Happy Father’s Day to all the fantastic dads!

Let’s keep pushing forward with care and collaboration. Reach out anytime!

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 got better on Wednesday and Thursday, but the bombing in Iran started last night, and therefore, rates are worse today than yesterday but better than a week ago!

Loan Programs

• We do loans on Non-warrantable condos!
• We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans.
• We provide loans in all 50 states, so call me with anything you need.
• Government loans (FHA/VA/USDA) are in the high 5’s and low 6’s.
• Conventional loans up to $806,500 are in the mid 6s.
• High Balance Loans from $806,501 to $1,209,750 are also in the 6’s.
• Jumbo loans above $1,209,750 are in the 6’s and 7’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:**   

Friendly Village: All condos are good to go except #5! So 12 out of 13 is not a bad number! Repairs have been made, and I assume #5 is not far behind!

**Bad News for Condos***

Parklane Condos – Simi Valley CA  – Insurance is adequate!

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!