October 4, 2022

We have seen a few clients lately buying a second property and wanting to use their VA without selling it. They have a VA loan already. They can do this most of the time, but they may have to put money down on the new purchase as they may not have enough eligibility to buy a second home using their VA without selling or refinancing their first home.

We have also seen many VA buyers who want to sell their house but want to buy a new one using their VA, and we can’t close on the new one until their eligibility is restored. So we either have to delay the closing of the purchase 24-48 hours after the VA Loan is paid off or if they want to buy before they sell, we can pay their departing residence off with a Bridge Loan. They can purchase the new house with no money down using their eligibility now that the other VA loan is paid off!

When you have a Veteran buying with a Non-Veteran, they will need to put 12.5% down on the property they are purchasing. The veteran must qualify for at least 50% of the mortgage in these scenarios.

A condo always needs to be approved by VA whether the property is attached or detached! VA recently killed their approval with Mariposa in SCV when they found out about the litigation.

I think that is enough on VA pointers for today!

So rates got better yesterday and today! Shhh! Let’s keep it quiet and not scare them. Rates are at their lowest levels since September 22. UGH! We are heading in the right direction and are starting to see some signs of inflation possibly going away. I am hearing that the ports of LA have cleared up, which means the supply chain issues are starting to become a thing of the past here in Los Angeles, and things are slowly clearing up around the rest of the country. No more supply chain issues is good news for inflation.

• 30-year Government Loans (FHA / VA) is in the high 5’s and low 6’s.
• Conventional Loans up to $715,000.00 - low to mid 6’s
• High Balance Loans $715,001.00-$ 1,072,500.00 are in the mid to high 6’s
• Jumbo loans above $1,072,500 are in the low to mid 6’s
• 5/1, 7/1, 10/1 Arms are in the mid to high 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 high 7’s - low 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 $735,000.00.
• 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 7.99% 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 will be around all week if you have any questions or if someone 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!