May 20, 2022

I hope you are doing well, and it was great seeing so many of you at the State of the Union yesterday! Neal Weichel nailed it and taught me so many things! Thank you if you were one of the 50,000 (that number may be a slight exaggeration by about 49,700) people in attendance!

Quite a few people have asked us a few things after the meeting, and here are some of the questions:
I want the numbers you spoke about!
Housing affordability is near record lows.
Rents are up 16% nationwide, no rent control on SFR’s
37% of all houses are Free and clear of Loans! RATES DON’T MATTER to those people!
Interest rates averaged 6.292% from 2000 to 2009, leading up to the Mortgage meltdown and our last recession – Our rates are still better than that, and the market did well at that time!
Interest rates averaged 4.092% from 2010 to 2019 from the Mortgage Meltdown to the Pandemic.
Crash of the Real Estate market? This is nothing like 2008!
In 2008, nearly 40% of all mortgages were Adjustable. Today, that number is less than 1%.
In 2008, 16% of the homes were at risk of a mortgage default, and today, it is only 2.3%.
Lending standards today are much higher than in 2008.
There are minimal 100% financing options today. In 2008 we had stated everything.
Bank statement loans are now 10% down with a 680 score today. In 2008 you could do 0 down with a 600 credit score.
Stated income today is 30% down with a 680 score. In 2008 you could do a stated loan with a 0 down 640 scores.
Interest-only loans 20% today vs. 0 down in 2008.
Negative Amortization loans don’t exist now, and they were a cheap option in 2008 for people who just wanted a low payment.
The rental vacancy was over 10% in 2008, and today we are below 6%.
The big want is for the two flyers that Neal mentioned
Interest Rates vs. Buying power – This shows what a particular payment would have gotten you on a price from the start of the year on. This is great to illustrate your sellers and buyers. On the buyer’s side, it shows where they could go next month at this pace.
How rising interest rates affect your purchasing power – Shows what the payments are at different interest rate levels so people can get an idea of what those payments were just a few months ago vs. today. This could help you with your sellers wanting top dollar for their listings.
Please let us know if you want us to brand these for you!

Interest rates had a couple of good days in a row! Halleluiah! We are not in the 3’s yet, but we are in the 4’s again on some products.
30-year Government Loans (FHA / VA) are in the 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 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 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 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!