Nevada FHA Loans
Being an informed consumer is so important, and today it's especially critical. With the economy in its current state, you probably don't have money to spare and yet there are more options than ever! Nowhere is this more true than in the housing market. Housing prices are lower than they've been in years, and it's a great time to buy a house IF you're prepared and know all your options when it comes to financing. One option, for example, is the Nevada FHA loan program.
Nevada's FHA loans are administered by the FHA (Federal Housing Administration) and are a great option if you're a first time homebuyer who wants a stable loan at a good interest rate. Since Nevada FHA loans are backed by a federal program, interest rates are tied directly to the prime rate, meaning that you'll get a rate that is equal to or possibly less than most traditional bank loans, depending on qualification. Additionally, you'll probably pay fewer points than on the equivalent traditional loan, and you need only to have a 3.5% down payment instead of the usual 20%. Needless to say, this is great news if you're like most people and are having trouble saving a large sum of cash right now.
Nevada FHA loans are intended to ensure that even applicants who couldn't normally qualify for a bank loan may still be eligible to purchase a house, so to this end, the credit standards are slightly relaxed for these loans. Since Nevada FHA loans are obtained at a bank just like a traditional loan, the FHA gives the bank an incentive to participate in the program by providing a guaranty for each loan, which makes the process slightly less risky for the bank. In fact, even if you've declared bankruptcy, you may still qualify for a Nevada FHA loan provided that you've had perfect credit since. This is truly a great program for first time homebuyers who are concerned about a few credit mishaps or stumbles they may have had in the past few years.
Nevada FHA Loan Limits
Check with your lender of choice regarding the details of the Nevada FHA loan program. There are limits on the amount of money you can borrow to purchase a house under the program and you'll need to know how much you can spend on a house before you begin your search. In 2009, the limit for a single family home was $271,050, but this amount is adjusted for areas which have a high cost of living.