January 5, 2023

VA Loans are a great way to get into a house for our Veterans! Below are a few bullet points on VA loans that may be useful to you:

• These loans are pretty lenient, and we don’t consider debt-to-income ratios when pre-approve buyers. VA looks at residual income, ensuring they have enough income to live on after their payments.
• VA charges an Upfront Mortgage Insurance Premium (UFMIP) on all buyers, and that fee varies based on the down payment and whether the Veteran has used their VA before. The UFMIP will be waived for disabled Veterans.
• There is no monthly PMI for Veterans!
• Veterans can buy with no money down and no loan limit.
• Credit score minimums are 550, but plan on your buyer paying a lot of points with that score!
• Disabled Vets also receive more love when it comes to qualifying. We have seen where the DU tells us that it doesn’t matter what the debt-to-income ratios are or what the residual income is; they still approve the buyers.
• VA Condos need VA approval whether they are attached or detached.
• A VA appraiser does VA Appraisals, and we don’t control who that will be, but they are usually pretty lenient!
• Rates on a VA Loan are usually lower than conventional rates and on par with FHA rates.

VA loans are easier than most to approve and get closed, but there is still a stigma about accepting a VA offer.

Interest rates got better Tuesday and Wednesday; today, we made up for it with higher rates. YAY? NOOO!!! Well, our bouncing ball still has air in it, but soon we will see a decline, I hope!

• Government Loans (FHA / VA) is in the 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 high 5’s and low to mid 6’s
• Jumbo loans above $1,089,300 are in the low 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 is 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!