For many, living in the master-planned community of The Vistas in Summerlin in the Las Vegas Valley has been a life-long dream. However, with the prospect of purchasing a dream home in Summerlin, comes the prospect of deciding how to finance that dream.
Homes for sale in The Vistas Summerlin can be bought through a wide variety of financing options, however, each potential homeowner should make sure that they are well-informed as to what their options are and what obligations they entail.
The first thing to understand when purchasing a home for sale in The Vistas Summerlin, is what types of loans and financing options are available.
Unlike FHA and VA loans, conventional loans are not backed by the government. This type of loan is most likely the best bet for anyone with a 10% to 20% down payment. Conventional loans offer a wider range of loan products and allow higher loan limits. However, they have more strict underwriting rules and banks are likely to impose additional fees. It is also possible to qualify for a conventional home loan with less than 10% for a down payment, but it will require high private mortgage insurance premiums.
FHA loans are federally backed and often thought of as first-time home buyer loans. However, anyone who meets the required guidelines can qualify. One of the biggest requirements is that the borrower must be buying the home as an owner/occupant. These loans allow higher debt ratios and are usually more forgiving of poor credit scores. In addition to the list, they generally have lower requirements for a down payment. In fact, down payments as low as 3.5% are allowed. However, due to their low down payment requirements, they usually have an upfront mortgage insurance premium. This MIP is financed into the beginning of the loan and requires a monthly payment.
FHA loans have a big advantage because the required down payment can be gifted from a relative, which allows someone without a down payment to purchase a home. In addition to this, in certain circumstances dictate that the homebuyer can have a co-signer/co-borrower who is not a resident of the property in question. Unfortunately, the disadvantage of this type of loan is that there is a maximum loan limit for each geographical area.
In order to qualify for a VA loan, the homebuyer must be eligible through their services in the US military. In order to qualify for a VA loan, the veteran must first obtain a Certificate of Eligibility from the Veterans Administration. These type of loans have the highest debt ratio of all and they are also the only loan that can be legally assumed by another buyer without the existing lender’s prior permission. These loans also allow the seller to pay all of the closing costs, however, the sales price is usually adjusted to reflect this contribution.
First Time Home Buyer Loans
Each year, the state of Nevada allocates funding for the mortgages of first-time home buyers. This is typically referred to as a "state money" loan. This type of loan generally runs ½% to ¾% below the current market rate. There is also the possibility of receiving a state contribution towards the first-time home buyer’s down payment.