I hope your week is going well and I know that there is change in the air when I come home and there is Monday Night Football on instead of the Bachelor. Yup, girls are gone and we are now an all boy house!
With the pending spot approvals coming from FHA, I feel that we are going to see more and more people looking seriously at condos! FHA has not come out with their new guidelines for spot approvals yet, but here are the Fannie Mae guides and notice that we can now do limited review on investment properties with 25% down! Below is what you need on a full condo review which is an owner occupied buyer with less than 10% down, or an investment property or second home with less than 25% down.
Project must have less than 15% delinquency on HOA fees
Project must be putting at least 10% of their dues towards reserves
Project must be at least 50% Owner occupied for Investment buyers – There is no minimum requirement for owner occupied buyers!
Litigation would be looked at on a case-by-case basis – we will talk more about this below!!
Project must have ample reserves
No one entity can own more than 10% of the units in the complex (Smaller complexes under 10 units, no single entity can own more than 1 unit)
Common Areas must be completed
Please note that if a buyer is putting at least 10% down owner occupied or 25% down Investment or second home then the property will likely get a limited condo review which only requires that we ask about the litigation in a building. This means that we do not have to meet all of the other requirements above. Some of the above requirements come with slight exceptions like we do not need to see 10% going into reserves every month if the reserves are more than sufficient.
Hmmm, the investment property occupancy has long been an issue in many condo projects for investment buyers, but not anymore.
Litigation – If Litigation relates to the safety, structural soundness, habitability, or functional use of the project then the project would be ineligible for financing. So minor lawsuits that do not affect safety, structural soundness, habitability, or functional use of the property are usually good to go. They go a little deeper in the guidelines, but this is all I am giving you.
Interest rates jumped a little yesterday and they are up a bit again today. Below are rates based on a 740 Credit score and rates are subject to change without notice:
30-year fixed conventional 1st Mortgage with 25% down – 3.625% (3.671 APR). Loan amounts up to $484,350.00 = $2208.88
15-year fixed conventional 1st Mortgage with 25% – 3.125% (3.208 APR). Loan amounts up to $484,350.00 = $3374.03
5/1 ARM 1st Mortgage – 25% down – Fixed for 5 years and then becomes variable – 3.500% – (3.594 APR) Loan amounts up to $3,000,000.00 = $13,471.34
7/1 ARM 1st Mortgage – 25% Fixed for 7 years and then becomes variable – 3.625% – (3.714 APR) Loan amounts up to $3,000,000.00 = $13,681.54
10/1 ARM 1st Mortgage – 25% Fixed for 10 years and then becomes variable – 3.750% – (3.844 APR) Loan amounts up to $3,000.,000.00 = $13,893.47
30-year fixed 1st Mortgage FHA loan 3.50% down – 3.250% (4.663 APR). Loan amounts up to $484,350.00 = $2144.81 + $349.08 PMI = $2493.89
30-year fixed 1st Mortgage VA loan 0% – 3.250% (3.296 APR). Loan amounts up to $484,350.00 = $2107.92
30 Year Fixed rate 1st Mortgage Jumbo Loan 25% down – 4.250% (4.344 APR). loan amounts up to $3,000,000.00 =14,758.20
I will be in the office all week until about 8PM. My Cell number is 661-714-6258 and my office line is 661-260-2970 xt. 2222. Please call, text, email, or even send a carrier Pigeon with whatever you need. I am here to serve you and your clients with all of their financing needs. Have a great day and I hope to hear from you soon!
Mike Meena - President / Loan Professional - NMLS #241370
Real Estate Broker-CA Bureau of Real Estate
RML #01212262, NMLS #241911
Connect with us:
Augusta Financial, Inc.
25129 The Old Road, #350
Santa Clarita, CA 91381