100% FINANCING WITH NEVADA BOND PROGRAM - FAST FACTS

First time homebuyers may not be aware that there is still 100% financing still available for well-qualified applicants, through the Nevada Housing Division’s Down Payment and Closing Cost Loan Program. The NHD offers the program to provide homebuyers under its First Time Homebuyer Program with down payment and closing cost assistance. This statewide initiative offered in every county in the state is one of the only 100% financing options left.

One of our preferred lenders, Aaron Gordon at Bank of America Home Loans, has provided us the following information:

Please bear in mind that this is a loan and a second mortgage - not a gift - which can provide up to $10,000 for down payment and closing costs.

The interest rate on a 30 year bond loan is 6.2000% today. As of 5/18, it’s 4.750% on FHA when you don’t use the bond.

The second mortgage of 3.5% to cover your down payment comes with an 8.20% interest rate and is a 20 year loan.

When is this good? If you have no other way to get the 3.5% down payment on an FHA loan.

On a $165,000 purchase, the Bond loan will cost the borrower an extra $150 - $175/mo. It makes a lot more financial sense to try and get the 3.5% or $7,000 down on this loan, as it will pay for itself within three years.

EXAMPLE:
Scenario 1
$165,000 sales price
3.5% REGULAR DOWN PAYMENT – 4.75% RATE
$845.00/month

VS.

Scenario 2
$165,000 sale price
0% DOWN PAYMENT – 6.20%
$992 + $49 for 2nd = $1041/month

This loan is not available for everyone and is based on qualifying guidelines. Although there are some strict eligibility requirements, this program may work for many first-time homeowners.

There are limited lenders in Nevada; Bank of America Home Loans is the main servicer.


Qualification Guidelines for the Nevada Bond Program
A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years. So even if you owned a home a few years back, if it’s not in the last three you may still qualify.

If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership. Please contact Aaron if you think the home may be in a targeted area. These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.

Total gross household income must fall within the Maximum Income Limits. In Clark County, if you have a 1-2 person household, income cannot exceed $78,480. If you have a 3 person or more household, it cannot exceed $91,560.

In Washoe County it can be a bit higher. In Elko County a bit lower. See the website for details at http://nvhousing.state.nv.us then click “NHD – Down Payment Assistance Program”.

The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it's located.

Those maximums currently look like this:

• Clark: $349,515
• Nye: $283,981

Keep in mind: on a $349,515 sales price, the 3.5% down payment requirement would be $12,233 plus closing costs. Therefore, the $10,000 max bond help won’t quite cover that. Keep it under $300,000 if you cannot come up with anything.

Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, or Fannie Mae, as applicable. This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property. 401K is exempt, which is great news!!

You will also be required to successfully complete a First Time Home Buyer Education Course in person.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment.

However, due to historic low interest rates, they will want to exhaust all gift possibilities first.

LAS VEGAS SHOWS HEALTHY SIGNS OF RECOVERY

In a recent report from the Greater Las Vegas Association of Realtors through an article published in the Las Vegas Review Journal, Las Vegas’ home sales is continuing its upward trend for 13 consecutive months, although the trend in falling home prices continued in April.

As reported in the RJ:

“Realtors sold 3,198 single-family homes in April, a 78.3 percent increase from the same month a year ago. Overall, sales have more than doubled for the first four months of the year.

However, the median price dropped 39.9 percent to $141,720 as bank-owned properties dominate the market, accounting for about 80 percent of all sales and driving prices down.

The inventory of homes for sale, which peaked above 24,000 in 2007, has steadily declined to 22,112 in April, down 3.6 percent from a year ago.”

You can read the full story here: http://www.lvrj.com/business/44634067.html

The increase in home sales is largely attributed to unbelievably low mortgage rates and the abundance of homes for sale on the market. This is a golden opportunity for homebuyers because the bargaining power is in their hands. But one word of caveat: in today’s market where bank-owned and foreclosed homes flood the market, you need to work with a trusted Realtor who can guide you through the myriad choices and decisions you have to make, especially when it comes to the due diligence which includes home inspections. You need to have the best qualified professionals to assist you in identifying the potential problems that may arise with distressed properties that have been neglected or is in dire need of maintenance, as these can cost the homebuyer extensively in future repairs. It can be a time-consuming process so patience is indeed a virtue.

With the continued decline in home prices, the existing market is paving the way for a more affordable Las Vegas, although it will take a little more time for normalcy to set-in. For homeowners who are considering selling their home, it will be a case of what caliber of Realtor you have. Listing agents are a dime-a-dozen, and finding someone who can actually help you sell your home is like finding a needle in a haystack.

It doesn’t matter which side of the fence you are on. The Dulcie Crawford Group can help you whether you are a first time homebuyer or a homeowner who wants to sell your property. Call us today for real sound advice – we thrive in a market like this!