Las Vegas FHA First-Time Home Buyer Guide

Many Las Vegas First-Time Home Buyers are realizing their dream of home ownership with the help of FHA mortgage programs.

The low down payment requirements, flexible credit guidelines, common sense underwriting, and low mortgage rates make an FHA mortgage loan a popular choice.

Between contract negotiations on Las Vegas short sales or bank owned properties, dealing with appraisal requirements, home inspections, and relocation logistics, purchasing a Las Vegas property for the first time can be an overwhelming experience without the right real estate and mortgage team at your side.

Even though we load this real estate blog with valuable information to help give our clients the confidence that they’re making the most educated decision, our main objective is to earn your trust through service and communication.

Please feel free to contact us directly at any time via phone, email, or online application form if you desire personal attention gaining a better understanding of some of these complex details.

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FHA First-Time Home Buyer Basics / FAQ

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What is a Mortgage?

A mortgage loan is simply an agreement with predetermined terms of re-payment between a borrower and a lender where a property is used to secure the debt.

How is mortgage money made?

Home mortgage loans are either backed by a specific lender’s deposits or funded by a group of investors through a slightly complex relationship organized by financial firms which involves Mortgage Backed Securities (MBS), Government Sponsored Enterprises (GSEs) such as Fannie Mae and Freddie Mac, or other institutions on Wall Street that buy and sell these instruments on the secondary market.

An easier explanation is that banks and investors lend money to homeowners based on their own guidelines.  To ensure their safety in the case of borrower default, most lenders will require a form of mortgage insurance depending on the amount of equity a property has compared to the loan amount (Loan-to-Value).

Is the FHA a lender?

No, The Federal Housing Administration (FHA) is a US Government agency that was created in 1934 for the purpose of stabilizing the housing market by providing adequate insurance on mortgage loans.

Basically, the FHA is a form of mortgage insurance provider with more flexible qualifying guidelines.

In order to originate and fund FHA insured mortgage loans, mortgage companies have to meet strict licensing requirements that include special FHA audits, as well as state and federal regulation.

If you can gain anything from this short history lesson, working with an FHA licensed mortgage company should make you feel a little more safe and confident in the professionals you are trusting with your mortgage transaction.

Qualifying for a Las Vegas FHA Mortgage:

To qualify for an FHA mortgage, underwriters will evaluate the following factors:

• Amount of mortgage loan amount
• Las Vegas, NV Clark County FHA lending limits
• Borrower’s income, employment and other personal documentation
• Borrower’s credit worthiness
• Borrower’s initial down payment and funds to close
• Appraisal and other property conditions

Choosing the right home:

Las Vegas First-Time Home Buyers looking to qualify for an FHA mortgage need to make sure that their real estate agent is familiar with the new FHA appraisal guidelines and other FHA property requirements.

Name two good reasons I should buy a Las Vegas home now?

Besides the fact that FHA mortgage rates and property values are very low, there is a new $8000 First-Time Home Buyer tax incentive that sweetens up the deal.

While it is certainly understandable to be cautious about the potential for future decline in property values, the low rates should make up for the difference in any short term losses.  From a negotiating perspective, sellers are more willing to play by the buyer’s rules when prices appear to be going down vs up.

Another timeline to pay attention to is that the Fed may stop purchasing Mortgage Backed Securities by November of 2009 which may have a significant impact on interest rates.

What is my next step?

Great question! It is important to present an offer to a seller once you have had the opportunity to get a full mortgage approval from your mortgage lender.

Since banks have tightened up their guidelines, it is a good idea to get your financing and approval in place so that you can be ready to take advantage of a great property deal the day it hits the market.

We work through a full financial strategy session with each of our clients before sending them out to find a new home. Just as your real estate agent’s mission is to protect your interests with regards to your property investment, your loan officer has a fiduciary responsibility to make sure you obtain an affordable mortgage loan that you can feel safe and secure paying on over time.

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Top 6 Las Vegas Mortgage Links / Articles / Questions

1. Las Vegas First-Time Home Buyer Frequently Asked Questions
2. Las Vegas Mortgage – How Much Can I Borrow?
3. What Are The Current Mortgage Interest Rates?
4. Applying For A Las Vegas Mortgage – What Documentation Do I Need?
5. How Does The Mortgage Approval and Funding Process Work?

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Raintree Mortgage (Las Vegas)

9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
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