Thousands upon thousands of Southern Nevadans have packed up and moved into rentals after losing their homes to a short sale or foreclosure as a result of the recent tough economic times.
Unbeknownst to many and contradictory to the advice received at the time of their unfortunate move, many no longer have a pre-determined “wait time” before buying another home thanks to new lending programs that reduce the wait to buy another home to a year or even a day after a short sale or foreclosure.
“There seems to be conflicting information about how long you have to wait before you can buy another home after a short sale or a foreclosure. Because of new lending programs, there is no longer a cookie-cutter wait time,” explained Rick Piette of Premier Mortgage Lending, a full-service lender based in Las Vegas that serves the greater Las Vegas area. “Depending upon your unique circumstances and the specific lending program, many people can buy another home a year or even one day after a short sale or foreclosure.”
According to Piette, the confusion has been caused because the government-sponsored enterprises standards (GSEs) describe at least a two- or three-year wait after a short sale and longer after a foreclosure. However, some new lending programs have less restrictive guidelines, offering qualified borrowers the opportunity to buy another home without this prescribed wait.
Among these new lending programs are the Federal Housing Administration’s “Back to Work – Extenuating Circumstances” and the locally-based Another Chance Nevada, both of which are available through Premier Mortgage Lending.
“Both the ‘Back to Work’ program and Another Chance Nevada are designed for those who have experienced a short sale or foreclosure. Each shortens the wait time to buy another home, reducing it to a year through the FHA’s ‘Back to Work’ program and to as little as a day through Another Chance Nevada. While each re-opens the doors to homeownership, there are some distinct differences in addition to the wait period that potential borrowers need to understand,” Piette said.
Announced in August, the “Back to Work – Extenuating Circumstances” program is designed for those whose short sale or foreclosure was a result of a financial hardship such as a 20 percent loss of income or loss of employment, and this “economic event must be proved.” Among the requirements is that the borrower has financially recovered by showing 12 months of timely payments and meets HUD requirements for an FHA-insured mortgage.
On the other hand, Another Chance Nevada was launched by Premier Mortgage Lending two years ago and is a non-traditional loan program. Private and institutional portfolio lenders offer 15- or 30-year, fixed-rate loans at interest rates typically higher than traditional mortgage rates. At least a 20 percent down payment is required, which can come from personal funds or be obtained as a gift from family members. Borrowers may close within 30 days from the time of loan approval. The loan may be refinanced at any time without penalty.
“The obvious advantage of this loan is that you could move right into a new home of your own, without the double move and without renting,” Piette said.
Hundreds of Southern Nevadans have used an Another Chance Nevada loan on the purchase of a re-sale or a new home. 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.
“The first step that you should take before beginning a home search is to meet with a full-service lender like Premier Mortgage Lending for complimentary mortgage prequalification. It’s important to meet with a full-service lender who knows about the many different lending programs, takes the time to understand your personal situation, can help you understand your options, and is able to connect you to different lending programs including both new programs as well as conventional mortgages,” Piette said.
“It’s only after meeting with a mortgage professional can you accurately answer the questions ‘Can I buy a home again?’ and, more importantly, ‘Is now a good time for me to buy a home?’”
For additional information or to schedule an appointment for mortgage prequalification, call Premier Mortgage Lending at 485-6600 or visit www.AnotherChanceNevada.com.
Premier Mortgage Lending, NMLS #393282, is located at 8689 W. Sahara Ave., Suite 100, Las Vegas, 89117. The full-service lender is a member of the Las Vegas and Boulder City Chamber 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.