For those buyers seeking to
purchase a home in the Las Vegas area, there are a number of
Las Vegas home loans available. No matter what your financial condition, there is a loan for practically everyone who is willing to diligently research their options. In addition, your real estate professional will be pleased to work with you to help you reach your goal.
FHA Loans: These loans, which are guaranteed by the Government, are more tolerant of low credit scores and also allow higher debt ratios. Consequently, a mortgage insurance premium (MIP) is required. This amount is figured into the initial loan financing along with a monthly MIP which is equal to ½% of the original loan amount - divided by 12.
There are several big advantages to obtaining an FHA Loan. One of them is that a buyer with little or no money to put down may use a down payment which is a gift from a relative. In addition, on a Conventional Loan, there are certain fees that the buyer is required to pay which - on an FHA Loan - must be paid by the seller.
The 2-1 Buy Down is a popular FHA Loan Program. How this works is that at closing, the buyer must pay points which constitutes a fee of 2.625% of the original loan amount. This ensures that the buyer pays 2% less than the market rate at closing during his first year of payments. His second year payments are 1% lower than the market rate at closing and years 3 through 30 are at the market rate at closing. Obtaining an FHA Loan allows the buyer to purchase more house based on the assumption that his income will be increasing over time
VA Loans: This type of loan is also Government guaranteed and is available only to eligible veterans. The highest debt ratios are allowed by VA Loans which is up to 44% of all combined debt. A veteran is actually allowed to purchase a home with only $1 down because the seller can pay all of the veteran's closing costs. However, what really happens is that the sales price is adjusted to cover the cost of the amount of money paid by the seller.
Another benefit of a VA Loan is that this is the only type of loan that a buyer may legally assume without obtaining permission from the existing lender.
Conventional Loans: These are loans that are not guaranteed by the Government. The main guidelines governing these loans come from Fannie Mae and Freddie Mac. Because these companies offer so many loans, the Conventional Loan usually has the most flexibility. In addition, this type of loan usually offers a slightly lower rate than the Government insured loans.
First Time Home Buyer Loans (State Money): Each year, the State of Nevada allocates money to be used for mortgages for first time home buyers which is called a State Money Loan. This type of loan typically runs ½ to ¾% lower than the current market rate and allows a first time home buyer to purchase a better house than would ordinarily be feasible. There are certain restrictions and guidelines on this type of loan that can be explained to a buyer by his real estate professional.
