July 21, 2022

I hope you are having a wonderful week and that life is treating you well.

We are working on a couple of loans for some clients who are making additions to their houses and/or adding Accessory Dwelling units, so I thought I would share as it could be a good tool for your clients. So here is how it works.

If you don’t have a lot of home equity and want to make improvements, then we can get you a construction refinance loan. Say you want to add 500 square feet to your house and add an ADU for extra income. We will need a complete set of plans approved by the city or county, and we can get you a loan for 75% of the after-repaired value. The appraiser will have a site visit and appraise the property based on the plans, and we will be able to get you approved pretty quickly and have money to you in stages within 25 days. This loan would be a first mortgage that would pay off your current mortgage or mortgages. Once you complete the project, we will then be able to get you a take-out refinance at market rates, and you will have your beautiful new home.

We can get an Equity line of credit, a second mortgage, or a refinance loan if you have enough equity. Those are pretty standard, but a construction loan allows you to go above a property’s current value to improve your home and increase the value of your home.

Interest rates improved slightly over the past couple of days. The European Central Bank increased its interest rates to 0% from negative .50%. The unemployment rate has risen again and is at its highest since November. All this spells a slight decrease in interest rates for now.
30-year Government Loans (FHA / VA) are in the highs 4’s and low 5’s
Conventional Loans up to $647,200.00 – Mid to high 5’s.
High Balance Loans $647,201.00-$ 970,800.00 are in the mid to high 5’s
Jumbo loans above $970,801 are in the mid to high 5’s
5/1, 7/1, 10/1 Arms are in the 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 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!