Tag Archives: rent

1% Down Mortgage Loan Makes Renting a Thing of the Past

One Percent Home Loan

Let’s face it, owning a home really is a big deal – and not only for the financial benefits it can bring. (Although really, we think that should be reason enough!) There’s also a significant emotional boost when you’re handed the keys to your very own home. There’s an incredible sense of accomplishment, of knowing you’re providing a secure foundation for your family, feeling a part of the community, and having the ability to build the life you choose. It can literally affect everything else going on in your life and that of your family.

But surprisingly, many people just make the assumption that buying a home is something that’s out of their reach. In fact, some studies show as many as 50% of renters would prefer to own rather than paying a landlord each month – but they never even inquire if they’re eligible for a home loan.

To Rick Piette, owner of Las Vegas-based Premier Mortgage Lending, that’s just giving up on your dream. “Sometimes, people don’t think their credit is good enough; or often, they think it means saving up for a big down payment plus a lot of closing costs – and they’ll just figure they’ll never be able to come up with that much money at once.”

But now there’s a way to get into a home without that big cash outlay. In fact, buyers can now buy a home for about the same as the cost of moving into a rental apartment or home – with Premier Mortgage’s new “Conventional One Percent Down with Equity Boost” mortgage loan.

“This loan program is successfully turning many renters into homeowners. And if you look at the numbers, it’s easy to see why,” explains Piette.

“Imagine finding a home to rent for $1,500/month. By the time you pay the first and last months’ rent, plus security, cleaning, pet, and other deposits, it’s probably going to cost you $4,000+ just to move in.

“But what if instead, you buy a $285,000 house. Your down payment will be $2,850, and your total monthly mortgage payment (with taxes and insurance) will be about $1,750. However, since you gain tax advantages by owning, your tax-adjusted payment (assuming a typical 25% tax rate) would be under $1,400 per month. That means you’ll actually save money on both your initial investment cost and your monthly payment.”

“It gets even better, though,” Piette reveals. “It’s a 30-year, fixed conventional loan, so the mortgage payment never changes. It also falls within our “No Fee” loan structure, which means borrowers pay $0 for Loan Origination, Documents, Underwriting, and Prep fees.

“And the icing on the cake? At close of escrow, the lender contributes an additional 2% down, so as soon as the buyer is handed the keys, they have 3% equity ownership, not just 1%.”

“The bottom line is that our 1% Down program takes a lot of the “scary” out of getting a mortgage loan,” Piette continues. “And when you compare the numbers of renting vs. buying with this loan, it’s tough to come up with an argument not to buy a home!”

To learn more about the qualifying conditions for this loan, visit Premier’s website at www.1PercentLoan.com. For additional information or to schedule an appointment to discuss Premier Mortgage Lending’s many other available loan programs, call (702) 485-6600. Or, apply online at www.premiermortgagelending.com.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, 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.

All That Stands Between You and The Home You Want is 1%

1 Percent Down

Imagine if only one month’s rent could get you into a new home. Can you picture it? You and your family – living in a home of your own? No more landlords. No more apartments. No more worrying about rent increases. And finally being able to hang a picture, paint a room, or plant a tree without getting “permission.”

If that sounds like a dream come true – hold onto that thought. Because now, Premier Mortgage can make that particular dream a reality.

“We now have a 1 Percent Down loan program that truly is exactly that,” reveals Rick Piette, owner of Las Vegas-based Premier Mortgage Lending. “And not only are we helping people become homeowners with this program – they’re also gaining an extra 2% equity at close of escrow.

“It all sounds a bit too good to be true, I know. And to be honest, when I was first presented with this loan program, I spent a lot of time playing “Devil’s Advocate” – trying to find out what the catch was. But I’m here to say it’s the real deal. No tricks, no last-minute surprises, no catches at all. It works exactly as it’s described – and buyers are taking advantage of this loan program with us every day.

It’s called the “Conventional 1 Percent Down With Equity Boost Program” – and here’s how it works:

• The Buyer’s down payment is 1% of the purchase price. (Example: $250,000 home = $2,500 down.)
• The Lender puts an additional 2% down on your home on your behalf. ($5,000.)
• So when you close escrow, you’ll instantly have $7,500 of equity in your home – not just $2,500.
• This loan also falls under our “No Fees” program – which means $0 for Loan Origination, Document, or Underwriting Fees. (With most lenders, this can add up to 2% of the purchase price to your closing payment.)

“Those are some pretty amazing benefits,” states Piette. “And the most common question I get from customers is “Why? Why would the lender put 2% down, too?”

“The answer to that is simple: The lender charges an interest rate slightly higher than the going market rate – about .25%. And because this program results in more loans being made – they recoup their investment from that additional interest.

At a time when interest rates are still hovering just above record lows, and ownership rates continue to rise, that additional .25% interest is an easily affordable way to secure a home for you and your family and continue to build equity over time.

As Piette explains, “Say you were to purchase that home mentioned above for $250,000. With 1% down, and a loan amount of $249,000, at 4.5% interest your principal and interest payment would be $1,229. At 4.75%, the payment would be $1,265.

“That’s a difference of only $36/month. When you consider that (a) most rental rates cost more than a mortgage loan for the same property, and (b) it might take you 1 to 2 years (or even more) to save the money to put 5% down to buy a home (in this case – $12,500 – and that’s if prices and interest rates don’t rise in the meantime) – it simply doesn’t make sense not to take advantage of this loan program,” concludes Piette.

To find out more about the “Conventional 1 Percent Down With Equity Boost” loan program with Premier Mortgage, visit www.1percentloan.com, or contact Premier Mortgage Lending directly at 702.485.6600.

Premier Mortgage Lending, NMLS #393282, is located at 701 N. Green Valley Pkwy., Suite 125, Henderson, 89074. The full-service lender is a member of the Las Vegas, Henderson, 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.

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 www.AnotherChanceNevada.com.

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.

Free Seminar Addresses Options for Underwater Homeowners

As Southern Nevada continues to struggle with the worst housing crises in its history, underwater homeowners continue to ponder what is their best option?

While loan modifications or refinances are a viable option for those markets that are marginally underwater, the Las Vegas Valley has suffered a nearly 50% drop in house values since its peak. What is the best option for underwater homeowners? If someone makes the decision to experience a short sale or foreclosure, when can he/she buy a home of their own again? These questions and more will be discussed on Wednesday, Aug. 8, when a local mortgage lender, real estate broker, an attorney whose firm specializes in short sales, and a Certified Public Accountant present “Underwater? Looking for Options.”

Scheduled from 6-8 p.m. at the Clark County Library, 1401 E. Flamingo Road, the free public seminar will address the realities of the housing crisis and will provide participants with the information to help them make the decision of what is right to do for their situation.

Rick Piette of Premier Mortgage Lending will discuss financing options after a short sale or foreclosure, “second chance” loans, rent vs. buy scenarios, and the Another Chance Home Loan Program.

Bob Hamrick, chairman and CEO of Coldwell Banker Premier Real Estate, will describe current housing market trends, the involvement of Realtors in the short sale process, and why now may be an excellent time to buy a home.

Focusing on legal consequences of short sales and foreclosures will be Jamie Cogburn of Cogburn Law Offices. Cogburn will also discuss the various options available to underwater homeowners and will describe the short sale process. Jason Payan of Payan & Miles CPAs will describe tax consequences of short sales and foreclosures. Additionally, Payan will talk about the pending Dec. 31 expiration of the Mortgage Forgiveness Debt Relief Act.

Seating is limited to 120. Reservations are required and may be made at WhenCanWeBuyAgain.com or by calling 485-6600.

“Going through a short sale or foreclosure can be very difficult and confusing because you’re upset about losing your home and may be receiving conflicting information as to your housing options and when you can buy a home of your own again. It is our goal, that through our free seminar, that those who have been hurt by the economy will become empowered and understand what their options truly are,” Piette said.

“By bringing a real estate professional, an attorney, a CPA and myself as an experienced mortgage lender all together in one room, we hope that participants will learn what having a recent short sale or foreclosure really means in their lives as well as when, and if, they can buy a home again in the near future,” Piette said.

According to Piette, the seminar is not just for those who are still in their homes, but also for those who have already had a short sale or foreclosure.

“You need to know the tax consequences and the legal implications, and you will find out when you may be able to get back into a home of your own. It is typically years before you can qualify for a traditional loan to purchase a home, but you will learn about new loan programs that can get you back into a home much quicker than you would think,” Piette said.

Hamrick says that there is not a one-size-fits-all course of action as to how one should move forward after a short sale or foreclosure.

“These are truly difficult times, and everyone’s situation is unique,” Hamrick says. “But through this seminar, we hope to be able to arm you with the proper facts to be able to determine what works best for you and your family.”

For additional information, visit WhenCanWeBuyAgain.com.