March 30th, 2023

We sat in a meeting on the California Dream for all, and below are some key bullet points that we need to be concerned with on this program! For those of you living under a rock, this program allows a buyer to buy with no down, but the state will come in with 20% as your partner and take 20% when you leave or refinance the program.

• We will be following DU and LP findings with very few overlays - not sure what overlays they have yet, but we will know someday! We are working with the State, LOL!
• 660 mid credit score for low-income, and 680 credit score for moderate-income buyers - FHA Has no minimum, and we can get most buyers done with a 580 score. We have been able to get 500 credit scores done with FHA in the past!
• Max 45% Debt to income ratio if your credit score is under 700. If your credit score is 700 or above, you can reach a 50% DTI. FHA goes 47/56, but your 50% DTI here will likely qualify for more than FHA, as the state is picking up the tab for the 20%.
• No self-reporting credit - We get a lot of buyers that report their utilities or rent on their credit to establish a credit score. Self-reported credit is unacceptable on this program, and we must have those items taken off and rerun the credit.
• 12-month rental rating - OK, but if you live with a parent? Gotta find that out!
• We can consider your base income if you qualify on base income and go over with OT or Bonus. We can also exclude a spouse and or spouse’s income to keep you under the income limits!
• 2nd mortgage is NEVER FORGIVABLE! You will owe this even if the property value declines.
• Funds are reserved once you find a property and register the loan.
• Remember that there are limited funds, and only about 2200 people will get this loan this year! California closes 20,000 +/- houses every month!

Interest rates are flat this week. Banks are not buying bonds and Mortgage Backed Securities like normal as they try to keep liquidity which is not helping interest rates.

• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!
• Government Loans (FHA / VA) are in the mid to high 5’s.
• Conventional Loans up to $726,200.00 are in the low to mid 6’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the mid to high 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 and 6’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 6.99%-7.49% with limited fees – But they get you where you need to go!
• 0 down California Dream For All – Equity share with the State of CA!

Interest rates are subject to change without notice! Above are LA County Loan Limits.

I am around all weekend if you have any questions or if you need me to help get someone qualified immediately! My cell is always on at 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!