September 8, 2022

I love when new loan programs come out, I can share the info with you, and today we have a good one. We get the occasional client looking to buy a primary residence or second home, and they do not have income, bank statements, or a business and do not fit into our regular loan products.

Well, we now have a solution. This new product, called the Community Mortgage, does not require income documentation. You only need a 640 credit score, you do not need to state your income, there is no debt to income ratios because there is no stated income, we only need to season assets for 30 days, and you can buy with just 25% down up to a $3,000,000.00 loan amount. You will need 12 months of reserves, and the rates are pretty good.

So who would benefit from such a loan? Owners of a cash business, drug dealers, a buyer who just became self-employed, a buyer with inconsistent income, someone who is in the process of a divorce and is not showing income, a recent immigrant, someone with a side business that doesn't show income, and so many more.

I am not saying to ask every drug dealer if they want to buy, but we know that many people out there deal in cash or have circumstances that will not allow them to do other types of loans. Stated income loans require 35% down, and many people don’t want to state their income for various reasons. If you are getting a divorce, you definitely don’t want to state your income. Bank statements are still an alternative, but I do love this program as it hits on some hot buttons we haven’t been able to touch in a while!

Interest rates start at about 6.99% on this product, but they vary depending on the down payment and credit score.

Rates got hammered on Tuesday, and then they got better yesterday and gained back about half the loss. Today, we are pretty flat, but we are on the bad side of flat. Rates are definitely on the upswing again, and let’s hope this is temporary!

• 30-year Government Loans (FHA / VA) are in the low 5’s.
• Conventional Loans up to $647,200.00 - low to mid 5’s.
• High Balance Loans $647,201.00-$ 970,800.00 are in the mid 5’s to low 6’s
• Jumbo loans above $970,801 are in the high low, to mid 5’s
• 5/1, 7/1, 10/1 Arms are in the low 4’s to low 5’s for over $647,201. Under that, don’t bother right now!
• Bank statement loans - They are available with 10% down again! 6’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 6’s.
• 0 down loans are in the 5’s – 620 credit score min right now! Mid 6’s, for the most part, up to $670,000.00.
• 0 down Jumbo to $975,000.00 – 680 credit score – call for a quote
• 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 will be around all weekend 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!