Maximizing Opportunities for Union Workers/ Studio Workers in a Challenging Market For many union workers, income calculation is critical when qualifying for a home loan. The calculation is especially true for those who work a variety of jobs throughout the year, such as individuals in the entertainment industry, tradespeople, or other unionized professions. Understanding how different lenders approach income calculations can significantly affect their ability to secure financing. Fannie Mae Guidelines for Union Income Fannie Mae typically evaluates union income based on historical earnings, often focusing on the past two years of employment. They look at W-2s, year-to-date (YTD) pay stubs, and employment verification to determine a reliable average income. If a union worker’s income fluctuates due to the nature of their work, Fannie Mae might analyze patterns and trends over that period. However, significant income declines in the most recent year could pose a challenge, as Fannie Mae emphasizes stability and consistency in earnings. OK, so this makes sense, and it is a guideline we have lived by for many years! A More Flexible Approach: Averaging Income Over Multiple Years One of our preferred lenders offers a more flexible solution, which can be a game-changer for union workers. This lender allows income averaging over the years 2023, 2024, and YTD 2025 - even if income shows a significant decline in 2025 - as long as the borrower remains an active union member. This flexibility recognizes the unique nature of union work and its cyclical income patterns, especially in industries like entertainment, where 2025 started slow due to prolonged studio closures and production delays. This option could be particularly beneficial for studio workers looking to purchase a home now, as it accommodates the realities of their profession without penalizing them for temporary income dips. These applications must be dated before 3/31, or we must go back to the Fannie Mae Guidelines. By the way, the application date and the open escrow date need to coincide, so we can’t backdate a loan application on an April 15th open escrow date. Did I mention that the rates on these loans are FANNIE MAE RATES? YUP, this is a great opportunity!!! Fires, Insurance Challenges, and Legal Implications On another note, the ongoing impact of fires in our region has raised serious concerns about home insurance. More attorneys are becoming involved, and we anticipate class action lawsuits against insurance companies for underinsuring their clients. While this may eventually lead to changes in insurance practices, it could also mean additional costs for homeowners in the form of higher premiums or added policy requirements. As real estate professionals, it’s essential to keep our clients informed about these developments and let your clients who have been affected by the fires know that there is a legal option. I am not a big fan of lawsuits; class action lawsuits will take years. The attorneys are the biggest winners, but it is an option. Final Thoughts The year has started a little slower than I expected, and we really need to get the ball rolling! Expect a call with my latest idea if you send business to me regularly! This idea is free, and it should gain you long-term residual income. I can’t wait to share it, and you will love it! 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 2025 starts now!!! Please let me know if you would like to go over my latest marketing ideas! But wait, there’s more… Interest Rates The past two weeks have been solid; we need that to continue. Expecting interest rates to drop immediately will not happen, but a slow trickle down by .250 -.50 every quarter would be great! We offer 12-day escrows for pre-approved buyers - Conventional/FHA/Jumbo/Bridge loans. We provide loans in all states, so call me with anything you need. Government Loans (FHA/VA/USDA) are in the 5’s and 6s. Conventional loans up to $806,500 are in the 6s. High Balance Loans from $806,501 to $1,209,750 are also in the 6’s and low 7’s. Jumbo loans above $1,209,750 are in the 6’s and low 7’s. Bank statement loans are available with 10% down again, with larger down payments in the 7’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:** Nothing new to report. **Bad News for Condos:** Canyon Park Carriage – Litigation! Roof stuff!! – This is now a maybe as it could be pre-litigation! Waiting on the paperwork! Las Ventanas – $100,000 Insurance deductible per unit! Damn Insurance!!! Sonterra Condominiums – 15425 Sherman Way – one entity owns 61% of the condos. They are not eligible for conventional or Government financing! For all other issues involving condos, please check MikeMeena.com. I will post updates here, but all the information on the naughty list is available on my website. Just go there and click about to find our most updated list. 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! Mike Meena President | Loan Officer Click to Call or Text: (661) 714-6258 This entry has 0 replies Comments are closed.