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Stan "The Real Estate Man" Fikes and Rachel Nichols as they talk all things real estate in the Las Vegas valley. Get the latest information on the housing market from industry professionals with decades of experience!
Unknown Speaker 0:00
This is a k u and v studios original program. The content of this program does not reflect the views or opinions of 91.5 Jazz and more the University of Nevada, Las Vegas or the Board of Regents of the Nevada System of Higher Education.
Unknown Speaker 0:16
Hello to you, Stan, the real estate man. And welcome to the Las Vegas real estate room where all roads lead to a home
Unknown Speaker 0:37
Good afternoon and welcome to the show. I'm standing real estate man. I'm with Vegas Warren Realty. Let me tell you a little bit a little bit about myself. I've been a licensed realtor since 1988. My license number is 28 to eight. And that number sounds like a good lottery number two, my contact number is 702-809-2949. I'm here today with loan officer Miss Rachel Nichols. Please say hello to the audience. Miss Nichols. Hello,
Unknown Speaker 1:09
everyone. Happy Sunday.
Unknown Speaker 1:11
Thank you. Before we get started today, Miss Nichols please tell everyone about your company experience. Also your license number and contact information.
Unknown Speaker 1:23
Okay, again, my name is Rachel Nichols. I am a loan officer with fairway independent mortgage. My office is on Fort Apache here in the city right off of Russell. My phone number is 702-551-9511. That's my cell phone. I have been with fairway since 2019. I have been in mortgages since 2018. And I've been in finance since 2001.
Unknown Speaker 1:54
So that tells me you like money. I
Unknown Speaker 1:57
like I like numbers. You like numbers.
Unknown Speaker 2:00
So are you saying you do not like I'm not saying
Unknown Speaker 2:03
that? Money is good too.
Unknown Speaker 2:07
Today's show folks, we will talk about different types of real estate loans getting approved for such. Also we're talking about buying and selling real estate. So let's start today talking about different types of loans. Go ahead. Rachel, could you explain the four types of loans that are out there in the market right now? Or maybe five or six? Yeah, there's
Unknown Speaker 2:28
quite a few. So I would say the one that is most first time homebuyer friendly, is FHA. It requires a minimum downpayment of 3.5% of the purchase price. It requires a 640 credit score, I'm sorry, a 580 credit score, I'm thinking downpayment assistance options, so that's separate. But yes, five at minimum credit score. And then the debt to income required is around 55% or so which I calculate as your lender. And basically what we do to do that is we figure out how much you make in comparison to how much you pay out in expenses. So that's how we come up with that ratio. And that's, you know, it's the most friendly, you know, if you've had any issues in the past, like filing for bankruptcy or short sale, foreclosure or anything like that, the waiting periods for that are shorter, and also allows for the most in seller credit. So there's a maximum when it comes to purchasing. So this program allows up to 6% from the seller, so that can actually cover all of your closing costs and even a portion of your down payment. I'm
Unknown Speaker 3:51
gonna be actually course it goes I know as you said seller credit, because you explain to first time homebuyers what seller credit might stand for or me
Unknown Speaker 4:00
Yes, so seller credit is basically when the seller offers you a credit to purchase the home. So if you don't have enough money to qualify on your own, you can ask for seller credit, they do have to agree with it. So it's not a guarantee. But it's something that your realtor will put into the contract when they make an offer. And so it can be negotiable. Say you want to ask for 10,000 but they come back and they say 7500 Well, if that's enough to cover what you need, I would say if the market is you know feisty. Go ahead and accept and make it work.
Unknown Speaker 4:39
So that would be considered helping with the closing costs. Yes. Okay. Now what about VA How does VA loans
Unknown Speaker 4:46
work? VA is first for first time buyer is 0% down so you don't need a down payment but what you do need is closing costs. So, so similar scenario where or the seller can offer you credit to cover the closing costs and you can buy a home with very little or no money. minimum credit score for VA is 580. I know some places it says there isn't one. But most companies will require at least a minimum, my company requires at least a 580. And there's no PMI, which is the mortgage insurance that is typically required for a loan, when you are buying with less than 20%. Down. You do have to be a veteran, I should mention that
Unknown Speaker 5:38
you can run off and join the service right now. Absolutely.
Unknown Speaker 5:41
Well, yes,
Unknown Speaker 5:42
you can use your DD 214. Yes. And buy home. Yes.
Unknown Speaker 5:48
One thing I want to mention for both of these is they do have to be a primary residence, meaning you have to live in the home for at least the first 12 months. So it can't be an investment, it can't be a second home, you have to actually like move, you change your mail, you know, do other things to show that it's your primary residence. Same with your job, it has to be local. So if you're relocating out of state, from out of state, then you want to make sure you have employment lined up in the area you're looking to purchasing.
Unknown Speaker 6:19
Now what about conventional loans,
Unknown Speaker 6:22
conventional is a good one, this product, start with primary it allows if you're a first time homebuyer up to 3% down, so it's a little less than FHA. But the qualifying factors are a bit higher. For the most part, you need a higher credit score, you need at least a 620. To qualify versus the 580. You need closing costs, of course. And then the seller credit is kind of broken down depending on how much you put down. So if you put down 10% or less, you're allowed up to 3%, maximum in seller credit. If you put down 10 to 25%, then you're allowed up to 6%. And then if you put down 25% or more, then you're allowed up to 9%. So
Unknown Speaker 7:14
the more you put down on conditional alone, I sell it can add more money to your your closing costs.
Unknown Speaker 7:21
Yes, yes. So it's good for, you know, people have the phone safe to put down that much. But it's also great for 3%, you know, if you're looking to put down as little as possible, and you have enough to cover your down payment and at least a portion of your closing costs. Now,
Unknown Speaker 7:39
what's the maximum loan amount for each one of these types of loans, FHA, conventional, and VA. So
Unknown Speaker 7:47
I know they change every year. And so this was changed in January of 2020. For the, let's see here, I have this,
Unknown Speaker 8:00
and why are you doing that? Explain to the people what the protection of these different types of loan is, you know, like FHA and conventional VA, they stand for different agencies. But what does these agencies do to help the loan get through or to back the loan or protect the loan.
Unknown Speaker 8:21
So FHA stands for Federal Housing Authority, and it is bad, it's a government backed loan. Same with VA Veterans Affairs, same thing. These government backlogs same with USDA, it's a rural loan. But these loans are backed by the government, which basically means that if you default on the loan, then the government will cover the balance when you're ready when you're close to or going into foreclosure. So it protects the lender is what it comes down to. So if you're not putting down 20% to avoid the PMI, which is the mortgage insurance, FHA requires it for the life of the loan. And again, VA doesn't require it at all. But that is what it's for though. The government loan is backed by the government. Conventional the PMI again, it's it covers the loan up to 20% in equity, and so that is paid for by you typically, through the PMI. Okay,
Unknown Speaker 9:35
so that PMI you can can you get it released from the loan at a certain point in time? Yes.
Unknown Speaker 9:40
So if you get one of these loans and you have a mortgage and you're paying mortgage insurance, you can refinance or you can contact the lender and determine they can determine if your value has reached the 20% and equity needed to remove it. But if it's an F Ha, this is one caveat, if it's FHA, you actually have to refinance the loan into a conventional loan. So to get rid of the mortgage insurance,
Unknown Speaker 10:10
and then mortgage insurance could be quite substantial attached to the payment, isn't that correct? It
Unknown Speaker 10:15
is, depending on the purchase price. It can be 234 $100 a month. So that is one of the hugest benefits of refinancing a home is getting rid of the mortgage insurance.
Unknown Speaker 10:30
Now, only mortgage insurance cannot be totally eliminated upon initial purchase, if you put 20% down.
Unknown Speaker 10:38
Yes, absolutely. So if you have the funds to put down 20%, you can avoid the mortgage insurance altogether.
Unknown Speaker 10:45
Now, I noticed, going through some real estate information here recently that builders and other people are coming out with fixed 30 year loans now where like 5.9 4.9, you know, instead of this rate by down type thing, do you have that in your office at this particular time,
Unknown Speaker 11:10
we have some options, we do use by downs because the builders use something called a forward commitment. And what that means if they've already made a deal with a particular lender, where they have bought down the rate for a certain period of time. It you know, when they offer those specials, they usually say you have to buy this month or buy this month or something like that, because the there's a time limit on those rates.
Unknown Speaker 11:38
So when they make this major purchase to reduce these loans and stuff, the time limit, what do they normally have? Three months, four months, six months? Yeah,
Unknown Speaker 11:49
they have the option. So it could be nine months, it could be six months, it could be a year, it depends on how much they're willing to spend at that time. So typically, the money is spent within a few months of the the their goal of selling these properties. So say they have, you know, 20 properties left, and they're just not moving how they want them to, then they will work out a forward commitment deal so that they can get those moving, you know, off the market.
Unknown Speaker 12:20
Now. Do you also do jumbo loans?
Unknown Speaker 12:24
I do? I absolutely do. Now how does
Unknown Speaker 12:26
your jumbo program work?
Unknown Speaker 12:29
So I have, I have a few because again, we have in house lending. But we also have I work with brokers too. So there are options where you can put down as little as 3%. Some of those options are based on your profession. So like there's a doctor loan, for instance, where we don't count your student loans. There's just a special program specifically for anyone in the medical field is a medical professional. So can be a veterinarian, it can be pharmacists, you know, it can be an educator, there's a few options. But then in general, typically you need at least 10% down. And that's based on your credit. You also there's also an option for 15% down. A lot of people think you automatically need 20% For such a high purchase price. But that is not the case.
Unknown Speaker 13:25
Oh, that's great. That's great. Now let's talk about documentation. Because a lot of people need to know what type of documents you require to get a loan. Okay.
Unknown Speaker 13:36
So I would say in general, the main items you need are two months of bank statements. If you work a W two job, which means you have a nine to five, you have set hours and set pay rate. We need two years on your W twos. We need pay stubs for the last 30 days. What else if you have a 401k We'd like that statement so we can show you have savings and we're not just wiping out your bank accounts. And then that'd be the tax returns tax returns me two years of tax returns you want to make sure you're up to date on your taxes and any other like benefit letters. So say you're retired or you get Social Security or anything like that we need the most current benefit letter that you get typically you get those yearly I know sometimes the benefit or pension letters are dated we use those as long as the amount is the same.
Unknown Speaker 14:37
Now according to bank statements do you need three months worth four months worth six months worth how much information in time do
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you need? Just two months
Unknown Speaker 14:48
so you only need two months?
Unknown Speaker 14:50
Oh me two months. Okay.
Unknown Speaker 14:51
So I went down I know back in the day and I'm kind of dating myself. I've been a realtor a long time. It was three months. So that's good. Yeah,
Unknown Speaker 15:00
it's gone down to two. So they don't they're not in your business too much.
Unknown Speaker 15:03
Now what if a person owe the IRS, how do you handle that situation,
Unknown Speaker 15:10
they would either need to get on a Installment Agreement, so a payment plan, or they would need to pay it in full, you know, this is really up to them, if they get on the payment plan, we have to incorporate that payment into their monthly debt to income. So it will affect their purchase price. So let's say, you know, they have a high balance that they owe, and it puts them in the $250 purchase price, I mean, a payment monthly payment, well, that's going to affect how much home they can afford. So we that's something that we have to consider. So it's not required either way for us. You know, you'll have the option, especially depending on the type of loan, but it doesn't need to be addressed one way or the other. Okay,
Unknown Speaker 15:59
so it has to be done through documentation, of course, you know, but it's not something that should, you know, set you back from wanting to buy a home or stopping you from buying a home.
Unknown Speaker 16:10
No, absolutely not. Absolutely not. We that's kind of common, actually.
Unknown Speaker 16:16
Okay. Now, are you able to do loans for new homes?
Unknown Speaker 16:23
I am, yeah, I actually just closed one in Texas. Two weeks ago, it was a new build, they had gotten 5%. And seller credit purchase price was 518. I think they got about 25,000 in seller credit. And I was the lender that they chose. And so everything worked out. Great. Well,
Unknown Speaker 16:46
that's good. That's good. So tell me a little bit more about what was going on in the room in the loan market here.
Unknown Speaker 16:53
Um, I would say one thing I did want to mention is statistically 40% of annual purchases happen between March and July. So we're in a really hot, I guess, Vegas, no pun intended.
Unknown Speaker 17:12
It points over 100 lately? Yes,
Unknown Speaker 17:14
yes. I think we're expecting 110. Today. Yeah. But yes, we're in the middle of a very active market, a lot of people are relocating either in or out of Vegas. And so you want to be in a position where you'd know what you qualify for, that you can make an offer when you find the home of your dreams. One thing I hear is that people are looking looking looking, but the end and they find something and then they want to make an offer. But by the time they apply and get everything in the offer has already been made. And so they missed the opportunity. So I would just say positioning yourself. So you can make sure that you're ready to and you're addressing the things that need to be addressed. Absolutely.
Unknown Speaker 17:59
Because here's, here's what here's the process, folks, you know, you need to get pre approved. Once you talk to Rachel and get your docs in and stuff, and she gets you pre approved, we will know how much home you are able to afford. And once we know that, then I can do my end of the deal, which is help you find a home that you want. That's right. Or if you want to sell a house, you know, it's a process. And we're here to help you. It's a long process sometimes and it's a short process sometimes. But nonetheless, it's a process. And we are here to help you. Like I said, there's a lot of paperwork involved a lot of contracts. And that's what we do. Yep, we want to make it easy for you to buy a home as fast as possible.
Unknown Speaker 18:52
702-551-9511 and
Unknown Speaker 18:57
you can call me at 702-809-2949. Now I'd like to take the time and tell you a little bit about this brand new home. Now this brand new home is for sale at $329,990. It offers 13 109 square feet with three bedrooms, two garages, two and a half bedrooms. And it's two story. So if you're interested in this whole house, and we can go look at it. And also Rachel can make the loan on his house for it. Isn't that right, Rachel?
Unknown Speaker 19:35
That's right. That's right. You know.
Unknown Speaker 19:40
Also, if you're looking to sell your home, you can call us and I can get out to your home and have a look at it. Do a CMA on it which stands for competitive market analysis to come up with the fair market value for your home. After prove you in your home, you know and looking at your place I I can give you some pointers on getting your home ready for sale. Once that takes place, then we can put your home in the MLS, which stands for the multiple listing service. And within that listing service, there's almost 17,000 agents that will have access to your home, which makes it easier for your home to sale. You know, and we can set up having a lockbox on your home, if you like we're on agents can show your home, we can put a sign in the yard, which is very helpful, because most homes are sold off the sales side will advertise your home via news outlets, the internet, radio website, etc. will take care of all the contract work, all you have to do is sit back and rely upon us. We'll make sure all inspections happened. And we made sure to take care of all the due diligence items. So as a realtor and as a lender, that's what we're here for. We're here to help you. Yes. Okay, so let's get back to some other loans here. Because I'm kind of interested in the bridge loan myself, and I know you do bridge loans, right?
Unknown Speaker 21:13
I do do bridge loans, I do so
Unknown Speaker 21:17
so. So run that information by the people. So they know what a bridge loan, how it can help them. It's kind of like in between selling and purchase. Exactly. Selling and
Unknown Speaker 21:28
purchasing. Yes. So if you are in the process of selling your home, then it just hasn't sold yet. But you're looking to buy another home. Typically, you need a bridge loan, and a bridge loan will cover you until the home sales. So we actually rolled out a new program, I just I found out I know like details about it. But basically, our company will guarantee a certain percentage, if you don't sell the home to give you and then it'll give you it'll kind of there's no contingency is what it comes down to because an offer has been made. And so if it happens to sell, I believe within 60 days, you can of course take that other offer, but you have an offer on the table. So if it's something that you're you consider, you know, then you can avoid the contingencies. Because I know that's a big issue right now, when making offers a lot of sellers don't want to wait for you to sell your home. But yeah, the bridge loan is definitely it's another mortgage. So let's make that clear. It's only temporary. Yes, it is only temporary. It is only temporary. But it's a good it's kind of it's like the name says it's the bridge you to get into your new home.
Unknown Speaker 22:56
What are you trying to get you on the house? So?
Unknown Speaker 22:58
Yep.
Unknown Speaker 23:01
Now, is there any added fees on a bridge loan? Um,
Unknown Speaker 23:04
you know, I, I mean, there's, there's closing costs, they're not the same as your typical, you know, realtor fees or anything like that. Yeah, but yeah, but there's, you know, the whoever is doing the work, you know, they have to get paid. So anything that's required would be covered by any fees, but they're, I would say they're minimal in comparison to selling a property or refinance refinancing a property. Now,
Unknown Speaker 23:34
if you're a foreign national and you looking to buy here?
Unknown Speaker 23:38
Um, that is an option. There are programs that allow foreign nationals, I tend buyers, typically, you need great credit, and you need a pretty penny in the bank. Typically, that's what you need. Well,
Unknown Speaker 23:53
that's not bad, because, you know, we want everybody to get home here in Las Vegas. So yes, you know, there's a lot of rules and regulations doing so but they have to be followed. Yes.
Unknown Speaker 24:03
And there. I mean, there are options out there. So you can come together and, you know, purchase with others. It doesn't have to just be one person. So I'm sure there's something that can make it work. Absolutely.
Unknown Speaker 24:15
Now, if you're looking for a new home, folks, you know, we have 31 New Home Builders in Las Vegas, approximately. And we have over 257 new home communities. At work in there's roughly 2000 new homes for sale in Las Vegas, and the average starting price is $249,900. So there's something out there for everyone. You just have to decide where you fit in. As they say get in where you fit in. That's right. That's right. And you have to if you're sitting on the fence, I understand that too. But the more you wait, the longer you lose, you know money on the long run Yeah, because you lose an equity.
Unknown Speaker 25:02
Yeah. And the competition is coming as soon as rates drop. Oh, remember when they were over bidding on properties that's around
Unknown Speaker 25:09
the corner? Yes, it is, it is. And there's another big thing coming up coming down the pipe too far as laws go, because August the 17th, they're going to start a new program where it's going to be a new law, it's not going to be a program, it's going to be a national law, where future buyers are going to have to sign a document stating that they work with a realtor, and that they agree to pay the realtor you know, so it's gonna be a negotiated thing between the buyer and the realtor now, hmm, you know, was will involve money. So if you want to save or not having to pay a realtor, which is up to you, you need to you know, buy a house perhaps before because the 17 because this is going to be mandatory. You know, we won't be allowed anymore to put a buyer in our car and take them to show them a house without a agreement between myself and the buyer. Wow. Okay. So it's going to add additional fees on the purchase of a home. Anything else about any loans?
Unknown Speaker 26:25
Um, you wanted loan limits? So I have those,
Unknown Speaker 26:28
well, I need that, you know, get them to the public, so they know what they are. Yes,
Unknown Speaker 26:32
yes. Yeah. So for FHA this year, the loan limit is $498,257 here in Clark County. So that means that's what you can borrow? Yes, that's what you can borrow. They're gonna back let's say yes. So that that's after your downpayment is applied. So that actually puts your purchase price around 510 515, something like that. For conventional the loan limit is $766,550. Now there's different loan limits for the the number of units so that's for a single family home. Okay, and then now there's higher limits if it's a duplex triplex four Plex.
Unknown Speaker 27:22
One final note here, I'm gonna give a little information about another house we have for sale. This home was offered at 1,250,000 with approximately 3000 foreign 38 square feet, featuring a pool and spa firepit area landscaping covered patio. This Mediterranean style one story property offers five bedrooms, four bathrooms, four car garage, with pool through backyard carport, RV parking with full hookups, in a guest house, own solar panels, shutters and kitchen equipped with stainless steel appliances, granite countertops, a pantry located on a 17,000 square foot lot, you can call me at 702-809-2949. And Rachel has the loan documents ready to go and you can reach her at
Unknown Speaker 28:15
702-551-9511.
Unknown Speaker 28:20
That means our show for today. And we thank you for listening. Please tune in next month, the second week of the month. That's our show. So again, I want to thank Rachel Nichols for coming here and give me a little information about loans. Thank you, Stan, no problem. And we want to wish Rachel well because she's going to have her first child pretty soon. When that child gets 15 years old, and she gonna say, Stan, what did I do? Again, folks, thank you and I do appreciate Rachel being here with me today. Thank you. Thank you for listening to the Las Vegas real estate rule. I can be reached at 702-809-2949 or you can go to my website, new home safari.com And please remember, nothing comes to a sleeper with dreams.
Transcribed by https://otter.ai