Should you rent or buy after short sale or foreclosure?

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.

According to Rick Piette of Premier Mortgage Lending, making this decision 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 up the door to homeownership to those with 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 to the numbers from my old home?

According to Piette, when evaluating the rent versus buy scenario for homes in different parts of the valley and at various price ranges, he discovered that it can be better off financially to buy a home. For example, he said that one would save over $21,000 in five years in purchasing a $135,000 home in the northern valley instead of renting it, and a 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. 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,” Piette said. “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 their personal situation, Piette encourages potential home buyers to complete mortgage pre-qualification, 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 currently 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 pre-qualification, call Premier Mortgage at 485-6600 or visit

Premier Mortgage Lending (NMLS 393282) is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117 and is a member of the Better Business Bureau and Southern Nevada Home Builders Association, as well as an affiliate member of the Greater Las Vegas Association of Realtors.