Summer is around the corner. Hard to imagine the year is almost half over! Needless to say, the last few months have been very volatile in all segments of everyday life from the economy to the geopolitical landscape…Even though the devastating fires are almost four months past, many clients are still attempting to figure out the next steps in their home rebuilding. The city is not making the process any easier with delays in remediation to the whole permit process. The insurance issues remain complex and convoluted. Hard to say when actual rebuilding will be moving ahead full steam.
Tariff Tension
On the political front, one word describes the pins and needles approach everyone is glued to …Tariffs!! Many people are frozen into moving forward with any major financial decision until there is greater clarity on how the tariff situation will play out. The stock market has been on a wild ride over the last 45 days. Keep the seat belt fastened!! However, this does not mean that the real estate market isn’t active. Sales at all price points continue forward with slightly longer marketing time, but prices remain firm with certain pockets fairing quite well. The relocation process of people affected by the fires has taken root in an uptick in purchases in Brentwood, Santa Monica, Marina areas, the South Bay, Coastal Orange County, and of course, the Valleys. Additionally, we have many programs for investment properties that are underwritten solely on the rental income of the property, rather than tax returns. These rates are in the high 5% range with banking relationships.
On the mortgage front, conventional rates are in the mid 6% range with jumbo mortgages slightly lower and some 7 and 10 year arms in the high 5% range. Underwriting is straight forward with qualifications being status quo. We have a wide array of no tax return programs which are designed for self-employed clients. Business bank statement programs are an excellent alternative and have many user friendly variations with high star rates in the high 6% & low 7% area. Additionally, we have many programs for investment properties that are underwritten solely on the rental income of the property—No tax returns required.
In the commercial realm, we are experiencing a significant uptick in volume with purchase activity and refinances of current loans that are maturing or rolling to market rates. Lenders can be very flexible with qualifying guidelines, especially for quality properties.
Important: We have excellent banking relationships that focus on owner user properties. These rates are in the high 5% range with banking relationships and are very user friendly. On a sidebar, reverse mortgages are becoming increasingly important for many, and due the fact there’s no pre-payment penalty, we’re structuring transactions that make excellent economic sense.
Stay tuned!
Best regards,
Gloria Shulman, Curtis Cohen, Ted Kachadorian & All of us from Centek
Centek Capital Group | gloria@centek.com | centek.com
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