Mar 15 2008
FHA Loan Limit for Las Vegas Now $400,000
HUD’s Federal Housing Administration (FHA) is temporarily increasing its loan limits (until December 31, 2008) in Clark County, NV to $400,000 (from $304,000) as part of an economic stimulus plan that will enable more families to qualify for a safe, affordable mortgage.
FHA loan guidelines are more relaxed than conventional loan guidelines; this includes less strict regulations about past bankruptcies and/or foreclosures, job requirements, use of alternative credit, and debt-to-income ratios.
FHA Loans have several advantages over conventional loans, including lower down payments and more relaxed credit-qualifying guidelines. The federal government created FHA loan programs to encourage homeownership throughout the country. The FHA does not supply the loan; it simply insures the loan to limit the risk to the lender.
Benefits of an FHA loan include:
- A 3% down payment, as opposed to a 5% down payment on traditional loans
- Low monthly mortgage insurance
- Low closing costs, which are regulated by HUD
- No credit score requirements
- Qualify for a loan two years after a bankruptcy
- Qualify for a loan three years after a foreclosure
- A non-occupant co-borrower can help buyer qualify for purchase
- Buyer can receive 100% gifted funds for down payment and closing costs from family member
- Seller can contribute up to 6% toward closing costs
Good luck in Vegas- I really hope FHA spurs a little activity.