Monday, May 18, 2009


For my clients that are looking for financing, please check this post by the official lender of mr. Aaron Gordon.
feel free to call Steve Harless at 702-217-1680 for additional information on homebuying tips or how to get started on buying Las Vegas Real Estate.
From that website, click “NHD – Down Payment Assistance Program”
One of the only 100% financing options left. A statewide initiative offered in every county in the state.
This is a loan program that the State of Nevada is offers first-time homebuyer's the down payment for your loan.
It’s a loan. A second mortgage. Not a gift. Up to $10,000 for down payment and closing costs.
The interest rate on a 30 year bond loan is 6.2000% today. As of 5/18, its 4.750% on FHA when you don’t use the bond.
The second mortgage of 3.5% to cover your down payment comes with an 8.20% interest rate and is a 20 year loan.
When is this good? Your buyer has no other way possible to get the 3.5% down payment on an FHA loan.
On a $165,000 purchase, the Bond loan will cost the borrower an extra $150 - $175/mo. It makes a lot more financial sense to try and get the 3.5% or $7,000 down on this loan. It will pay for itself within three years.
$165,000 sales price $165,000 sale price 3.5% REGULAR DOWN PAYMENT – 4.75% RATE 0% DOWN PAYMENT – 6.20% RATE $845/MO. $992 + $49 for 2nd = $1041
This loan is not available for everyone and is based on qualifying guidelines.
Although there are some strict eligibility requirements, this program may work for many first-time homeowners.
There are limited lenders in Nevada, Bank of America Home Loans is the main servicer.
Qualification Guidelines for the Nevada Bond Program
A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years. So even if you owned a home a few years back, if it’s not in the last three you may still qualify.
If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership. Please contact me if you think the home may be in a targeted area. These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.
Total gross household income must fall within the Maximum Income Limits.
In Clark County, if you have a 1-2 person household, income cannot exceed $78,480. If you have a 3 person or more household it cannot exceed $91,560.
In Washoe County it can be a bit higher. In Elko County a bit lower. See the website for details.
The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it's located.

Those maximums currently look like this:
Clark $349,515 Nye $283,981

Keep in mind, on a $349,515 sales price, the 3.5% down payment requirement would be $12,233 plus closing costs. Therefore, the $10,000 max bond help won’t quite cover that. Keep it under $300,000 if your borrower can’t come up with anything.
Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, or Fannie Mae, as applicable.
This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property. 401K is exempt…which is great news!!

You will also be required to successfully complete a First Time Home Buyer Education Course in person.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment.
However, due to historic low interest rates, they will want to exhaust all gift possibilities first. If you have any questions please don't hesitate to contact me.

Best regards,

Aaron M. GordonBank of America Home Loans
Senior Mortgage Loan Officer Platinum Club - Bank of America Top 5% in Nation
Phone: 1.702.283.2333Fax: 1.866.905.7922
10190 Covington Cross Dr. #190Las Vegas, NV 89144

Assistant: Leah FuscoPhone: 1.702.304.8906

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