LOW INTEREST RATE?

Today I received a call from a client whose loan I refinanced about a year ago. The question was simple: “Is it time to refinance again?”

I’ve been hearing the same thing from many people—that interest rates are already in the 5% range. I wish that were true. As I told my client, from your mouth to the decision-makers’ ears—but we’re not there yet.

That said, I have a sense—not a guarantee, not a prediction—that we may see some improvement as we move into May. Why May? I can’t point to a specific reason. Sometimes experience and intuition just guide you.

Right now, rates are still fluctuating, generally in the 6% range depending on several factors:

• Loan amount
• Credit score
• Type of property
• Overall financial profile

Despite that, activity remains strong. This month alone, I’m on track to close 12 loans. People are still buying, refinancing, and moving forward—because the opportunities are still there.

Would it be great to see rates in the 5s? Absolutely. And when that happens, we’ll all be very busy.

My simple advice: If you want rates to come down—for yourself, your family, or your clients—put that intention out there. Ask for what you want. As the saying goes: Ask, and it shall be given to you.

And if you have questions about your specific situation, I’m always here to help.

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

HAPPY BIRTHDAY 

Birthdays… we celebrate them with family, friends, a cake, and candles. But in reality, a birthday is also a reminder—that we are moving forward in age. Some call it getting older. And yes… it reminds us that there may be less years ahead than behind.

But a birthday is never a sad moment—especially when it’s someone you love. Today, Friday the 17th… is my wife’s birthday. We’ve been married for over 58 years. I was 20 when we got married. And since then, … every single day has been a celebration.

We worked together. We lived together. We built a life—together. Yes, we will go to our favorite restaurant. Yes, there will be a gift. But the real gift… is the love we carried through the years.

This year, I wanted to give her something special… something from my heart. So, I created a book. It’s called “This Is a Wonderful Life.” It’s my gift to her. And maybe… if she allows me… I will share it with you as well.

So—happy birthday, my love. And thank you… for being part of my life. And to all of you—thank you for celebrating her birthday with me.

Three images that you can see here are from the book I’ve created as a gift.

Enjoy and share…

42 PETALS OF WISDOM

I’m excited to share that my new book, 42 Petals of Wisdom, is now available on Amazon.

This book wasn’t something I originally planned to create. It began when my daughter organized an exhibit of my black-and-white flower photography—images that carry a unique depth and quiet beauty. Initially, I thought of putting together a small catalog to accompany the exhibit.

But as I started selecting the photos, something unexpected happened—I couldn’t stop. I found myself deeply moved by the images. Yes, they are my work, but they revealed a beauty that felt beyond me.

That’s when the idea for this book was born.

Inspired by meaningful comments and reflections shared with me over time, I paired these images with words of wisdom, someone coined it “Mannyisms “ And just like that, the title came naturally: 42 Petals of Wisdom.

There’s something special about holding beauty in your hands. It creates a feeling that’s hard to describe—but easy to recognize when you experience it.

That’s exactly what I hope this book will give you.

If you already have my books, I invite you to add this one to your collection. And if this is your first, I promise—you’ll truly enjoy the journey. And if it speaks to you… share it with a friend.

Three images you can see above are from the book.

Enjoy!

EARNED EQUITY PROGRAM (EEP):
A NEW PATH TO HOMEOWNERSHIP

Struggling to qualify for a traditional mortgage? You may still be able to own a home and start building equity today.

WHAT IS THE EARNED EQUITY PROGRAM?

The Earned Equity Program (EEP) is designed to help individuals and families transition from renting to homeownership—even if they don’t meet traditional lending requirements.

A unique structure allows you to live in the home, build equity, and work toward full ownership over time.

KEY BENEFITS

• Low Down Payment – Starting at just 3.5%
• Flexible Credit – Scores as low as 580+
• Higher Approval Ratios – Debt-to-income up to 60%
• Self-Employed Friendly – Qualify with 3 months bank statements
• Build Equity Now – Start benefiting from homeownership immediately

WHO THIS HELPS

• First-time homebuyers
• Self-employed individuals
• Buyers with credit challenges
• Individuals with non-traditional income
• Those facing immigration-related hurdles

HOW IT WORKS

A specialized ownership structure allows you to move into a home now while building equity and positioning yourself to refinance into a traditional mortgage in the future.

Want to learn more? Click this link to view a presentation by Norma Somers, Wholesale Mortgage Account Executive at Travisa Financial.

LET’S TALK

After 42 years in the mortgage business, I can tell you—opportunities like this are rare. If you’ve been told “no” before, this may be your path forward.

For any questions don’t hesitate to call, text or email me.

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

EVERY CLIENT HAS THEIR OWN
UNIQUE SOLUTION

A few days ago, I received a very interesting phone call from a real estate agent I’ve known for many, many years. He opened with a simple question: “Do you do DSCR loans?” That immediately caught my attention—because we do all types of loans. So, I asked him a few more questions to understand the situation. It turns out he was thinking about buying a four-unit property for his daughter. In his mind, a DSCR loan was the solution. But as we dug deeper, the picture changed.

His daughter is employed, has income, and can actually qualify for a traditional loan, and intends to live in one of the units. In this case, she could potentially purchase the property with as little as 10% down—and likely get better terms than a DSCR loan.

So, here’s the key point: Not every situation requires a DSCR loan—sometimes a conventional approach is the better solution.

Now, DSCR loans absolutely have their place. For example, I have a client who recently inherited a property from his mother and is buying out his brother. In that case, a DSCR loan makes perfect sense—because qualification is based on the income generated by the property, not personal income.

That’s what DSCR stands for: Debt Service Coverage Ratio—a calculation based on the property’s income versus its expenses. And there are different ways to structure it depending on the scenario. So, the lesson is simple: Every situation has a solution—but the right solution depends on understanding the full picture.

One of my lenders shared this flyer with me as an illustration of my expertise. In other words, if you ever have questions, call me. I promise — I’ll help you find the right answer. 

Warm regards,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

CONSTRUCTION LENDING:
EXPERIENCE COUNTS

With over 40 years in the mortgage business, we’ve developed strong expertise in construction lending—one of the more complex areas of financing.

There are several common types:

• Ground-up construction – building a home on owned or newly acquired land
• Tear-down / rebuild – demolishing an existing structure and building new
• Home improvement – renovating or expanding a property
• Completion financing – funding to finish a project already underway

Completion financing can be especially challenging. Many lenders are cautious due to risks like mechanics liens, where unpaid contractors can place liens that may take priority over the lender.

As a result, these loans often require specialized title coverage, and not all lenders will participate.

The key takeaway: we know how to navigate these challenges and have identified solutions — even in complex situations. You are kindly invited to click this link to my weekly YouTube video.

Warm regards,

Manny Kagan,
President,
Pacific Bay Financial Corporation
Your professional mortgage broker since 1983

DON’T GET PINCHED ON MARCH 17!

This past St. Patrick’s Day, my assistant Natasha came into the office and—without warning—gave me a gentle pinch. The reason? I wasn’t wearing green.

As the tradition goes, mischievous little “leprechauns” are said to pinch anyone they can see on this day. Wearing green makes you invisible to them—at least, that’s the fun legend.

What many people don’t realize is that green wasn’t always the color of St. Patrick’s Day. In fact, the original color associated with Saint Patrick was blue. The shift to green only became popular in the 19th century, likely inspired by Ireland’s lush landscape and the shamrock.

So technically, even a small touch of green—a tie, a scarf, or a little detail—might just save you from that unexpected pinch… or at least give you a good argument!

Now that the day has passed, I hope you had a wonderful time celebrating. And if you have Irish roots—or simply the spirit—you may have enjoyed it fully at one of those lively Irish pubs.

Until next year—stay lucky, stay joyful, and don’t forget your green, like people I encountered in San Francisco.