Navigating Contingent Offers and the Power of Flex Bridge Loans

Over the past couple of months, we’ve noticed a growing trend: an increasing number of contingent offers are being accepted in the real estate market. While this presents some challenges, none are insurmountable with the proper support. One recurring hurdle we’ve observed is the earnest money deposit, which can often trip up buyers. That’s where we step in to help!

Let’s consider a typical scenario: a client is selling their condo for $600,000, with a remaining mortgage of $400,000. They’re also purchasing a new house for $950,000, requiring a 2% earnest money deposit of $19,000. If they don’t have that amount readily available in their bank account, and may not be able to borrow it from family or tap into a 401(k), we’ve got a solution: our Flex Bridge Loan. This innovative loan enables them to extract equity from their current property to cover the earnest money and additional expenses.

What Else Can the Flex Bridge Loan Cover?

The Flex Bridge Loan isn’t just for earnest money - it’s a versatile tool to ease the transition. Here are some other uses:

• Boosting Credit Scores: Pay off a few bills to improve their credit, making them eligible for better loan terms.
• Home Inspection and Appraisals: Cover the costs of these essential steps to keep the buying process on track.
• Repairs on the Departing Residence: Fix up the current property to maximize its sale price before listing.

We take it a step further by offering the Flex Bridge Loan before the property is even listed. This gives clients cash upfront to make repairs, paint, or update flooring, thereby enhancing the home’s appeal and speeding up the sale process. Once the property sells, they can transition to their regular mortgage, and we’re here to guide them every step of the way.

We’re committed to providing flexible solutions alongside traditional loans, ensuring our clients navigate contingent offers and home transitions with confidence. Have questions or need help? Reach out as we’re here for you!

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

📞 Direct Line: 661-291-2222

📞 Office: 661-260-2970 ext. 2222

📧 Email: Mike@AugustaFinancial.com

But wait, there’s more…

Interest Rates

We had a great day in the Bond market yesterday, and we gave it all back today! Momentum has now gone to the bad side, but we have the rest of the day and the rest of our lives to recover. Let’s hope it is soon!

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 low to mid 6s.
• High Balance Loans from $806,501 to $1,209,750 are also in the 6’s and 7’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:**   

Cornerstone –  It looks like it will be coming off the Fannie List shortly!

American Beauty Village East – Off the naughty list!

Canyon Country AKA Canyon Gardens - new insurance provided -

American Beauty GARDEN – YAY!

American Beauty Classics – Terrific

**Bad News for Condos***

Parklane Condos – Simi Valley CA  – Insurance is adequate!

Park Northridge HOA  – 19533 Rinaldi – Critical repairs and deferred maintenance

MARIPOSA – Another setback! Now, they have 19% delinquencies to be added to an already too-high deductible on their insurance.

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!