Nevada Mortgage Overview
3 million people call Nevada home. Whether
it's because of the year-round sunny weather, low taxes, and fun environment
there are plenty of reasons to live in Nevada.
There's a lower cost of living in the
Southern part of the state where the tourists mostly visit, but the entire
state has a $267,000 median home price. Only 56 percent of the area's homes are
owner-occupied mostly due to the high tourist rates.
Are you thinking of owning a home in
Nevada? Here are your loan options.
Nevada conventional loans
You'll need great
credit and low debt ratios for the conventional loan. Most lenders require a
660 credit score and a max 36 percent debt ratio. You don't need 20 percent
down like most people think. First-time homebuyers need 3 percent down and
subsequent homebuyers need 5 percent down.
Nevada FHA loans
If you have a lower credit
score or higher debt ratio, the FHA loan is a great alternative. With a 580
credit score, you need just 3.5 percent down and a 45 - 50 percent debt ratio.
If you have a 500 - 579 credit score, you'll need 10 percent down and lenders
may be tougher on your debt ratio, but there's a chance of approval. FHA loans
require mortgage insurance for the loan's term.
Nevada VA loans
Military veterans can secure
100 percent financing from a VA lender. You need a 620 credit score and enough
income to cover the mortgage, consumer debts, and the daily cost of living.
Veteran loans don't require a down payment and don't have mortgage insurance,
but there is an upfront funding fee you pay at closing.
Nevada USDA loans
If living in rural parts of
Nevada sound more peaceful, the USDA loan may be a good option. Your household
income must be 115% or less of the area's median income and you need a 640+
credit score. If you qualify, you'll get 100 percent financing, pay low
interest rates, and low mortgage insurance for the life of the loan.
First-Time Homebuyer
Programs in Nevada
Home is Possible
The Home is Possible program is a down
payment program up to 5% of the sales price to help you buy a home. You need a
minimum 640 credit score and must qualify for one of the above-mentioned loans.
It's a 30-year term loan with a low interest rate.
Home is Possible for Heroes
Veterans have
access to the Home is
Possible for Heroes program which offers a 30-year loan at lower interest
rates. You must meet the income requirements to qualify.
Home is Possible for Teachers
Teachers can
take advantage of this HIP
program until March 31, 2021. It provides $7,500 in down payment or closing
cost assistance and is forgiven after 5 years if you are still in the home. You
must be a licensed teacher and make income below the limits.
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