May 2nd, 2023 – LLPA’s at a 740 Credit Score

Today we will discuss the 740 credit score category and what that does to your interest rates with the LLPA changes. I will once again touch on the LLPA fees going into effect yesterday or sometime soon as the rate sheets don’t necessarily reflect this right now!

Buyer Betsy is looking to buy a house for $750,000.00, and she is still determining how much he wants to put down! She has a 740 credit score. Below are her options based on her different credit scores and down payments, and please don’t laugh!

$750K Purchase Price - 30% down – 5.99% – $525,000.00 Loan Amount – $3144.27 + Taxes and Insurance

$750K Purchase Price - 25% down – 5.99% – $562,500.00 Loan Amount – $3368.86 + Taxes and Insurance

$750K Purchase Price - 20% down – 6.125% – $600,000.00 Loan Amount – $3645.66 + Taxes and Insurance

$750K Purchase Price - 15% down – 6.250% – $637,500.00 Loan Amount – $3925.20 + PMI $74.37 = $3999.57 + Taxes and Insurance

$750K Purchase Price - 10% down – 6.125% – $675,000.00 Loan Amount – $4101.37 + PMI $106.90 = $4208.27 + Taxes and Insurance

$750K Purchase Price - 5% down – 6.125% – $712,500.00 Loan Amount – $4329.23 + PMI $173.05 = $4502.28 + Taxes and Insurance

$750K Purchase Price - 3% down – 6.125% – $726,200.00 Loan Amount $4412.47 + PMI $211.81 = $4624.28 + Taxes and Insurance

FHA – same as last week!

$750K Purchase Price - 25% down – 5.500% – $562,500.00 Loan Amount – $3249.70 + PMI $234.38 = 3484.08 + Taxes and Insurance

$750K Purchase Price - 20% down – 5.500% – $600,000.00 Loan Amount – $3466.35 + PMI $250.00 = $3716.35 + Taxes and Insurance

$750K Purchase Price - 15% down – 5.500% – $637,500.00 Loan Amount – $3685.00 + PMI $265.63 = $3948.63 + Taxes and Insurance

$750K Purchase Price - 10% down – 5.500% – $675,000.00 Loan Amount – $3899.65 + PMI $281.12 = $4180.77 + Taxes and Insurance

$750K Purchase Price - 5% down – 5.500% – $712,500.00 Loan Amount – $4116.29 + PMI $296.88 = $4413.17 + Taxes and Insurance

$750K Purchase Price - 3.5% down – 5.500% – $723,750.00 Loan Amount – $4181.20 + PMI $331.72 = $4512.92 + Taxes and Insurance

You can see that the LLPA’s don’t move the rates as much at the higher credit scores. It is crazy that 15% and 20% down are worse than 3, 5, and 10, but I won’t judge!

Interest rates went up slightly yesterday, but they are returning nicely today! The Fed should be increasing short-term interest rates tomorrow by .250%, and hopefully, that will be the end of it!

• 12-day escrows if your buyer is pre-approved - Conventional / FHA / Jumbo / Bridge
• 0 down California Dream for all Equity Share – Postponed until 2024!
• 3/2/1 Buydowns 2/1 Buydowns and 1/0 Buydowns are available at great start rates!
• Government Loans (FHA / VA) are in the low to mid 5’s.
• Conventional Loans up to $726,200.00 are in the mid 5’s to low 6’s.
• High Balance Loans $726,201.00-$ 1,089,300.00 are in the high 5’s and low 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% 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 am 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!