I hope you are having a wonderful week so far, and I know that this weekend is going to be busy, so get out there and let’s get some business!!!
I thought I would get a few things off my chest before we get to the nuts and bolts of what we will discuss today!
1. Mortgage Companies are buying more leads from Equifax, Trans Union, and Experian than ever! Clients are getting BOMBARDED after we run their credit! They are getting texts, emails, and maybe people will soon be knocking on their doors! We use a fake phone number when we run credit, but some people are not that smart. Like the last lender they used online or the guy up the street who works at the bank! So, warn your clients because these vultures don’t know what they are doing!
2. A realtor friend said a lender was quoting 3.75% on a 30-year rate at a meeting! I said, no way!!! It turns out it was an FHA rate with 2+ points! These people are desperate, so be careful where your buyers go. I can only imagine a first-time buyer with good credit and solid income getting an FHA loan with 20-% down for the lower rate!
Now to the nuts and bolts:
My Mini Bridge Loan is taking off! I lent clients $14,000.00, $24,000, $29,000, and $33,500 in the past two weeks to help get their credit scores up and guess what! All of them jumped their scores from 44 points to 68 points on their middle credit scores.
Now that I have your attention!!! We can loan our clients money before selling their houses to get their credit scores up. We have a lot of clients that have built up some credit card debt, and I thought it was important to help them since they all have a ton of equity, and their payments are on time, but life has gotten expensive this year due to inflation. The cost is $0 as the goal is to sell! We give 30-60 days with no interest on the loan so our clients can consolidate their debts and get their scores up! Oh, and taking a credit score from 663-731 only saves that buyer .750% in the interest rate, and the points are 1% lower!
Interest rates got hammered on Tuesday, and they came back a little yesterday, and they are slightly better today! Let’s hope we see them continue to improve over the coming weeks!
• 30-year Government Loans (FHA / VA) are in the low to mid 4’s or high 3’s if you wanna pay a few points. LOL!
• Conventional Loans up to $647,200.00 – Mid 4 to 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 to low 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!