FHA Loan Nevada EXPLAINED...Great Option and Here's Why
FHA loan are great home loans and they are the most commonly used loan program for 1st home home buyers. The FHA loan is much more flexible when it comes to the borrower that don’t have the best credit. The FHA loan really looks at a loan from a common sense perspective in the sense of a low credit score. While a bankruptcy or other major financial event does not automatically disqualify you as its based off of when exactly the event occurred it is highly suggested that you review your credit report with a qualified Las Vegas mortgage broker first. Also a qualified Las Vegas mortgage broker can help you with the loan limits set for a FHA loan in Clark County.
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FHA Loans: Common Myths and Facts
As in many cases there is several items we DO NOT NEED YOU to payoff to qualify for a home loan. Common items that borrower’s think they have to pay off and they do not are:
- Vehicles that have been repossessed and the unpaid portion of the balance is being reported to the credit report.
- Credit cards that went late and never got paid off.
- Pay day loans that were not paid.
- Personal loans that were not paid.
- Medical debt that was not paid in any amount, including medical bills over six figures.
While applying for an FHA loan is more flexible than many other loan types it will still require mortgage insurance even if your down payment is a larger percentage of the total purchase price than 3.5% of the property value. Mortgage insurance is required on conventional loans as well unless there is a down payment of 20% or more made towards the purchase price of the home. However your credit score does not determine the amount of the monthly mortgagee insurance like a conventional loan does. You can be a 500 credit score or you can be a 800 credit score borrower, and the monthly mortgage insurance will be the same on a FHA loan. This is why its recommend if you have under a 700 credit score, its best to go FHA instead going convectional as the conventional counterpart’s mortgage insurance will start to sky rocket under 700.
As mentioned above a FHA loan can be incredibly flexible for buyers as it allows for credit issues than the conventional counterpart financing don’t allow for. Here is are the reasons why you would seek to purchase a home using a FHA loan.
- Credit score is under 700.
- Need lower monthly mortgage insurance costs to have a lower monthly payment.
- Need a higher monthly allowance on the debt to income ratio to qualify for a higher purchase price on a home.
- Purchasing a property at or under $355,000
- Looking for a 1st time buyer program that only requires 3.5% down.
- Have past credit issues that are still on your credit report.
- You are a first time borrower without the most established credit report.
- Had a recent bankruptcy that has seasoned for 2 years or more.
- Had a recent foreclosure that has seasoned for 4 years or more.
- Had a recent short sale that has seasoned for 3 years or more.
- Currently in the middle of a chapter 13 bankruptcy and wanting to purchase a home.
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FHA Loan Requirements
Applying for an FHA loan is practical and requires certain documentation very similar to other loan types, as there are specific requirements for being able to obtain the loan like (proof of income, W2s, Bank Statements ect.) as well as possibly needing to clear up any other outstanding debts. Your debt-to-income ratio must be within a certain range, and a minimum of two years of steady employment with verifiable check stubs or W-2’s are required.
Minimum credit scores may be higher for certain lenders but many will accept a credit score of 580 and above. If you have a 10% down payment you may qualify for an FHA loan Las Vegas based even with a credit score as low as 550. While a bankruptcy does not automatically disqualify you as its based off of when exactly the event occurred it is highly suggested that all credit accounts be paid on time for at least 12 months prior to applying for an FHA loan. The lender will need to verify how you obtained your down payment, and the home you purchase cannot exceed the price limits set for an FHA loan in Clark County.
While applying for an FHA loan is more flexible than many other loan types it will still require mortgage insurance even if your down payment is a larger percentage of the total purchase price than 3.5% of the property value. Mortgage insurance is required on conventional loans as well unless there is a downpayment of 20% or more made towards the purchase price of the home.
Call now or submit an application below and let’s get started on finding funding that works with your needs so you can start looking for your new home.
FHA LOAN LAS VEGAS...
EASIER THAN YOU MAY THINK
FHA Loan in Las Vegas: More Info
Qualifying for a Federal Housing Authority or most commonly called an FHA loan, is now easier in Nevada since guidelines and restrictions are geared towards making home ownership accessible to more people. A Las Vegas FHA Mortgage, is more lenient in the approval process, credit score and downpayment and its standards help insure the property condition itself meets minimum standards. FHA Loans allows a low down payment of 3.5% and a baseline credit score of 550.
Current FHA Mortgage Rates posted by Las Vegas lenders are highly competitive. This makes being granted a mortgage even more achievable for many homebuyers. The mortgage total that can be borrowed is set by each county. With FHA loan limits in Clark County NV capping the allowable loan value at $345,000 for a single-family dwelling. The advantage of a low interest FHA loan is really noticed when you are looking at multiplex property, as you can receive an FHA loan for a duplex, FHA four-plex, or other configurations as long as the property itself qualifies by FHA standards and you plan to live in part of the property as a primary residence.
A big advantage for FHA loans in Las Vegas are the guidelines the property is required to meet in order to qualify for an FHA loan in Las Vegas. These include inspections that protect the buyer from basic issues like insect damage, leaks, and major component problems, such as a non-working HVAC system, missing flooring, earthquake straps on the water heater and self closing fire doors.
PIF Lending can match you up with top FHA lenders in the area who will issue loans on local properties at competitive interest rates. Call us or send in the contact form so we can set up a consultation with you about your desire to purchase a property through an FHA loan. We can also assist with an FHA streamline refinance Las Vegas mortgage program, so give us a call and let’s start working on your FHA Home Mortgage.