Las Vegas Home Buying Requirements for 2011

 Las Vegas is a great place to buy a home. There are some excellent Las Vegas condos for sale, Henderson homes, for sale and just some all round good buys. If you’ve been thinking of purchasing in this area, you should talk with a Las Vegas real estate agent.

If you are using a FHA loan to purchase your Las Vegas home you should be aware of changes that have occurred for 2011. FHA is the Federal Housing Administration that insures loans made by the primary lenders like Bank of America or Wells Fargo. FHA insures the mortgage against losses that result should a borrower default. Let’s look at the new home buying requirements for 2011.

Credit Score Requirement

In 2011, the credit score requirement is one of the most important FHA loan requirements. Prior to 2011, it was mostly at the lenders discretion but this has now changed. Borrowers must now have a credit score that is a minimum of 500 to qualify for a FHA home mortgage. To qualify for the 3.5% down payment program the borrower’s credit score must be 580 or higher.

However, FHA credit score requirements are less than those of most lenders who will require you to have a credit score that is a minimum of 620 to qualify for a FHA home mortgage, and some banks such as Bank of America and Wells Fargo have recently increased theirs to 640. Expect to have to meet whatever the banks requirements are for the bank you are dealing with.

Down Payment Requirement

If you are using a FHA loan to purchase your Las Vegas home, you may be able to put as little as 3.5% down, which is also why the FHA mortgages are so popular. Seldom will it get less than this. However as we previously mentioned, your credit score must be 580 or higher to get this rate.

Debt to Income Ratio

Debt to income simply means the amount of money you earn compared to the amount of debt you have. Your gross income (amount before taxes are deducted) is used to calculate these ratios. There are two important ratios:

1. Housing Ratio (front ratio):  It lonely looks at your mortgage related debt. Your mortgage payment should not consumer more than 29% of your gross monthly income. Take the total amount of the mortgage payment (principle, taxes, interest, and insurance) and divide by your gross monthly income. If the number is greater than 29% you could have trouble qualifying for a FHA loan.

2. Back End Ratio:  This ratio includes all your debt (mortgage, car loans, credit cards, lines of credit, etc.). Take this number and divide by your gross monthly income. If the number is higher than 41% you may not qualify for your loan.

It is important to note that these debt to income ratios are not rigid. They are FHA guidelines but for buyers that are qualified in all other avenues allowances can be made. For example if you have excellent credit and a stable income you may still qualify. That said the debt ratio is a key requirement for FHA home loans.

These are exciting times to be considering purchasing a Las Vegas home with plenty of excellent buys that a Las Vegas real estate agent can help you with . Home buying requirements are getting tougher so now would be a good time to consider making that purchase. Talk to an experienced Las Vegas real estate agent today to find out more about the many Las Vegas home and Las Vegas condos that are currently on the market.

This article will guide you step by step on how to complete a short sale with your lender(s). It really is not all that complicated, you just need to be very persistent with your lender. What is a short sale? A short sale is when the sale of your property will not cover the entire mortgage(s). AKA “being upside down” in the home. This article will outline what the steps will be in doing a short sale, and the documentation required to complete one.

Instructions.Things You’ll Need:
Patience!

1.1
Contact your lender! I’m amazed at how many times I hear from a client and it’s just too late. They have buried their heads in the sand and ignored the calls from the collection department. Please do yourself a favor and at the first sign of struggle contact your lender! Ask for the Loss Mitigation or Loan Workout department and tell them about your situation.

2.2
Next you need to contact Anthony Shaw a Las Vegas Broker with Alliance Properties who specializes in Las Vegas short sales and is a Certified Short Sale and Foreclosure Specialist. We will guide you through the remaining steps.

3.3
Put the home up for sale on the MLS and begin gathering financial documents. Each lender has different requirements, but in general you will be asked for:

* 2 years past tax returns
* 2 months bank statements (including brokerage accounts – you do NOT need to include retirement accounts)
* 2 most recent pay stubs
* Current HOA statement (if applicable)
* Hardship letter documenting the reason payments can no longer be made.
* 2 Most recent mortgage statements (from all lenders)
* Financial Statement – view an example at: http://www.SacramentoStopForeclosure.com/forms/freddiemac1126.pdf

Make sure to include anything else your lender asks you for. These documents along with an offer from a buyer will complete your “package”. It is crucial that you submit a completed package to your lender at one time. If they have to chase down a document here, or a statement there, your file will get set aside. We will help you ensure that your file is ready to be submitted.

4.4
After your agent with Alliance Properties has submitted a complete package to the lender, they will be calling them 2-3 times a day, at least 3 days per week. Busy agents do not have time to sit on hold for hours to hear from a lender regarding the status of your file. The successful short sale agents have assistants and negotiators dedicated to dealing with the banks it’s the key to success. Alliance Properties has a full short sale team and negotiators to handle the task of dealing with the banks numerous demands and strict timelines.

5.5
Approval. Once you have heard this from your lender, you typically have 2-3 weeks to close escrow. Your agent should then be changing the status of your home to “Pending” on your local MLS (Multiple Listing Service). You will now proceed to your normal escrow closing procedures outlined in your purchase agreement with the buyer: inspections, disclosures, etc.

6.6
Closing. You arrive at the title company and sign paperwork to close the deal. After receiving paperwork from title, your lender releases the lien on the property subject to your written agreement with them. We will be the 1st contact regarding the approval process from the bank and after a successful negotiation we move towards getting the property closed ASAP!

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