Seller Concession Cheat Sheet

[SAVE THIS CHEAT SHEET!!]

This will come in handy while navigating going forward in 2024...

 

Creative ways to use excess seller contributions

While seller contributions are limited to actual closing costs, you can constructively increase your closing costs to use up all available funds.

Imagine the seller is willing to contribute $7,000 to buyer closing costs but they only add up to $5,000. That's a whopping $2,000 is on the line of unused money. We don't want to leave that on the table!

In this situation, ask your lender to quote you specific costs to lower the rate. You could end up shaving 0.125%-0.25% off your rate using the excess seller contribution.

You can also use seller credits to prepay your homeowners insurance, taxes, and sometimes even HOA dues. Ask your lender and escrow agent if there are any sewer capacity charges and/or other transfer taxes or fees that you could pay for in advance. Chances are there is a way to use all the money available to you.

You can even use seller credit to pay upfront funding fees for government loan types like FHA.

Use seller contributions for upfront FHA, VA, and USDA fees

All government-backed loan types allow you to prepay funding fees with seller contributions.

FHA loans require an upfront mortgage insurance payment equal to 1.75% of the loan amount. The seller may pay this fee as part of FHA seller concessions. However, the entire fee must be paid by the seller. If you use excess seller credit, but it's not enough to cover the entire upfront fee, then you cannot use the funds toward the fee.

VA loans allow the seller to pay all or part of the upfront fee (2.3%-3.6% of the loan amount). The fee counts towards VA's 4% maximum contribution rule.

USDA requires an upfront guarantee fee of 2.0% of the loan amount. The buyer can use seller contributions to pay for it.

What this means for you...

1- You will need a signed buyer broker agreement to protect yourself.

2- Time to hone in your skills and show your value.

3- Partner up with a lender that can help you navigate and succeed in today's market. 

Reach out if I can help!

Aundrea

NMLS 333739
702-326-7866

info@aundreabeach.com
www.AundreaBeach.com

I’m going to wait until interest rates drop before I purchase a new home

Internal voice ...

“I’m going to wait until interest rates drop before I purchase a new home”… Sound familiar? 

This is probably something you have heard or even maybe said to yourself over the last few years, right?

Here is the reality, housing prices have risen every year for the last 11 years, and more than likely will continue to rise.

In 2021 alone, housing prices increased by a jaw dropping 18 percent, the highest on record. Even last year they still rose on average, 2.88% and that’s WITH interest rates on the rise.

Truth is, if you keep waiting for interest rates to decrease, if the last 11 years say anything… sure, you may have a lower interest rate but that won’t matter much when you’re spending (on average) 2.88% more on the cost of that house.

In conclusion, start getting ready now!
So, look for the right opportunity to take the first step in Home Loan Readiness (such as this article!), you can always refinance later when rates drop!

Get ahead of all those waiting, hoping and wishing for things to change and get ready NOW.

REMEMBER: Marry the home, date the rate, divorce the landlord!

As a homebuyer, understanding this relationship can help you make informed decisions about buying a home, and with the prediction of rates dropping this year, it’s crucial to have a leg up in the race to become a homeowner.

Get prepared for the market boom when rates drop by making sure you have everything you need to hear the words “You're Pre-Approved” by working with CMG!

Click Here For Your FREE Consultation!

During your FREE Personalized Consultation, we will walk you through what steps you need to take to become approvable on your home loan specific to your current financial situation.

CMG provides ALL the tools you need to qualify for your loan FASTER.
Failing to plan is planning to fail.

CMG provides a detailed action plan to help you overcome the major obstacles preventing you from getting your loan:

✅ Debt to Income
✅ Credit
✅ Savings/Down Payment
✅ Documentation

Let us help you navigate through the home buying process so that when you are in the best position possible, we can get you back over to your lender and get you that PRE-APPROVAL!

How to dispute your high property taxes in Las Vegas, NV

Hey there, fellow homeowner! Feeling the pinch from those towering property taxes? Join the club. Negotiating the purchase price of your cozy abode is one thing, but dealing with those seemingly non-negotiable property taxes? That's a different story.

Here's a step-by-step approach for homeowners dealing with high property taxes:

1. Understanding the Concerns: As homeowners, the weight of high property taxes can be a considerable concern. While negotiating the purchase price of a property is within one's realm of influence, the amount allocated for property taxes is, unfortunately, not negotiable.

2. Awareness of Challenge Opportunity in Nevada: In the state of Nevada, homeowners possess a specific window of opportunity to challenge their property tax assessments. This window is confined to a one-month period, commencing on December 15th and concluding on January 15th of the ensuing year.

3. Grasping the Assessment Methodology: It is pivotal to comprehend the methodology employed in determining property taxes. The Clark County Tax Assessor's website elucidates that the taxable value of real property equates to the market value of the land and the current replacement cost of improvements, adjusted for statutory depreciation.

4. Understanding Tax Rate Variations by District: Different tax districts exist within Clark County, each with its respective tax rate. Familiarization with the specific tax district pertinent to one's property is crucial. This information is obtainable from the tax bill and can be cross-referenced with the provided chart on the assessor's website, facilitating the calculation of annual tax obligations.

5. Recognition of Assessment Adjustments: Over the years, property values have been subject to fluctuations, particularly during market downturns. In response to the market crash, the Clark County Assessor conducted reassessments to align property values with the prevailing market conditions. However, discrepancies may still exist, necessitating a diligent review.

6. Validation of Property Information: Homeowners are advised to verify the accuracy of property information maintained by the assessor. Factors such as square footage, room count, and bathroom count should be meticulously scrutinized for discrepancies. Comparative analysis with neighboring properties of similar size and age can unearth potential errors in the assessor's records.

7. Determining the Property's True Worth: Relying on reputable sources and steering clear of online valuation tools, homeowners are encouraged to ascertain their property's true market value. This involves gathering comparative data of recently sold properties similar in nature, a task best undertaken with assistance from a reliable Realtor or a certified appraiser.  If you need a recommendation, let us know. 

8. Initiating the Appeals Process: When armed with substantiated evidence of a discrepancy between the assessed value and the property's actual market worth, homeowners should take the initiative to challenge the tax assessment. The County Assessor's office offers the necessary appeal forms, obtainable by calling (702) 455-4997. The completed paperwork must be submitted before the January 15th deadline.

9. Exploring Further Appeal Options: In the event of an initial appeal rejection, homeowners possess the option to escalate their appeal to the State Board. If this route proves insufficient, a final recourse lies in appealing to the District Court.  Appeals can be initiated here. 

10. Empowering Homeowners: Equipped with accurate information and a thorough understanding of the appeals process, homeowners are now empowered to navigate the landscape of property taxes effectively. Taking proactive steps to challenge unjust tax assessments is essential in upholding financial prudence and fairness in property taxation.

Seize the opportunity to ensure that your property taxes align with the true value of your home and contribute to a just tax system.

Here is the tax abatement page with Clark County for you to look over.

Ready to take charge and tackle those taxes like a pro? Seize the moment and let's get those property taxes in line! 🏠💪

To your success,

Aundrea Beach-Greco, CMPS 

Licensed Mortgage Loan Officer | NMLS 333739

702-326-7866 

info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Can I Buy A Home with Student Loan Payments?

 

Millions of students across America are struggling to repay their student loan debt and student debt ranks as the second-highest consumer debt category, with only mortgage debt being higher. It’s also the fastest-growing segment of U.S. household debt, having grown nearly 157% over the past 11 years. It’s a trillion-dollar problem in the U.S. and it keeps growing.

Most student loans in general are federal student loans that you took out while attending college however there are some private student loans backed by banks, credit unions, etc.  At the time, it sounded like a great option to help with school expenses or being able to attend college at all. They don't tell you the pros and cons when you apply and you certainly didn't understand the ramifications to your credit in the future if you couldn't pay the payments once you graduated.  

A federal student loan is a federal debt that will NEVER go away. With that said, those student loans will need to be in good standing to buy a home. Old loans, late payments and missed payments can be overcome, but student loans in collection will have to be resolved and put back into repayment status. 

Student loans don't affect your ability to get a mortgage any differently than other types of debt you may have, including auto loans and credit card debt. Most loan programs have a debt-to-income (DTI) limit. DTI is the main factor lenders use to determine how much they are willing to let you borrow, and student loans are part of that assessment. This includes your current monthly debt payments and your future mortgage payments. Check out your buying power with our new tool!

Good News! For student loans not in active repayment (forbearance, deferment, income-based repayment plan), the guidelines state we use 1% to 1/2% of the unpaid balance unless you have an actual payment that is being reported on your credit report. 

Student loan debt can be a drag, especially if you’re trying to buy a house. Fortunately, there are options. By taking advantage of the right loan programs, working on your credit and DTI and teaming up with the right partners, you can improve your chances significantly, not to mention lower the cost of buying a home both up front and for the long haul.

Contact us today to see if you can qualify to buy a home even with your student loans! 

Check out our pre-qual tool!

Aundrea Beach-Greco 

Mortgage Lender, CMPS 

NMLS 333739

📱 +1 702-326-7866

📧 info@aundreabeach.com

🌐 www.AundreaBeach.com

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Aundrea Beach-Greco, CMPS. Licensed Mortgage Loan Officer. NMLS 333739

702-326-7866 info@AundreaBeach.com

Find me online www. AundreaBeach.com

Apply online at www.iLendLasVegas.com

Which FHA 203(k) Home Loan should you choose - Limited or Standard?

You've found a home in a neighborhood where you've always wanted to live. And you can snatch it up at a good price. So what's stopping you? Could it be the outdated appliances, dark brown exterior, and wall-to-wall carpeting? It might not be your dream home just yet, but with an FHA 203(k) renovation loan, it could be.

There are many ways to finance a home construction projects but the two versions of the FHA 203k program have emerged as a popular choice among today’s home buyers and homeowners wishing to make home improvements, especially when they don’t own the home yet.


The two FHA programs are known as the Standard 203k, and the Limited 203k.

With this loan you can purchase the property and get the extra funds you need to remodel, repair, and renovate. It's unique because you can borrow the funds you'll need based on what your house is expected to be worth after the renovation is complete. 

(The 203(k) can also be used to refinance your current home and make renovations.) 

The FHA 203(k) loan is insured by the Federal Housing Administration (FHA), and offers two options: Limited and Standard. Finding the one that's right for you depends on how much you want to spend and what you intend to do. 

The differences between the Limited 203(k) and the Standard 203(k) Structural Repairs:

LIMITED: Minor remodeling and non-structural repairs. 

STANDARD: Major rehabilitation or when repairs are structural or involve landscaping. Examples include jacking up your house to replace the sill plate or knocking the house down to rebuild it (you must leave the foundation). HUD Consultant. 

LIMITED: Does not require a HUD consultant. 

STANDARD: Requires the use of a HUD consultant. He will draw up the paperwork and work with you and your contractors to get a write-up before the appraisal and ensure the required renovation is completed. (Your loan officer can work with you to obtain the services of an experienced HUD-approved 203(k) consultant). Cost. 

LIMITED: Total renovation costs cannot exceed $35,000. There are no minimum costs. 

STANDARD: Your repairs and renovations can go above $35,000. There is a minimum repair cost of $5,000. 

Eligible repairs you can make with a Limited 203(k) Repairing or replacing the roof, gutters or downspouts Repairing or replacing HVAC, heating, plumbing, or electrical systems Repairing or replacing flooring Minor remodeling Indoor or outdoor painting Replacing appliances Accessibility upgrades Abatement of lead-based paint Repairing or replacing decks, patios, and porches Waterproofing or finishing a basement Weatherization Eligible repairs you can make with a Standard 203(k) Plumbing, electrical, heating, and cooling improvements Structural changes Storm shelter additions Appliance and HVAC upgrades Roofing alterations Large landscaping and site improvements Sewage and septic improvements Site conversion (from a single unit to multi-unit property, for example) Site relocation Accessibility upgrades Of course, there are other nuances that differentiate the Standard from the Limited. 

Which 203k Loan Should I Choose?

The two 203(k) programs also vary in what type of work can be performed. The FHA program guidelines include a comprehensive list.

This is the work which is allowed via the FHA 203(k) Limited:

• Repair/replacement of roofs, gutters and downspouts
• Repair/replacement/upgrade of existing HVAC systems
• Repair/replacement/upgrade of plumbing and electrical systems
• Repair/replacement of existing flooring
• Minor remodeling which does not involve structural repairs
• Exterior and interior painting
• Weatherization of windows and doors, insulation, weather stripping.
• Purchase and installation of appliances
• Improvements for accessibility for persons with disabilities
• Lead-based paint stabilization or abatement of lead-based paint hazards
• Repair, replacement or the addition of exterior decks, patios, and porches
• Basement remodeling which does not involve structural repairs
• Basement waterproofing
• Window and door replacement and exterior siding replacement
• Well or septic system repair or replacement

And, this is the work allowed via the FHA 203(k) Standard:

• Major rehabilitation, such as the relocation of a load-bearing wall
• New construction, including room additions
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar “site amenity” improvement
• Any repair requiring a work schedule longer than three (3) months; or rehabilitation activities that require more than two (2) payments per specialized contractor
• Improvements that require a plan reviewer
• Improvements that result in work not starting within 30 days after loan closing; or cause the owner to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted

As a recap, the Limited lives up to its name — less paperwork for the borrower, easier for the lender to approve, and a simplicity in the draw schedule. The Standard 203(k) is meant for “bigger jobs.”

Both loans can be a great option for those looking to buy and rehabilitate before moving in the house.

If you have more questions, or want something concrete in your hands, give us a call. CMG is ranked as one of the top FHA 203(k) lenders in the nation.

 *This is not a commitment to lend. Not all borrowers will qualify; contact us for more information on fees and terms.

Getting Down Payment Assistance to Buy a Home [2022]

 

[2022] Homeownership is within your reach! Now is the best time to learn about adding down payment assistance (DPA) for qualified borrowers who have good ratios and decent credit but lack funds to purchase a home. There are more DPA programs available now for FHA, conventional, USDA and VA loan products than ever before. The best reason to know about these programs is that DPA funds can cover your down payment and usually a good amount of the closing costs that sellers aren’t willing to pay in today's heated housing market. This makes buyers with DPA more competitive than buyers who need closing costs covered.   But DPA programs don’t come without challenges. Often, a DPA issue can arise during the processing of a loan and if the 2nd mortgage for DPA funds cannot be approved, the only remedy to complete the deal may be a gift at the last minute.   Some of what you should be aware of...   In comparing FHA 96.5%LTV and conventional 97%LTV loan programs with DPA added, we found that when a borrower’s credit score is over 700, the combined conventional mortgage payment is usually lower than the combined FHA payment due to lower private mortgage insurance (PMI). The closing costs compared were just slightly higher for the conventional loan. Borrowers who need DPA to help with home purchase costs need to have funds in the bank. For borrowers who have lower credit scores and are tight or slightly over on the front FHA ratio, one to two months of reserves may be needed to get the loan approved through automated underwriting required for many programs. This is because the higher combined loan to value (CLTV) of the first and 2nd DPA mortgage poses a greater risk.  Be careful ...  Some programs income criteria call for area median income (AMI) that clients need to qualify for with each DPA. Some programs require that only the income of the borrower applying for the loan should be analyzed, while other programs require household income for all members of the family to be used. Know your geographic area ... some DPA programs can provide funds for on a home purchase only within a certain area. Community Reinvestment Act (CRA) DPA funds are available for home purchases within a mapped area.  Make you you check this out. There may be program differences for different property types, such as a manufactured home versus a single-family residence (SFR).  On any DPA program, always ask your lender UPFRONT if there are any overlays or unique underwriting criteria for the specific program. Know that sometimes the 2nd mortgage payment will need to be included in qualifying debt ratios. The BEST TOOLS to have in your toolbox when looking for DPA: For a fee, check out Down Payment Connect to see if you are eligible for DPA! Within Down Payment Connect, you get an incredibly detailed program overview of over 2000 county, city and state DPA programs and many proprietary programs across the U.S.   As you can see there are a lot of details to put in order to better utilize DPA programs for your home purchase.  If we can assist you, please contact us at aundreabeach.com or call us at 702-326-7866.

Down Payment Assistance

FHA Approved Condos (NEVADA)

 

FHA loans are the most popular loan program for first-time homebuyers. Borrowers can take advantage of down payments at little at 3.5% and they allow for more lenient credit guidelines. Since home prices are steadily creeping higher, first-time homebuyers gravitate towards condos and townhomes, but find out quickly that it can be quite difficult to find condos that are on the FHA approved list for FHA financing.

Single family homes do not need to be approved by FHA like condos and some townhomes, so if you are looking to use an FHA loan on a single family home, your good to go!   

Here is a quick list of the FHA approved condominium communities. Please keep in mind this is subject to change and expire, we will do our best to stay up to date with the FHA approved list.  If you are ever in question, best to contact us first!

1. Acacia (also known as Altair at Green Valley) 
2. Affinity in Summerlin - BRAND NEW condos & townhomes 
3. Canyon Willow
4. Canyon Willow Pecos
5. Club Marbella
6. Decatur Mountain Villas
7. Duck Creek Village
8. Echo Bay
9. Echo Glenn
10. Elan 
11. El Parque
12. Garden Terrace in Summerlin
13. La Posada in Summerlin
14. Mar-a-Lago
15. Mariposa
16. Newport Lofts
17. Pacific Deerfield
18. Pacific Legends West
19. Red Hills in Summerlin
20. Solana Del Mar at Painted Desert
21. Turning Point at Painted Desert
22. Serenade in Henderson
23. Winchester

If you have any questions about an FHA approved condominium, feel free to contact us. 

Aundrea Beach-Greco
Mortgage Advisor, CMPS
NMLS 333739
702-326-7866
info@aundreabeach.com
www.AundreaBeach.com

Click to view the Clark County FHA approved condos: https://entp.hud.gov/idapp/html/condo1.cfm