Its no surprise that mortgage lenders are getting creative with financing in order to help bring some affordable loan programs to the table. Various lenders and government backed loan programs are offering help with down payments and closing cost. We are here to help you navigate getting the right loan for you. Here are some the new programs and current rates to help you attain your homeownership dreams!
NADA is a FHA loan program with 100% down. Usually FHA financing requires 3.5% down payment but this program has a little bit higher interest rate but does give you the down payment funds. You will still need closing cost (title & escrow fees, prepaid homeowners insurance and taxes). You can ask for a seller contribution to help with those. There are some other criteria and limits to this program. We are happy to discuss and set you up with one of our preferred lenders.
WISH is a downpayment assistance program offered through Neighborhood Housing Services of Southern Nevada, NID Counseling Agency of Southern Nevada, and Nevada Partners. This program is available to residents in Nevada with a 0% monthly interest rate. Get up to $22,000 in WISH grants in a 4-to-1 match. There is also some criteria you must meet to participate in this loan.
Nevada State Bank Loan Program
Nevada State Bank is offering $15K towards closing cost for the City of North Las Vegas with maximum income level of $45k per year. It differs (more income) if the purchaser has dependents.
Traditional Loan Programs
You may be wondering what the term “Buy Down” means when seller’s are offering it to help sell their home. This just means that they are willing to buy down the interest rate for you for a cost, usually referred to as “a point.” You can always ask the Seller for closing cost help or funds at closing to buy down your interest rate despite whether they are offering it or not. This is a negotiation tactic that your Realtor will help you with when putting an offer in.
Here are some of the interest rates for this week from our local mortgage lenders:
VA LoansNo Buy Down: 6.2% interest rate Buy Down Rate: 5.5% – 5k Cost FHA No Buy Down: 6.1% Buy Down Rate: 5.375% – $5300 Cost Conventional No Buy Down: 6.86% Buy Down Rate: 5.99% – 5k Cost
Adjustable Rate Mortgages
Adjustable Rate mortgages are back – making monthly payments more affordable! If you do have a sizeable down payment then an adjustable rate (ARM) might be just the right loan for you. A 10 year arm will adjust to what the rate is in 10 years. If you’re not planning on staying in your home that long or if refinancing is an option, then this might be a great loan for you to get in at a reduced rate and lower payment.
Refinance the Rate
Many buyers are getting into homes now while there isnt much competition, then planning on refinancing when the rate comes down 4% – 5%. Its highly unlikely that the interest rates will go back down to 2% – 3% – this was an anomaly, so don’t wait for that day because it will likely never come. In the meantime, prices have stabilized and likely to keep inching up. Its best to get into a home now and utilize one of the available loan programs.
The Sheeley Team is here to help guide you through both the loan and home buying process. Give us a Call/Text to discuss your options!