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This is a K und studios original program.

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The content of this program does not reflect the views or opinions of 91.5 Jazz and more the University of Nevada, Las Vegas or the Board of Regents of the Nevada System of Higher Education.

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Hello to you, I'm Stan the real estate man. And welcome to the Las Vegas real estate room where all roads lead to a home

Unknown Speaker 0:37
Good morning, and welcome to the Las Vegas real estate room. Standard real estate man. I'm here with my distinguished guests. Miss Rachel Nichols. Please say hello to the audience. Miss Nichols.

Unknown Speaker 0:52
Hello, everyone. Happy Superbowl Sunday. Absolutely.

Unknown Speaker 0:56
Absolutely. And I know everybody's you know, kick back and ready for the game. Rachel, who do you like in the game?

Unknown Speaker 1:05
I'm a loyal chargers fan. I know they're not playing. But I'm keeping hope alive.

Unknown Speaker 1:11
Well, I'm a loyal, loyal Browns fan. So I'm rooting for the browns. There you go. Absolutely. Well listen, folks. My license is 28 to eight. And I've been a licensed Realtor in Las Vegas, Nevada since 1988. How about you, Rachel, what's what's your license number and how long you've been doing loans?

Unknown Speaker 1:36
My NMLS number is 1699997. I've been licensed lenders in Las Vegas since 2018.

Unknown Speaker 1:47
Great. Yeah. Great. Great. What company do you work for?

Unknown Speaker 1:51
I'm with fairway independent mortgage here in Las Vegas.

Unknown Speaker 1:55
Absolutely. Great. Great. Well, on today's show, we will talk about different types of real estate loans and getting approved for such. Also we will we will talk about buying and selling real estate. I really want to touch base on selling new homes. Okay. Now, Rachel on a conventional loan, let's talk about a little bit about the minimum downpayment and things of this nature. So what would be the minimum downpayment for a conventional loan?

Unknown Speaker 2:26
Well, if you're a first time homebuyer and you're actually going to live in the residence, the minimum downpayment is 3%. If this is your second time purchasing, then you would put down 5% If you're going to live in the property, and that also applies to if you're buying a multi unit. So to duplex a triplex or four Plex, you only need 5% down for a conventional loan. And as far as credit score minimum is 620. Of course, we want more you get better rates, you know you get, the higher your score, the better the terms are for your loan, I would say is more forgiving. You know, you people think that if they file for bankruptcy or, you know, foreclosure or short sale or anything like that there are different timelines for different loans. And so that's something that we look at as well. Do

Unknown Speaker 3:24
you offer a program where somebody can buy a house one day after a foreclosure or bankruptcy or Chapter Seven, that sort of thing, maybe they have to pay a little higher interest rate, not

Unknown Speaker 3:38
one day, because it's brand new, but there are brokers that kind of, you know, they have, they charge higher fees, and they have higher rate so I can see what's out there, but one day, it's kind of close and kind of pushing it.

Unknown Speaker 3:51
Okay. So what's the normal length of time? Um,

Unknown Speaker 3:55
well, for F for conventional, if it's a bankruptcy is four years, short sales four years, and foreclosure is seven years. FHA, which we're going to I know we're gonna get to, after two years of bankruptcy, you can purchase again, otherwise short sale or foreclosure, you have to wait three years, so it's a little less time.

Unknown Speaker 4:18
Okay? Well, folks, what we don't want you to do is be in that boat. Because it makes it rough on you, you know, to get another house. So, you know, you must try to you know, keep yourself afloat, and keep yourself in your home. Right. Now, let's talk a little bit about FHA. Oh, no, let's go back a little bit here because I want the audience to know what the loan limit is for conventional loans.

Unknown Speaker 4:46
Okay. So for conventional loans, that right now was just updated January 1, and the loan amount is 766,005 50. In our county and Clark County, mean, and that puts your loan amount at about 785 or so, depending on the downpayment, but that's about right. Okay.

Unknown Speaker 5:08
Now, in this scenario is the seller, let's say able to pay some of your closing costs for a loan limit like that.

Unknown Speaker 5:19
Absolutely. So we have seller concessions, there are maximums, that concessions or credits, I'm sorry. And there are maximums that a seller is allowed to contribute. And it's usually based on the downpayment. So if you're putting less than 10%, down, then the most they can contribute for conventional loan is 3%. If you're putting between 10 and 25%, down, then the most they can put in I mean, credit to is 6%. And that's again, for a primary residence. If you're putting down 25%, then they can contribute up to 9%. Wow. 9%, towards your closing cost. Yeah. And that's 9% of the purchase price.

Unknown Speaker 6:05
Now, I'm on an FHA, let's talk a little bit about FHA loan. In fact, he explained to the audience what FHA stands for,

Unknown Speaker 6:15
as the Federal Housing Administration, which basically says, it's a government loan. So the government is backing the loan. And so they have their own guidelines of what's acceptable, and you know, as far as the property is concerned, and as far as the buyer is concerned.

Unknown Speaker 6:34
Now, when you say back in the loan, what do you mean by that? How did he back this loan? Well, conventional

Unknown Speaker 6:40
is more for private backing. So that's Fannie Mae and Freddie Mac convent. I mean, FHA is backed by the actual federal government and backing means, basically, that they

Unknown Speaker 6:54
protect the moment yes. Yeah,

Unknown Speaker 6:56
that will work. Okay.

Unknown Speaker 7:00
So I guess if somebody goes belly up, they step in and cheered along. Yes. Yeah. Oh, great. Great. So it's kind of like protection, it is definitely

Unknown Speaker 7:10
for the lender as well. Now,

Unknown Speaker 7:12
what's the minimum down payment and the FICO score needed for this type of loan, minimum

Unknown Speaker 7:17
down payment is 3.5%. And the FICO score needed is a 580. To just even be eligible, you still have to pass through the system approval, so it's not black and white. But that's your starting point, you have to have at least that

Unknown Speaker 7:34
sort of FICO score is a little bit lower than a conventional loan. Definitely.

Unknown Speaker 7:38
It's a first time buyer friendly product. So if you've, you know, this is your first time and even if it's not, you know, I mean, you've had a rough run of things and you know, you've worked on your score to get it to that or it's dropped a little bit, then this is definitely an option.

Unknown Speaker 7:54
Okay, now, what is the loan limits of this type of loan?

Unknown Speaker 7:58
For Clark County? That one is $498,257, which puts your downpayment, I mean, after your downpayment, your purchase price would be about 515,000. Okay, yeah. Which is nice, because it wasn't like that before.

Unknown Speaker 8:16
Well, it seems like they've escalated the loan limits to match the sales price of these properties that are on the market now. Yeah,

Unknown Speaker 8:25
things have really increased. So they've made the adjustment, and I'm glad they did it and done it in such a timely manner. Because you know, usually it lags, right. So yeah, they're on top of it.

Unknown Speaker 8:35
So that means that your down payment is appropriate purchase price. Yes. Yes, absolutely. Now, let's move on to vas a little bit here. Okay. Explain to the audience what a VA loan is. It's

Unknown Speaker 8:50
for veterans only. It's a Veterans Affairs loan. And it's also government back. So it's back by the Veterans section of the federal government. With that one, the biggest benefit is there is no downpayment required. So if if you're a first time homebuyer, you're using your VA entitlement use do not You're not required to put down a down payment. You do have depending on what your entitlement, your Certificate of Eligibility says, you may have a funding fee if it doesn't say exempt. Otherwise, you just have your closing costs, and a lot of times the seller will cover that, you know, just as a thank you.

Unknown Speaker 9:32
So the seller is going to cover the closing costs, is there a maximum or minimum that they can contribute towards a VA loan? So

Unknown Speaker 9:41
that one is a you know, this one is actually pretty nice. So if it's just the closing costs, and they're buying down the rate, the seller can pay for all of it so you don't have to come out of pocket at all. If you pay for your appraisal upfront, then that money can be credited back and you can actually get refund for purchasing your house. Oh, great. Oh, that's super. Yeah. And the main thing between VA these government back loans, VA and FHA is they have to be primary residences for at least 12 months. So

Unknown Speaker 10:13
they have to live in the property for at least 12 months. Absolutely. If they don't, and they get caught and what happens?

Unknown Speaker 10:20
Well, it could be considered mortgage fraud. And you don't want that. Because typically, you can't buy another home at what is it seven years now? Wow. So

Unknown Speaker 10:29
you just look this, like putting your foot in the bankruptcy? quicksand? Yeah, you

Unknown Speaker 10:33
don't want to you don't want to even test that. And people always ask me, like, how do they know? How do they know? Well, all these government agencies talk. So if you change your address with the post office, then the government's gonna be no notified, because the post office is a government entity as well.

Unknown Speaker 10:51
So they're gonna find out if you're not in that property. Yeah. And then they might assume you rented that property out? It

Unknown Speaker 10:59
just take a little research, but yeah, it'll trigger something. And then

Unknown Speaker 11:03
you have a fissure in your mouth. You're on a one foot in the door of the clink? Yes. Yeah. Okay. So, you know, play the game on the up and up, poke Yeah,

Unknown Speaker 11:17
it's not worth it.

Unknown Speaker 11:19
Work is really not. Now that VA loan, what's the minimum or maximum loan limit that a person can receive?

Unknown Speaker 11:28
Well, maximum loan amount with fairway is $2 million. Now, I've seen a lot of places where there is no limit, but it depends on the lender that you go with and how much risk they want to take. But with us, it's 2 million.

Unknown Speaker 11:41
Okay. You're not putting any money down? Do you whack them on the interest rate?

Unknown Speaker 11:46
No, actually, their rates are better than the other two. Wow. Yeah. Yeah, those rights are much better

Unknown Speaker 11:52
than I think when I leave today, I'm gonna go join the

Unknown Speaker 11:56
Wait a minute. No, no, I don't want to

Unknown Speaker 12:02
write, you know, they have some benefits for military. Yeah. Now, let's talk about our first responders and teachers. Okay. What do you offer for those folks?

Unknown Speaker 12:14
There are downpayment assistance programs through Nevada's home as possible. Okay. They have those hero programs. And so and then I have a couple other programs that they look out basically, for our heroes. And so paramedics and doctors and nurses and veterinarians even have a doctor loan program as well. No,

Unknown Speaker 12:38
do they receive better interest rates perhaps, or equally interest rates,

Unknown Speaker 12:43
I would say the rates are competitive, their benefits are more that their student loans aren't counted towards their debt to income. So there's some other benefits that they can get. If it's more than downpayment assistance programs, and they get money. So it just depends on the purchase price and what they qualify for. So

Unknown Speaker 13:05
listen, folks, if you want to know about those first responder loans, yeah, 702-551-9511

Unknown Speaker 13:09
or you can email me at Rachel dot Nichols at fairway. mc.com.

Unknown Speaker 13:19
And you can also call me if you can reach Rachel, which I know you can at 702-809-2949 you have a website, too, don't you? Yes, my website is new home. safari.com. Okay,

Unknown Speaker 13:34
I don't have a website, but I have Instagram at loans by Rachel nicole.com. That's my middle name. Okay.

Unknown Speaker 13:41
Now, let's talk a little bit about how a person gets qualified for a loan. Okay.

Unknown Speaker 13:50
Um, well, the process itself, it's always fun. I'd love the first step when people call and they say, Oh, I just don't know, you know, I don't think I can and then I run everything. And they are so right. Yeah. You never know until you actually start. And I think the conversation itself is you can you can read me, you can ask me whatever you want. We can build some report, you know, and I can kind of let you know, I'm gonna guide you through the whole process. I'm going to educate you as much as I can. I'm gonna make sure when you say, Okay, it's a solid, okay, not like, okay.

Unknown Speaker 14:29
Yeah, some of those blind. Okay. Yeah. And you might get from some type of lender, right,

Unknown Speaker 14:34
right. No, I want to make sure that you're aware because this is the biggest purchase of your life. So I just want to make sure you're comfortable. And you know the terms you're, you're just in the right spot. What as far as the process, so, again, the phone calls, I kind of asked you a few questions. How soon are you looking to move? How long have you been on your job? Do you know where your credit score? is and if so what's on your credit score? What you know your credit report? Or what's making it? Where be where it is? What amount? Are you comfortable with paying? You know, because sometimes people are approved for 3000 a month, let's say, but they're more comfortable paying 2000. So I want to make sure, even if you are approved for that much, you know, you're still comfortable.

Unknown Speaker 15:20
Okay, so that's the loan application part, somewhat,

Unknown Speaker 15:24
because then I send the link and you fill everything out.

Unknown Speaker 15:27
Okay, so this is something that they can do online with you. Yes, I'm

Unknown Speaker 15:31
licensed in six states all together. And so I do a lot of virtual work. I don't, I can't fly all over the world. But yes, I was definitely I send a link and they just click on it, I can text it or email it, they fill it out, they upload their documents. And then once I get everything, I run it and see where we are. So

Unknown Speaker 15:53
you do the loan application and not the loan application. Is there a cost to the potential buyer?

Unknown Speaker 15:59
No, all of our services are free. We get paid by our company once you actually close the loan. So I can work with you for months, weeks, years, if necessary to get you know, in a pre approved position, and then you can, you know, find a

Unknown Speaker 16:17
home what her job is, I feel is more important than mine. Because if you don't have a loan, there's nothing I can show

Unknown Speaker 16:23
you. Right? That's true, then you're blindly looking for property. Absolutely.

Unknown Speaker 16:27
Yeah. Now after you do all the disclosures, you send them to underwriting Yes,

Unknown Speaker 16:33
my company offers pre underwriting. So we know that you're approved as a buyer and you can make an offer with confidence. So we submit your application, your documents to an underwriter, they review everything, you know, they run all the checks to make sure you are you. They check with the Social Security Administration, the IRS, make sure you file your taxes, you know all those things, and then we get an answer back and then we can issue your pre approval letter with confidence. Okay,

Unknown Speaker 17:03
now this pre approval letter, how long is it good for?

Unknown Speaker 17:08
It's good for it says on there 660 days, but honestly, if we have a conversation, and you tell me, I haven't bought a new helicopter, you know?

Unknown Speaker 17:20
That would be under the do's and don'ts

Unknown Speaker 17:23
which we'll get to. But yes, you know, i Aren't your credit report is good for four months. So I have no issue with re issuing a pre approval letter within that time, as long as the credit is still

Unknown Speaker 17:36
good. Okay, so everything has to stay stable, man. Yes,

Unknown Speaker 17:40
yes, definitely. We don't want any surprises, you know, when we go into contract, and you've already been pre underwritten. So I've had people call me and say, oh, you know, I'm getting a promotion at work. Okay, well, great. That's great. What if you're changing jobs, I need to know that too. You know, if you have to get a new car, or you know, yours is broken down, whatever it is, you want to definitely let me know, so that we can make the adjustment.

Unknown Speaker 18:05
Okay. So once we know all this information, then we can start the home. So search. Now, you have a deal here with purchase price negotiation. So what's that about?

Unknown Speaker 18:18
That is Oh, that's you.

Unknown Speaker 18:23
So I thought that might have been me, I just wanted to make sure because I thought maybe you were doing my job?

Unknown Speaker 18:27
No, no, no, no, no, no, no.

Unknown Speaker 18:30
Well, that's when I I'm happy to, you know, meet with you and, and congratulate you on your loan approval. And then I, you know, assume the responsibility of finding your home. Now, we'd like to talk about one more thing here. USDA loans, okay. So what is the USDA loan about? It is another

Unknown Speaker 18:53
government backed loan, primary residence only, there is no downpayment required, and it does require a 620 credit score. Now, different loans have different different I'm sorry, different properties have different terms that they accept. So the listing agent typically knows if this FHA approved conventional VA or if it's in a USDA designated area, and so USDA is is you know, it's friendly, if you want to be on the outskirts of town, or if you want to be in a rural area where there's lots of land, you know, with a home so I know Pahrump used to be one of those areas. I guess it recently well within the last couple of years. Their population went above the maximum. So there from what I understand, it's no longer USDA, but there are certain areas outside of Vegas that are USDA approved. Okay,

Unknown Speaker 19:57
so Um, they have a FICO score of what 620, something like that 620. Now, do they have loan limits for this type of loan?

Unknown Speaker 20:09
So they have debt to income limits. And so as long as your debt to income falls within their guidelines, which are low, I will say that so believe if I remember off the top of my head, it is like 29 and 35, which are, you know, numbers that go deeper than the surface?

Unknown Speaker 20:31
That's incredibly low. Yeah, yeah.

Unknown Speaker 20:35
So it's very low. But it works for people who make, you know, decent money. I have a couple right now they are getting adoption income. And they just recently got pre underwritten and approved for this type of loan using adoption in Yes, yes, yes, that's guaranteed income is non taxable. Same with retirement, Social Security, you know, there's a, there's a few incomes like that. Now,

Unknown Speaker 21:01
what kind of documents do you need for loans from potential buyer. Um,

Unknown Speaker 21:07
in general, it's the financial. So we need, you know, if you're a W two employee, we need your W twos for the last two years, pay stubs for the last 30 days, bank statements or retirement statements that you're going to use for the purchase. So if you have that little $5 account that's been sitting there, we don't need that one. But you can send me all the rest. What else and then your ID, of course, we want to make sure again, that you're you. And then if you're a self employed borrower, we need two years of business tax returns, which could be your personal if you have a schedule C, and then year to date, profit and loss statement. And then a business license or, you know, proof that you have something on file with this Secretary of State.

Unknown Speaker 22:01
We have a lot of people that work in the consumer industry. And, you know, real real to such as myself, that had 1099 jobs. So what kind of documents do you need from those folks

Unknown Speaker 22:17
that would apply? So the two years tax returns and the profit and loss statement? Like your license number? Yeah. So that's really all we need. And then we calculate your net income on your tax returns, averaged over two years. So

Unknown Speaker 22:32
this profit and loss statement, they must be able to keep it in check and keep it current? Yeah,

Unknown Speaker 22:37
you want to make sure you book keep and you know what's coming in and what's going out, because the underwriter is going to require that, that these are for traditional loans. There are other loans, of course, that you know, like the bank statement loan, we don't need the profit and loss statement for that, because they do a calculation based on your deposits and your withdrawals. So there's different loan types, but this is kind of like a general idea.

Unknown Speaker 23:03
Now, let's talk a little bit about students that might want to buy a home. What's the impact of student loans on a potential student buyer?

Unknown Speaker 23:14
So it'll depend on the loan type, because each one has its own calculation. I will tell you the most beneficial one is if they can go conventional, because if they can get an income based repayment plan, I've had clients who've had $250,000 in student loans 253 Oh, yeah, super smart.

Unknown Speaker 23:41
And taking a lot of classes. I, you know, I I just admire people that they stick their neck out like that. Yeah,

Unknown Speaker 23:50
yeah. But yeah, they had $250,000. in student loans. They applied for the income based repayment plan based on their income. And it came back that they had a $0 payment a month, so we didn't have to include their student loans at all. Oh, that's super. Yeah, that's one of the tricks a lot of lenders don't use. But I think it's, it's a big one, it's a really, really beneficial one. For FHA, we use, let's see, half a percent of the balance. So yeah, I do all the math on that. And then for VA, it's half a percent divided by 12 months. So that one's a low, a very low payment amount, but conventional is the one if we can get that $0 payment.

Unknown Speaker 24:38
Now, do they have to show that they graduated with a diploma or

Unknown Speaker 24:42
anything for that one? If they just got out? Yes, they want to make sure they have their diploma because they're going to ask for transcripts if they don't have a work history. Okay.

Unknown Speaker 24:53
Okay, so they asked for transcripts with no work history. Yeah. So basically, once they graduated, whatever or During school, if they wanted to try and buy a home they can do so. Yes. So now you don't have to worry about walking around campus, you can, you know, ride in your car to your home and study late at night, much as you want. Yeah, and still be building up equity for your home that you're living in while in school. Yeah,

Unknown Speaker 25:21
yeah, that's great. Now, let's

Unknown Speaker 25:23
talk about a little bit about people on in the IRS.

Unknown Speaker 25:26
Okay, so they, yeah, a lot of people are scared to apply because they haven't filed their taxes or they owe money. And, you know, they don't know how that impacts it. And all we do is ask you to get on a repayment plan with the IRS. We use that amount that's approved by them to and we add it to your debt to income. So we just work it into the loan and, you know, if you need to make a payment, you know, by the time we close, just make sure you make it on time. But outside of that, I mean, as long as you're on a payment plan you and you owe the IRS then you can buy a home if the numbers work out.

Unknown Speaker 26:07
So don't be afraid of the IRS chasing you around right long as you're set up to make payments. You can buy our home. Yes, yes. Okay. Well, to wrap up a little bit, I want to tell you a little bit about our home that is on the market. This home is priced at 10 me this home is designed for the car enthusiast in mind, boasting space for up to seven cars. In an optional show garage with a turntable. The home is laden with amenities that included movie theater, gym, glass corner office office, a billiards room, in a private casita accessible from the main home or private driveway. The auto record includes space for a basketball half court, with additional opportunities to enjoy a variety of hobbies. This home boasts 7976 square feet, four bedrooms, five and a half baths, and a seven car garage. I can be reached at 702-809-2949 I like to thank everybody for tuning into the show. Anything else you'd like to add and Miss Nichols?

Unknown Speaker 27:29
No. I guess just get you know, my contact information so please give it to him again. Okay, Rachel Nichols from fairway independent mortgage. My number is 702-551-9511 email is Rachel dot Nichols at fairway mc.com.

Unknown Speaker 27:50
Great. Now we look forward to hearing from everybody and anybody that wants some real estate help. We're here to help you. Our next year will be next next month, the six second Sunday of the month. So enjoy your Superbowl day.

Unknown Speaker 28:08
That's right. Go chargers and go round.

Unknown Speaker 28:12
Thank you so much for tuning in. And again, if you need us

Unknown Speaker 28:17
702-551-9511

Unknown Speaker 28:20
or myself, it's 702-809-2949

Unknown Speaker 28:24
Thank you.

Unknown Speaker 28:25
Thank you very much. Thank you for listening to the Las Vegas real estate rule. I can be reached at 702-809-2949 or you can go to my website, new home safari.com And please remember, nothing comes to a sleeper with dreams.

Transcribed by https://otter.ai