Premier Mortgage offers second-chance financing

New programs now make it possible to purchase a home immediately after experiencing a foreclosure or short sale. Among those is the Another Chance Nevada program offered by Las Vegas-based Premier Mortgage Lending.

Rick Piette of Premier Mortgage Lending said the decision to buy or not is highly personal with no one-size-fits-all answer.

"Although most Americans prefer homeownership, it is not for everyone. If you move around frequently, or if you can't put together the 20 percent down payment that is required for second-chance financing, you may be better off renting," Piette said. "However, when you are renting a property, you are waving goodbye to your money each month. Renting a home does not provide the tax advantages to the renter, as any and all tax advantages and potential go to the landlord."

The Another Chance Nevada program opens the door to homeownership to people who've had a recent short sale or foreclosure. Since its introduction last year, the program has garnered the interest of Southern Nevadans who prefer to buy rather than rent after personal financial challenges.

"Even though rates and fees through the program are typically higher than for a traditional loan, the numbers and lifestyle considerations make sense for many," Piette said.

He encourages potential buyers to do their research and ask themselves two questions:

■ Is it financially better to rent or buy?

■ Where do I stand in comparing the numbers of my new home with the numbers from my old home?

Piette said when evaluating rent-versus-buy scenarios for homes in different parts of the valley and various price ranges, he discovered that it can make more financial sense to buy.

For example, he said that someone would save more than $21,000 in five years in purchasing a $135,000 home in the northern valley instead of renting it, and would achieve similar savings of nearly $20,000 in buying a $210,000 home in the Summerlin area.

"We recently took a look at several of our actual second-chance buyers to see how their numbers compared to our research. The results were staggering," he said. "In just five actual examples, our borrowers moved into similar-sized homes and dropped both the principal owed and mortgage payments in half. With the huge drop in home prices over the last few years, it's easy to understand how this can happen.

"While second chance financing may not work for everyone, it is the right choice for many."

When deciding whether buying or renting a home is best for them, Piette suggested potential homebuyers complete mortgage prequalification, a service that Premier Mortgage Lending offers for free.

Through the Another Chance program, private and institutional portfolio lenders offer home loans following full-documentation underwriting guidelines.

These 15- or 30-year, fixed-rate loans carry interest rates that are typically higher than traditional mortgage rates, and require at least a 20 percent down payment. Borrowers may close within 30 days from the time of loan approval. Borrowers may refinance the loan at any time without penalty.

The lender is working with Beazer Homes, D.R. Horton, Dunhill Homes, Harmony Homes, KB Home, Pardee Homes, Pulte Homes and Del Webb, Richmond American Homes, Ryland Homes and William Lyon Homes.

As a full-service lender, Premier Mortgage Lending can also connect borrowers to traditional mortgages.

For additional information, or for mortgage prequalification, call Premier Mortgage at 485-6600.

Premier Mortgage Lending is at 8689 W. Sahara Ave., Suite 100.

The company is a member of the Better Business Bureau and Southern Nevada Home Builders Association. It's also an affiliate member of the Greater Las Vegas Association of Realtors.