Have you ever noticed for those people who have a near-perfect credit score, the world seems to roll out the red carpet? Everything to do with finances is just plain easier. Credit is easily available; loan approvals are nearly instantaneous; interest rates are lower or non-existent.
You may know that’s how the relationship between “good credit” and “money” works because you were there at one time, and perhaps not all that long ago. Many Americans spent decades building and maintaining a sterling credit history in the years leading up to the economic crisis. And many of those same people were blindsided by a housing crisis that seemed to send them back to “Credit: Square One” when they lost their homes to a foreclosure or short sale.
But here in Las Vegas, people have been determined to get their lives back on track, particularly when it comes to living in a home of their own. That’s why Rick Piette, owner of Premier Mortgage Lending, created a financing division to meet that need: Another Chance Nevada.
“Our whole intent is built right into the name,” Piette said. “As a long-time Las Vegan myself, I saw first-hand the effects the housing crisis had on the people of our city. I wanted to find solutions to help them begin to repair the damage. And I did, by developing mortgage loans that would help people get back into a home sooner after a short sale or foreclosure.
Premier offers five different mortgage financing avenues for homebuyers:
■ Private money financing: Available as little as one day after a short sale or foreclosure and normally requires a minimum 25 percent down payment. Interest rates are around 4 to 5 percent higher than a traditional (good credit) loan; while origination fees may cost 3 to 4 percent. For those still rebuilding credit — but with the available funds — this financing is ideal for two reasons: 1) It allows buyers to take advantage of current home prices; 2) There is no prepayment penalty, so they can refinance in the future for the lower rates of a traditional loan.
■ Veterans Affairs financing: For those who are VA eligible, this financing requires a two-year waiting period.
■ Federal Housing Administration financing: An option for buyers with a three-year waiting period. However, the current maximum FHA loan amount in Clark County is $287,500, which means that home purchase choices may be somewhat limited.
■ Conventional financing: Offering loan amounts of $417,000 or less, a conforming conventional loan requires a varied waiting period:
■ Short sale: Four years before buyers can qualify for conventional
■ Foreclosure: Seven-year waiting period required.
■ Jumbo financing: Similar to conventional loans, but applies to loan amounts above $417,000. A short sale waiting period is typically five years; while a foreclosure is seven years. However, if you have an established banking relationship, some banks may provide jumbo portfolio financing without the extended waiting period.
“We know that mortgage loans can seem confusing to many people. But to be honest, that’s OK. No one is an expert at everything. That’s why people seek out advice from experienced professionals before making a major purchase — and a mortgage loan is one of the largest financial commitments most of us will ever make. For that reason alone, you need to know that the mortgage lender you choose not only knows their business — but is committed to getting you the best deal possible,” Piette said.
For more information, call 702-485-6600. Or, apply online at www.premiermortgagelending.com.
Premier Mortgage Lending, NMLS No. 393282, is at 701 N. Green Valley Parkway, No. 125 in Henderson. The full-service lender is a member of the Las Vegas and Boulder City chambers of commerce, Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.