Nevada Real Estate >> Las Vegas Real Estate Specialist: May 2010

Southern Nevada condo market still wallows in the Lehman moment, especially the high-rise luxury segment that occupies choice space for the most part on and around the Strip. Units are hard to sell because mortgage financing has dried up, sharp value declines have scared would-be buyers to sit and wait and the glut of vacant inventory gives no one enough confidence to commit to anything. Las Vegas luxury condominium developers had a totally different vision in mind when they started their projects a few years ago, when the thinking was that if you build it they'll come. Well, they did build it, but they aren't coming.

MGM Mirage's CityCenter unveiled its massive multi-use development on the Strip in December, including a high-rise condo component scattered in several buildings. Just like everyone else in Las Vegas, it has found that selling them is no walk in the park.

The condo-hotel Vdara has managed to close on only 78 out of 1,543 units through April, according to SalesTraq, a Las Vegas real estate information boutique. Although it began closings only in March CityCenter had announced earlier in the year the sale of 698 condos. Mandarin Oriental has closed through April on 32 uber-luxury units out of 227 available, while months ago it reported contracts on 205 of them. Veer Towers has 670 condominiums in two distinct leaning structures where closings just kicked off in May, with 480 of them sold according to CityCenter.

To address the major issue of mortgage availability MGM Mirage began offering seller financing to some buyers. It chopped off 30% from the condo prices over the winter to bring them closer to market. Evidently these changes haven't been enough, though, to excite the recession-weary prospects since the sales figures are very weak. On top of a dysfunctional mortgage and real estate markets comes a dispute with Perini Building Company over construction payments that will make some people reconsider their plans. Buying into a condo project under litigation is generally to be avoided.

Metrostudy, a housing industry research shop from Houston, reported recently that Las Vegas has 8,200 empty condominiums, including the ones from CityCenter. Moreover, SalesTraq informs that at this sales pace there is a 20-year supply of them. That is a tough environment where to successfully market condominiums no matter how luxurious they are. And no matter what kind of Las Vegas Strip views they offer. To efficiently move this CityCenter inventory requires further price cuts, down to where the Southern Nevada high-rise condo market is, otherwise the marketing budget currently in use is mostly thrown away.

www.lasvegasmtg.com Report: Ron Paul Legislation to Return $8,000.00 First Time Home Buyers Tax Credit

May 25th, 2010 Ron Paul (R TX-14) introduced legislation HR 5398 to permanently reinstate the First Time Home Buyers Tax Credit of $8,000 and amend the 1986 Tax Codes allowing for Federal Declared Disaster areas for home buyers to receive the credit to replace or repair destroyed homes. 

The new legislation would permanently make available the $8,000 Tax Credit for First Time Home Buyers and would greatly expand the tax codes on who would be able to qualify for the Tax Credit.Here is a list of proposed changes to the Tax Codes.

1. Currently if a home owner suffers a property and causality loss in a Federally Declared Disaster Area, but does not itemize on their Tax Returns they cannot write off their losses. If HR 5398 passes it would allow up to 5 years from the date of the loss to amend or file for the loss on their Tax Returns.

2. It would allow existing Home Owners to receive the $8,000.00 Tax Credit that was for First Time Home Buyers to apply for the $8,000.00 Tax Credit if they are repairing or replacing a home that was damaged or destroyed in a Federally Declared Disaster Area.

3. It would also allow people that lost their jobs from a natural disaster to collect unemployment from the Disaster Relief and Emergency Assistance Act tax free.

Ron Paul while addressing the House Of Representatives Stated " Renewing the first-time home buyer's credit will help Americans purchase a first home with their own money, instead of having to rely on government-funded or backed programs."

It is my opinion that the legislation will help right the wrongs that currently prevent losses incurred from natural disaster on  a group of Tax Payers that do not itemize to write them off is the right thing to do. I also believe that not having to pay taxes on unemployment from a job loss incurred because of a natural disaster is the right thing to do.

I also agree that the $8,000.00 Tax Credit for First Time Home Buyers will be necessary until we see some light at the end of the tunnel and a recovery in the housing market and a decline in the unemployment rate.

What I find interesting is this legislation is coming from a Ultra Conservative that has run on a platform that Government is to big and wanting to abolish the IRS and lowering taxes for all Americans in his 2008 Presidential candidacy is sponsoring this bill. In his comments " Renewing the first-time home buyer's credit will help Americans purchase a first home with their own money, instead of having to rely on government-funded or backed programs" seems out of touch when you consider where the Tax Credit is coming from! The Tax Credit for First Time Home Buyers is coming from "US".

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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I am pleased to report that today around noon we surpassed 10,000 active listings and our inventory is GROWING quickly!

This is great news for buyers frustrated with writing multiple offers only to get outbid time and time again as sale prices were drawn well above the list prices and cash buyers had preference over financed buyers!

If you decided to throw in the towel and sit on the sidelines from the Las Vegas Real Estate gold rush you may want to consider to jump back in soon!

We do still need about twice as many active listings  to turn this from a big time seller's market back into a stable market (I estimate 18000-24000 listings.)

Give us a call at 702-966-2494 if you would like to be set up on a free up to date home search!

In Part 1 and Part 2, I discussed the trials and tribulations of getting financing for a condo purchase as well as some of the problems with verifying a borrower's employment.  In Part 3, I want to address something that Ralph Gorgoglione had asked about in his post and that was the new documentation requirements for FHA.

The truth is that there isn't really any new documentation being requested by just FHA (except in property flips) but to those Realtors who are not familiar with an FHA transaction, the additional documentation required by FHA may seem like new documentation requirements. 

While there is some new documentation that is being required by lenders, this documentation is being required for all loan transactions and not just FHA loan transactions.  As for the additional documentation required on FHA transactions, these are documents that have always been required by FHA for any and all FHA transactions. 

There are quite a few of them and I'm not going to go into all of the different forms because most of them are only required by the borrower and require absolutely no assistance and/or cooperation from the other parties in the transaction.  However, there are a few that require the signature of other parties in the transaction and they are a) FHA Amendatory Clause, b) FHA Real Estate Certification and c) 203(k) Purchase Forms. 

FHA AMENDATORY CLAUSE:  This is basically just an agreement between the buyers and sellers of what the sales price is and that the maximum amount of mortgage will be determined based on the appraised value and not the sales price.  Furthermore, an amendatory clause must be included in the sales contract when the borrower has not been informed of the appraised value before signing the sales contract. 

FHA REAL ESTATE CERTIFICATION:  This is basically an agreement between the parties of the transaction that the terms and conditions of the purchase contract are true to the best of their knowledge.  Furthermore, any other agreement between the parties (i.e. repairs, credits, etc...) are also part of the sales agreement. 

203(k) PURCHASE FORMS:  This is a whole series of documentation that is required by some of the other parties in the transaction in addition to the borrowers.  One of the conditions of a 203(k) loan is that the seller must sign a purchase agreement addendum agreeing to the terms and conditions of the 203(k) guidelines as outlined by FHA. 

Furthermore, there will also be a designated amount of funds placed into an escrow account after the close of escrow on the sale of the property.  This additional escrow account is for the sole purpose of repairs and/or rehabilitation of the property.  As a result, the escrow company must agree to adhere to the terms and conditions of the borrower's agreement with the lender on how and when these funds are to be distributed. 

Lastly, as I mentioned before, the only new documentation that FHA is really requiring is in the case of properties with less than 90 days of seasoning (i.e. property flips).  The reason for the new documentation is because this is actually a new option for FHA; FHA has never allowed flipped properties before. 

As of February this year. they are now allowing them (temporarily) in an effort to reduce the current inventory of all of the properties being scooped up by the tremendous amount of all cash investors. 

I could write an entire post on the FHA requirements of this new process and the trials and tribulations of getting an FHA loan for a property with less than 90 days of seasoning.  However, suffice it to say that if the cash investor who purchased the property less than 90 days ago is making a HUGE profit on the resale, they are going to need to justify the HUGE increase from the previous acquisition price to the current sales price (I speak from exerience when I say this).  

If a cash investor isn't willing to prove what they spent to improve the property in the less than 90 days then chances are they will be turning away approximately half of their prospective buyers, which is about the percentage of FHA loans being funded these days.

None of these things have to hang up and/or delay the loan transaction but they will require the assistance and cooperation from the other parties in the transaction.  What we (MLO's) don't need are a bunch of whiny, juvenile agents, escrow officers as well as buyers complaining about all of the additional documentation required by FHA.  SERIOUSLY!!!  

If you don't want to do what's necessary to get an FHA loan then put down a bunch more money and get a conventional loan.  Otherwise, do what is necessary (preferably without a bunch of whining and complaining) and I will personally do everything I can to make the process as less stressful as I possibly can.

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 1

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 2

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 4

The Lakes April 2010 Real Estate Resale Market Report:

• Listings (5/15/2010):  55
• Under Contract (5/10/2010):  86
• Sold April 2010:  20

Since Last Month's Report:  Listings UP +2, Pendings UP +10, Sold Units UP +2

Why Las Vegas Pendings Aren't Selling

View Last Month's The Lakes Market Report Right Here!

For More Las Vegas Communities and Reports Click Here

When the housing market began recently unraveling at warp speed and quickly lugged the overextended mortgage industry along with it things looked quite bleak for the U.S. economy. Housing, after all, is one of its major components and should it be hit with a serious medical condition, taking a simple pain killer wouldn't help much. Then if ever, when the fury of the real estate sector's downturn became better understood, drastic action was called for.

The Federal Reserve bravely stepped forward intent on showing how it's done. Right on the heels of the private investor vanishing from the secondary mortgage market the Fed knew that to avoid an utter disaster with global consequences it had to quickly fill the vacuum. It began buying MBS, or mortgage-backed securities, insuring that home loan interest rates wouldn't shoot through the roof. That was essential to keep the housing market on its wobbly feet, giving it something concrete to rely on. There was some early howling against this vast government interference but it soon abated as stark reality set in. Without the Fed's decisive action Stone Age would have been right around the corner.

Congressional Budget Office, or CBO, reports that the Fed's asset collection now exceeds $2 trillion, of which MBS make up well over half. Other holdings include Treasury securities and bank loans. It earns interest on all that paper, as it should. CBO projects that the Fed will haul in about $70 billion in profit this year on its portfolio, money that it'll eventually remit to the Treasury. The central bank assumed far more risk than it usually does by purchasing MBS, but it seems to be paying off. Who says the public sector can't make money?

The government has bailed out scores of mortgage lenders and financial institutions during this notorious housing meltdown, partly with the idea that they would then help distressed homeowners ward off potential foreclosure. To a large extent, the results are disappointing. Their playbook instead often included such selfish tactics like paying absurd bonuses and completing acquisitions, tricky moves that stimulated much of the angry population into voluntary Wall Street watchdogs with a mission.

What if the Obama Administration came up with a new initiative using the $70 billion Fed profit to make a real and lasting difference in the mortgage foreclosure predicament? The current programs addressing it, the HAMPs, RAMPs and STAMPs and such, have principally proved inefficient. Now is the time to try a fresh angle to try to sort this housing and mortgage mess out and here is a nice down payment for it.

Photo by wwarby

Charleston Heights April 2010 Real Estate Resale Market Report:

• Listings (5/15/2010):99
• Under Contract (5/15/2010): 142
• Sold April 2010:  37
  

Since Last Month:  Listings are UP +13 units, Pendings are DOWN -4 units, Solds are DOWN -3 units.

Why Las Vegas Pendings Are Not Closing

Last Month's Charleston Heights Real Estate Market Report

For More Las Vegas Communities and Reports Click Here

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Mountain's Edge April 2010 Real Estate Resale Market Report:

• Listings (5/15/2010):  189
• Under Contract (5/15/2010):  391
• Sold April 2010:  90

Since Last Month:  Listings are UP +14, Pendings are DOWN -5, Sales are DOWN -2

Last Month's Mountain's Edge Real Estate Market Report

Mountain's Edge is a newer community so many of the listings are short sales or bank owned.

Las Vegas Area Real Estate Market Watch was created for informational purposes only. 

This is for all the buyers wondering "where is the inventory"?  The inventory is here, this graph shows that buyer interest is extremely high and gobbling up all that new inventory coming online!

This is also for people saying "shadow inventory exists"!  Well I believe it exists but it also exists in short sales which has tripled to quadrupled it's formerly stagnant close ratio since late spring.

These are Listing/Under Contract & Pending/Sold Trends from December 2007-March 2010.

I do expect a frenzy of pendings & closes as the tax credits for first time buyers comes to a contracted halt at the end of April. Pendings have also begun their traditional "spring" rise.  Let the closings begin!

Arlington Ranch April 2010 Real Estate Resale Market Report

• Listings (5/15/2010):  29
• Under Contract (5/15/2010):  61
• Sold April 2010:  8

Arlington Ranch changes since last month:  Listings UP +6, Pendings UP +6, Sold units DOWN -6

Click Here for Last Month's Report

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View Arlington Ranch in a larger map

The two large GSEs, or government sponsored enterprises, that provide much of the liquidity to the secondary mortgage market are trying to improve their still misbehaving portfolios. Their underwriting guidelines have been steadily getting stricter which will certainly help, but most of the benefits of that will come later. The home loans currently causing such havoc for them were originated around the peak of the real estate bubble and soon after it spectacularly blew up into small particles. Their efforts are now largely focused on putting the breaks on the losses they are presently enduring.

Mortgage lenders requested to repurchase GSE's delinquent paper

When Fannie Mae and Freddie Mac audit distressed mortgage loans in their books and to their utter disbelief discover that their eligibility and underwriting guidelines have not been adhered to they can request the lenders to buy them back. Or they can ask to be compensated for the incurred losses. Fannie Mae's repurchases amounted to $1.8 billion in the first quarter, while at the same time in 2009 the same action brought in $1.1 billion. Freddie Mac, on the other hand, is to rake in $1.3 billion from distressed mortgage loans it sent back in the first quarter, whereas last year in Q1 it took home $789 million. For both the repurchase pace is obviously accelerating, indicating how feeble the housing market remains.

As mortgage lenders and servicers have to take back loans it saps their financial resources, choking in various degrees their channels of originating new ones. It can be especially harmful to mid-size and small banks whose revenue streams are limited, or heavily dependent on the home loan segment. Large lenders can better absorb Fannie Mae's and Freddie Mac's buy-back requests due to their diversification and sheer size. And should they still manage to stumble, as they obviously can with surprising flair, there is always Uncle Sam only a cell phone call away. Basically, that's why the recently-passed Wall Street reform bill was so sorely needed.

The entire mortgage lending platform is still operating under a big caution flag. The two GSEs are desperate to collect on these repurchases to give them some hope of a better future. These requests, however, suck badly needed energy from home loan providers who some time ago sent them carelessly underwritten paper. According to Freddie Mac, at the end of March around 34% of its unsettled buy-back demands were more than 90 days past due. Many mortgage providers simply lack the capacity to honor their contractual obligations. The weak is trying to get the other weak to pay up, making plain how fluid the situation still is.

Age Restricted (55+) Communities are scattered throughout the valley.  Many offer a variety community amenities for Seniors who enjoy active lifestyles.

Sun City Aliante is located in the Aliante Area of North Las Vegas, NV (zip 89084).  There are 1829 homes in Sun City Aliante ranging from 1157-2104 Square Feet.  Community Amenities Include:  Community Golf, Clubhouse, Gym, Pool, Spa, Tennis, Recroom.

Sun City Aliante Market Report:

• Listings (5/15/2010):  22
• Under Contract (5/15/2010): 41
• Sold April 2010:  9

Sun City Aliante is currently enjoying a stable to buyer's market.

Since Last Month's Report:  Aliante Sun City, North Las Vegas Listings DOWN -12, Contracted Homes UP +6, Sales UP +1

Renee Burrows carries the SRES (Senior Real Estate Specialist) Designation and has Probate and Estate experience.  If you need a referral to a Probate or Estate lawyer, please contact me!

Seniors Real Estate Specialists® are REALTORS® qualified to address the needs of home buyers and sellers age 50+. The SRES® Council awards the SRES® Designation to those members who have successfully completed its education program.

By earning the SRES® designation, your REALTOR® has demonstrated necessary knowledge and expertise to counsel clients age 50-plus through major financial and lifestyle transitions involved in relocating, refinancing, or selling the family home. Your REALTOR® has received special training, gets regular updates, and is prepared to offer the options and information needed in making life changing decisions.

For Last Month's North Las Vegas Sun City Aliante Report

For Most Current Sun Cities Market Report Click Here

Silverado Ranch April 2010 Real Estate Resale Market Report (Homes For Sale, Pending, Sold):

• Listings (5/15/2010):  137
• Under Contract (5/15/2010):  247
• Sold April 2010:  68

Since last month:  Listings are DOWN -1, Under Contract DOWN -16, Sales are UP +9.  The Silverado Ranch Area is Currently Enjoying a Seller's Market.

Read Last Month's Report Here

Land in the Las Vegas valley used to be a piping-hot commodity a few years ago, when the growth here easily topped all the other metropolitan areas in the country. The thirst for tracts of sand was such that prices zoomed higher year after year to reach a record $939,400 per acre - that is for land outside the Strip - in the fourth quarter of 2007, according to Applied Analysis, a local research shop. Housing prices closely followed the frenzied upward trend, median averages casually blowing past benchmarks that few real estate observers thought would be breached so soon.

That was then. New realities have replaced the go-go years.

Just like in residential real estate in Las Vegas, land owners by the dozen are being foreclosed on by banks. Applied Analysis reports that in the first quarter 74.4% of dirt transactions were tied to bank foreclosures. It's actually a touch higher from the fourth quarter of 2009 when the number stood at 65.6%. It's getting worse despite some tentative signs that the overall housing market in Southern Nevada is stabilizing.

Mortgage and land loan foreclosures keep terribly close company with falling prices.Las Vegas homes have given back as much as 60% of their values since the real estate market's peak. Land prices have done even worse than that. In the first quarter an acre of land could be purchased for a mere $182,441, a thoroughly steep decline of some 80% from the $939,400 it brought about three years ago, says Applied Analysis. Banks are not only struggling with delinquent mortgages but also with defaulting land loans. Scores of underwater homeowners in Southern Nevada are walking away from their home loans and now underwater land owners are doing the same thing. What is this world coming to?

However, a great opportunity awaits those who have some cash on hand and also posses a healthy dose of patience. Las Vegas housing market is being reset, starting with the price of land. It's going back to the days when average annual income and median home price were more or less in alignment, making for a stable residential real estate market. New home construction that will use today's land prices can be much more competitive with the REO- and short sale-infested existing home sale sector that has easily dominated the market in Las Vegas over the last few years because of a vast price disparity. Housing demand remains quite weak in Las Vegas despite attractive mortgage rates and decent inventory, but when the economy picks up those who bought low-priced land today will have something to crow about.

FHA loans have become very popular in the last 2 years and there are several reasons for this. What I hate hearing is that FHA mortgages have taken the spot of the subprime loans. This is not true at all. This statement is from those that are inexperienced in both the mortgage and the real estate industries. To many subprime loans should have gone FHA and that is just a fact. But why are FHA loans getting bad press now, stating that they are the most defaulted loans recently?  Read this : We should ABOLISH FHA loans...

In today's market, I am still hearing that if you have 20% down, that you are best using a conventional loan. But so many fail to realize that if you have credit score less than 680, that there are some major pricing hits. It's very sad when your loan officer doesn't even understand this and doesn't take the time to evaluate what the better loan is for their client. Even with 10% to 20% down and credit scores less than 680, FHA loans in many cases will be the best mortgage for you.

The example below is based on a $275,000 purchase price with 20% down. One reason why conventional rates are a little higher in this scenario as in FHA rates is because Fannie Mae and Freddie Mac have added penalties per se. If you are putting down less than 30% and your credit score is less than 720, certain fee penalties would apply to you, which would increase your rate and or points.  The FICO (credit score) that I am going to use is 639.  Keep in mind... Don't ever be fooled by that loan officer that says, don't worry, you can refinance later.  This is a bad statement for many reasons that I will write about another time.

***And keep in mind, some lenders have penalties on FHA mortgages with credit scores under 660. And many lenders can't do FHA loans under 620. At Infinity Home Mortgage, I can do credit scores down to 580 now. Just beware of those that promise you a mortgage with scores under 620. It can happen, but they aren't as easy as advertised. Please read - Credit scores/FICO scores - I need a 700 credit score? ***

Disclaimer :  These rates are examples of today's pricing, and the spread shown in the example is real with the same profit margin for both sides. To compare this scenario apples to apples, there are no lender fees and with 3/4 of a point on the conventional side because of the pricing hit for the fico score.

GOALS – Important :

**So IMPORTANT - your loan officer should always be asking your goals. For 3 years, 5 years, and 10 years. Yes, we all don't have crystal balls, but in many cases you should have an idea and a plan.  As you can see, on paper, it looks like the conventional loan would be cheaper. But some important things to know. It cost the conventional borrower an extra $825 upfront, so that $33.18 saved a month actually doesn't truly start until the 25th year.  In 5 years on all FHA loans, if you put 20% or more down, the FHA mortgage insurance falls off automatically.  So after payment 60, you will now be saving $58.49 more a month on the FHA loan.  And as you can see, in 5 years on the FHA loan, you shaved off $2,200 more on the principal based on the upfront MIP of $4,950 that was added to the loan. So as you can see, goals are very important. If you were to put even 15% down in the scenario above, FHA loans would be much cheaper right away.

For more FHA loans vs conventional loans comparisons :

• FHA loans vs Conventional loans - A true numbers comparison with 5% down -  12-20-08 -Using a 710 credit score
  

• FHA loans vs Conventional loans - A real comparison with 5% down - 11-15-08 - Using a 659 credit score
  

• FHA Loans vs Conventional Loans - 20% down - A Rude Reality Check -  04-03-09  - Would you believe that FHA loans could be cheaper even with 20% down?  Come see why and how.

• FHA Loans vs Conventional Loans - 5% - 4 comparisons that you need to know - 05-02-09 -Comparing a FHA loan against 3 types of conventional loans with different types of monthly mortgage insurance. Guess who won while still using a 679 credit score.....

• FHA loans vs Conventional loans - Knowing the true comparisons - 07-10-09  - A great comparison with a 679 credit score and 5% down.  This example will still show that even with a better than average credit score, that FHA loans are still better in many cases.

• FHA loans vs Conventional loans - Things you need to know with 10% down, especially in regards to Condos - 09-19-09 -

• FHA loans vs Conventional loans - Even with 20% down, FHA loans could be better - 05-23-10 - Knowing your goals are very important and this should be talked about, even if putting 20% down.
  

• FHA loans vs conventional loans - Why FHA home loans in New Jersey can be better with 5% down - 07-11-10 - There is a huge savings by using FHA loans with a credit score of 679 and 5% down.

Donw Payment Series - A Must Read -

• FHA loans vs Conventional loans - A real comparison with 20% down - Part 1 of 3 - 01-28-10 - Not much of a difference, unless you stay in the house for more than 5 years. Hence why a loan officer should be talking about your goals. So very important, yet many dont ask.

• FHA loans vs Conventional loans - Don't be cash poor!! - Part 2 of 3 - 01-29-10  I want to show even a bigger difference if you put less down. And even if you decided to put less than 10% down, because cash is king now. You can't predict even next week. And keeping in mind of some misleading rumors, that you need more than 10% down to buy a house.
  

• FHA loans vs Conventional loans - Get a bang for your buck - Large down payments aren't always the best way - Part 3 of 3 - 02-01-10 - Some great examples of having cash left over and not really affecting your monthly mortgage payment. And that you will have cash left over for emergencies. Keeping in mind that cash is king.

• And sellers, don't listen to your agents on how bad FHA loans are.

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

The 80 Acre "Mountain's Edge Exploration Park" offers breathtaking views after a small hike up Exploration Peak!

Mountain's Edge Exploration Park is Located on the SE Corner of Buffalo & Blue Diamond in the master planned community of Mountain's Edge.

Park Amenities Include:  Picnic Areas, Walking/Jogging/Hiking Paths, Volleyball, Horseshoe Pits, Large Greenbelt Area, Water Splash Area and a (very cool) Western Themed Playground.

After the short ascent (2846 feet) up Exploration Peak, you will find panoramic views of the valley - including the world famous "Las Vegas Strip"!

View of Mountain's Edge Exploration Park & Master Plan from Exploration Peak:

Panoramic View to NW Las Vegas Valley from Exploration Peak:

Panoramic View to NE Las Vegas Valley:  Includes Las Vegas Strip & Blue Diamond Road from Exploration Peak:

Close Up of Las Vegas Strip & Custom Homes Near Blue Diamond Road from Exploration Peak(having issues uploading due to bad gateways will finish photo uploads at a later time):

If you go hiking up Exploration Peak make sure you bring lots of water.  Even though I brought water I ran out and was hoping for a water fountain and there are no water fountains!!

In Part 1, I discussed the trials and tribulations of trying to buy and/or sell a condo in a complex where the homeowners association (HOA) is in severe financial and legal distress and how underwriting a mortgage loan package doesn't have to be this top secret process shrouded in mystery that no one but underwriters and MLO's are privy to. 

While there may be a lot of lenders and even MLO's who may want you (Realtors & borrowers) to think that you aren't allowed to know what really goes on "in underwriter", I'm not one of those people. 

I think it's our (MLO's) responsibility to inform our borrowers about what is going on with their loan application at all times.  Furthermore, we're doing our clients, their agents as well as everyone else in the transaction a disservice by not educating them about the underwriting process as well as lender guidelines. 

In my continuing effort to pull back the curtain on the underwriting process, in Part 2, I want to illustrate how verifying a buyer's employment can also cause hiccups along the way to the closing table. 

The days of just stating where you work and how much you make with no verification are long gone.  Working with borrowers who have long standing, stable employment with a small, local employer where we're usually dealing with a manager and/or supervisor or a human resources staff member is relatively simple and neat.  

Issues with verifying a borrower's employment typically come up when dealing with a) third party verifications, b) multiple employers or c) employment gaps. 

THIRD PARTY VERIFICATIONS:  These are services that many large, national, foreign and/or government employers use to conduct employment verifications for their employees.  The challenge of working with these organizations is that they usually don't provide enough info to complete a standard verification of employment (VOE) form and thus does not enable the lender to make a full assessment of the borrower. 

What we (MLO's & lenders) look for in a VOE are employment dates, position, rate of pay as well as a breakdown of earnings (regular pay, overtime, bonus, etc...).  We also want to know the likelihood of continuing employment. 

Third party verifications often lack a thorough assessment of the employee's employment history.  Moreover, with so many lenders now requiring a verbal VOE prior to docs or funding, not being able to get a verbal verification poses more risks to the lender and their investor because third party verifiers never do verbal VOE's - EVER! 

MULTIPLE EMPLOYERS:  In today's current employment market, multiple employers are becoming very much a reality with so many individuals taking on second jobs as well as new jobs.  Furthermore, multiple employers are very common with independent contractors/consultants who may work for several employers at a time for various projects or for a specified period of time. 

These employees may earn a different rate of pay for each employer creating even more challenges in determining an average income.  Additionally, since they may have only been hired for a specified project and/or period of time, their continued employment with a particular employer may not be as secure as someone who is a regular employee. 

EMPLOYMENT GAPS:  Once again, today's current employment market has been very challenging on many individuals and having employment gaps is very common.  Additionally, while unemployment benefits are a blessing to get us through a rough patch, they're doing borrowers no favors during a loan transaction.  However, the ability to explain employment gaps so as not to jeopardize the loan transaction can get complicated. 

While it's still possible to purchase a home if a borrower has one, all or any combination of these scenarios, there will be some hoops the borrower will have to jump through before getting to the closing table and this will most certainly require some additional documentation.  This is where working with an experienced and diligent MLO will be absolutely vital because much of this can be addressed and resolved without delays to closing escrow. 

However, having said that, some of these things will invariably hang up the process and when that does happen, some patience, understanding and cooperation from all parties would be greatly appreciated.  What we (MLO's) don't need are a bunch of whiny, belligerent, agents hammering us about screwing up the entire transaction.  SERIOUSLY? 

Stay tuned for part 3 where I discuss some of the facts and fiction of getting an FHA loan.

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 1

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 3

UNDERWRITING REALLY ISN'T THAT MYSTERIOUS BUT IT'S NOT STANDARD BY ANY MEANS EITHER - Part 4

What you need to know about getting a Veteran Home Loan in Las Vegas, NV.

Getting a Veteran Home loan is not as difficult or as time consuming as one may think in the hands of of someone who has the knowledge doing VA home Loans. There are more rules and guidelines that are in place with a home loan for VA, then FHA or Conventional Home Loans . This is to insure that the Veterans have enough income to qualify for the home payment and the maintenance and utilities for the specific home they are purchasing.

What are the benefits for a home loan for a Vet?

Vets that have served and has anything other then a dishonorably discharged on their DD214 or are currently on active duty and they have completed 24 months of continuous service are eligible for a VA Home Loan. If the Veteran was called up for service and served at least 90 days before being discharged and did not received a dishonorable discharge they are eligible for a Veteran Home Loan. The guaranteed Loan Amount in Las Vegas, Nevada is capped at $417,000.00. The VA Home Loan is not the lender ,but guarantees  the loan to the lender in case of default. The Veteran can purchase a home with $0 dollars down and can have up to 4% sellers concession which is 1% more then FHA and Conventional seller concession limits. VA Funding fee is calculated based on several factors if the Veteran is putting less the 5% down the fee is 2.15% of the loan amount for Active Duty and Veterans, and 2.40% for National Guard and Reservists for 1st time use. If the Veteran has used their VA Home Loan Guaranty previously then the VA Funding Fee is 3.3%. The Veteran is exempt from the VA Funding fee if they have a 10% or more service related disability. Veteran's Widows that were married at the time of the Veterans death are able to get a VA Home Loan. If the Veteran is on Active Duty and has been overseas for  at least 90 days from December 1st 2008 to May 1st 2010 will be still eligilbe for the $8,000.00 Tax Credit until April 30th 2011 to enter into a contract and will have to close by June 30th 2011.

Requirements for a VA Home Loan.

VA Home Loans requires  the loan to be owner occupied, but if on active duty will allow the spouse to be occupied owner.

VA does not allow non spouse borrowers on the loan.

Minimum FICO Scores required is  620 and the DTI will be capped at 41%.

Military Service that have been discharged or retired will need to provide a copy of the DD214 or if on active duty a signed statement from the unit Commander.

Discharged or Veteran retirees will need Certificate of Eligibility or the lender can get for the Veteran.

Waiving of the VA Funding Fee will need proof of Disability either recorded on DD214 or VA-26-8261-A Veteran Status form with Claim Number.

Debt to Income Ratios is 41%, but may go up with extenuating circumstances, which includes assets, higher reserves, and high FICO Scores.

DTI will also include the following: Child support, Child Care, Alimony, Maintenance set asides and the required Residual Income based on location and family size and the loan amounts.

Maintenance cost is calculated at .14 cents per the the subject house square feet and will be included on determining the DTI ratios.

Fees a Veteran cannot pay.

1. Processing Fee

2. Underwriting Fee

3. Escrow Fee

4. Termite Inspection

Getting a Veteran Home Loan in Las Vegas, Nevada is not difficult or time consuming in the hands of someone knowledgeable!

John Le Francois Senior Loan Officer All Western Mortgage Inc. 8345 W. Sunset Rd. Suite 200 Las Vegas, NV, 89113 US	Work: 702-947-0648 Mobile: 702-271-2659 Fax: 702-541-9901 jlefrancois@awmlv.com http://www.lasvegasmtg.com
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