I hope you are having a great week so far, and I hope you had a great Easter or Passover. We had a lovely Easter Brunch in Hollywood, and then Monday hit, and we broke family tradition. Yup, everyone was out of Cadbury mini eggs yesterday, and I did not get the usual 20 bags for the family and office. Oh, and then I had to pay taxes to add salt to the wounds. LOL!
I was working on a cross-qualification last night per the request of one of my friends/agents. I looked over the file, and I went back and forth with the lender on the other end, licensed since last year. I looked over the DU, and he said it was one-year findings with 5% down. Nope, the findings showed we needed two years of taxes, but he thought he could wave a magic wand and make people miss it? I explained that I need to see the 2nd year of taxes, and I have concerns that the transcripts will not be back in 30 days since the buyers just filed. He argued that what he had was enough, and I didn’t know everything. I let him know that we are moving on to the next buyer. This AM, I received the apology with a 10% down Loan Prospector attached. It shows we only need 1 year of taxes, but he has a 3.875% rate (the rate will be around 5.5 with the client’s low credit score). They are short on assets (only about $35,000.00 short, LOL), and the client will likely have to buy 2 points to get a rate in the 5’s! Then I need to see proof that the buyer has been in business for five years. Otherwise, I need the two years of tax returns, and we need the tax transcripts from the IRS!
I don’t understand this lack of professionalism! It is infuriating that people don’t care enough to do their job initially and follow through. Yeah, we all make mistakes, but this guy is trying to slide stuff by and then hope it works? Maybe the underwriter misses it, or perhaps there is some fraud in the future? The file will likely not qualify for one-year findings once the correct rate is there because the debt to income ratios will be over 43% which is usually the threshold for 1-year findings on 10% down loans. I can’t wait for him to send me the findings again, and then the agent can let him know we went with the next buyer.
Interest rates are on another upswing. Inflation is still in the news, and rates will continue to rise until that goes away!
30-year Government Loans (FHA / VA) are in the mid to high 4’s
Conventional Loans up to $647,200.00 – High 4’s low 5’s
High Balance Loans $647,201.00-$ 970,800.00 are in the high 4’s to low 5’s +
Jumbo loans above $970,801 are in the high 4’s +. We can mid 5’s with as little as 10% down. We can do 1-year findings on these too!
5/1, 7/1, 10/1 Arms are in the low 4’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 low 5’s.
0 down loans are in the 5’s – 620 credit score min right now! Mid 5’s, for the most part, up to $670,000.00 Price.
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 5.49 – 6.49% 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 is 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!