June 9, 2022

I hope you are having a great day and that the heat doesn't make you too crazy!

Sourcing funds can always be a challenge when we get to the close of an escrow. Some clients are pretty straight forward, as they have all of their money for their down payment and closing costs in one account, and it has been there for a while, and things go smooth at the close. Yesterday we had a challenging one: touch and go the whole way. This client got about $400,000.00 from ten (10) different accounts and moved the money from one account to the other over the past month while we were in escrow. Moving money around is an excellent strategy if you are trying to hide stuff from an IRS auditor and confuse the crap out of them, but it's not good when you are getting a home loan.

So here is something you may not realize. Did you know that on a conventional loan, if a donor sends a check or a wire straight to escrow, we do not need to see their bank statement? We still need the gift letter with the account number matching the account from which the money is being sent. If the money goes to the borrower, we need to see a statement. The gift must be fully documented with a Bank statement and a gift letter if the loan is an FHA or VA. Fun stuff, I know!

Interest rates have been a little like baseball this week. We are currently 1-4 with 3 strikeouts. The one hit was Tuesday, it was a two-out double.
We stranded the runner and are still down about 60 runs since January 1. At least we aren't the Angels who have lost 14 straight!
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 and low 5's
Jumbo loans above $970,801 are in the high 4's and low 5's. We can do 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 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 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 weekend 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!