5% Down High Rise Condos Loans Now Available in Las Vegas

A local Las Vegas lender is thinking outside the box with three brand new loan programs for Nevada home buyers! These mortgages are truly unique and no other lender is offering them.

1. 5% Down High Rise Loans - No other lender in Nevada has 5% down mortgages for high rise condos. The 5% down program is for owner occupants, but second home buyers can also purchase a high rise with 10% down.
2. 5% Down "Unwarrantable Condo Loans - most residential condos in Las Vegas cannot be financed because of owner occupant to renter ratios. This has put a real damper on condo sales over the past 7 years. Now owner occupants can buy a condo with as little as 5% down in any project that does not have structural litigation, opening up a whole world of possibilities instead of just a handful. And second home owners can have the same opportunity with 10% down.
3. Fresh Start Program - One day out of foreclosure or short sale with 20% down payment! If you've been told before that you had to wait one to seven years to purchase a home, wait no more. This program is designed for owner occupants only, and the interest rates are outstanding.
4. 5% Down Jumbo Loan Program - This program is designed for owner occupants, but vacation home buyers can also get in on it with 10% down.

For more details on each of these exciting new loans, go to New Nevada High Rise Loan Programs. Or call 702-985-7654.

These programs are only for properties purchased inside the state of Nevada by US citizens.

Christmas All Year Round in Las Vegas

by Glen Tonnesen

Christmas is still four months away, but now is a great time to spread the joy of respect and brotherhood to your fellow man.  It may not be Jesus's birthday, but it is somebody's birthday here in town, whether that person is a visitor or resident. 

Let's start with us residents.  We are on our way to a better Las Vegas economy.  We can see the light at the end of the tunnel.  Our time is once again coming.  There are far fewer homes on the market in Vegas now than I have seen in my 31 years here, and prices are definitely going up.  They had to.  We were so undervalued that real estate investors all over the world are once again buzzing about Sin City. 

So now truly is the time to share that UP attitude with all the tourists that come visit our fair city.  We are a tourist town that should go above and beyond to make sure that all the conventioneers, thrill seekers,  party goers, show goers, golfers and gamblers are having the time of their lives.  I have personally been on both sides of the table and have witnessed what a difference some good old fashioned manners or a simple smile can make.  Ask the old timers who worked table for table in the casinos about how a helping hand and a little politeness made their night.  

In the world of celebrities, here we are the celebrity.  Whatever small interaction we share with our tourists, they carry home and tell their family and friends.  I used to work at the Barbary Coast and they had the right idea when it came to F & F.  The whole floor had the "power of the pen" to comp friends and family, and management wanted you to use it.  They knew that the people you brought in would stay and gamble and feel good about it. 

With all the casinos popping up around the world it is NOW that we need to put our best foot forward.  We need to make people want to come back to the best vacation spot in the world.  Enjoy the rest of the summer. 

Buying is Cheaper than Renting in Las Vegas!

By Jamie Cailor

According to the Las Vegas Review Journal dated June 2010, prices in Las Vegas real estate have dropped 19.3 percent in the last year and 39.7 percent in the last five years, the Federal Housing Finance Agency reported. The other part is while you have price cuts in condos for sale, you also have a bigger rental market with people who lost their home, which is causing competition among renters. So there is a higher rental price than we'd expect.

In my opinion, forget renting - buying is cheaper!! Higher rental rates and competition from Las Vegas foreclosures has caused (downward) pricing pressure on sellers, and the cost of ownership is pretty low. Cost of ownership factors in mortgage insurance, real estate taxes, principal and interest, closing costs and other fees.

So if you can afford a down payment and can qualify to buy Las Vegas homes, now is the time to do it. Using a Las Vegas Real Estate Agent to represent you as the Buyer is the best way to go and there is no a cost to you for their time. You do want someone that is responsive to your needs and concerns. A good agent will walk you through the whole purchase procedure and protect your interests. They will also recommend that you get a home warranty which is what you'll want to have, just in case something goes out after you close escrow. Also, having an agent negotiate for you will get you a better deal.

It's possible but unlikely (and creates antagonism) to talk the selling agent into cutting the commission if you go in without a buyer's agent. They end up doing more work dealing with unrepresented people and would actually rather you have your own agent so their loyalties aren't divided. Having your own agent can save you time, money and aggravation, if that agent is worth their salt.

Definitely go for all the inspections. Home inspections should be more than cursory and, while they can't find everything without dismantling the property, they should uncover much that's not apparent to the eye. You'll want to be there for the inspection and do lots of looking yourself. Do your homework and don't be afraid to stand up for yourself and ask lots of questions. Also, if escrow is delayed be sure to do a walkthrough just before closing to confirm nothing has changed. New condos come with a warranty, which could be worth something if it's backed up by a real company (as opposed to a freelance builder). But they're often built cheaply with lots of problems to fix. Also, they're marked up a lot -- if you like Las Vegas condos I would check the market on used condos in good buildings rather than buying a new one at retail. Interview the residents to see what they think of the building, the neighborhood, the construction quality, the HOA.

Agents will help you get your home inspection done and appraisals, so that all you need to do is review it and sign on the dotted lines. Look for an agent that knows the area that you want to live in. Look through your mortgage closing statement closely for mistakes and unexpected charges. And read what you're signing.

But you can't leave it all to your agent - home shopping is like any other task .... it is your responsibility to do your due-diligence. But after all the facts are in and your due diligence is completed, your final decisions should be based on intuition...almost like feeling the vibe of a certain place....and that place connecting to you. Nevertheless, you need to expose yourself to all that is out there in the market, force yourself to see them all, and not settle... which is difficult, because yes, it gets stressful and one can get anxious to just move in and relax. But, just like in most forms of hunting, it's best to: "Collect....then SELECT..."

MGM City Center Grand Opening

Finally, after years of construction and financial turbulence, the $8.5 billion dollar MGM City Center is making its grand debut on the Las Vegas Strip on 67 acres between the Bellagio and Monte Carlo resorts. Las Vegas residents are hopeful that an influx of tourists to the latest mega attraction and over 12,000 more jobs generated by the project will infuse new life into the Las Vegas real estate market and Las Vegas condo sales.

This week MGM Mirage celebrated the openings of several key elements of its long awaited urban lifestyle mixed use development. The Vdara Hotel and Spa was the first to open on December 1st with a gala that was co-hosted by Vanity Fair and attended by celebrity guests Orlando Bloom and Rosario Dawson. Vdara features 1,495 condo hotel suites, an 18,000 square foot two-level spa and salon, a world class fitness facility, and over 10,000 square feet of meeting space.

Next to open on December 3rd was Crystals, the City Center's 500,000 square foot retail and entertainment complex. Crystals shopping mall features high-end retailers like Louis Vuitton, Hermes, Prada, Christian Dior, Bulgari, Van Cleef & Arpels, Tiffany & Co., Mikimoto and Ermenegildo Zegna, as well as five gourmet dining restaurants. “Originally, when we put together a portfolio of all the stores, we realized this is a niche that the market is missing — a selection of retailers under one canopy that are extremely high end, and that’s what we went after,” Crystals Vice President and General Manager Farid Matraki said. Matraki also added that it was a priority to capture brands not already in the market.

Then on December 4th the latest Mandarin Oriental with 392 guest rooms, 227 private luxury condominium residences, a 27,000-square-foot spa and 12,000 square feet of meeting space. The condominiums in this most recent edition of the internationally acclaimed Mandarin Oriental Hotels are already 93% sold out, with price tags starting at over $1M for a one bedroom residence.

And on December 16th the center piece of the City Center, the massive 4,004 room (including 568 suites) Aria Hotel and Casino, will debut with its own grand opening celebrations. I will be attending a special VIP party that night and expect to have lots to report later next week on all the amenities which include: 150,000 square feet of gaming, three primary pools with 50 cabanas and one European-style pool, 16 restaurants and 10 bars and lounges, including a nightclub, an 80,000 square foot two level spa and salon with 62 individual spa treatment rooms and 55 salon stations, and an 1,800 seat theater that includes the celebration of the timeless musical legacy of Elvis Presley from Cirque du Soleil.

If the project takes off as expected, by spring new employees of the MGM City Center should feel confident enough in their jobs to fuel a fresh spate of home buying, just in time to take advantage of the first time home buyer tax credit and the affordable homes for sale in Las Vegas. With the number of Las Vegas foreclosures at an all time low, we may even see price increases during the first half of 2010.

Canadian Financing for Las Vegas Condos!

We have discovered a great lender for Canadians wanting to buy Las Vegas homes, either as a second home or as an investment! This lender charges no loan discount points or origination fees, and the rates are the same as what a US citizen can obtain.

Lately all our blog posts have been about finding Las Vegas mortgages for our clients. With the high rate of national foreclosures, many traditional venues and programs have been discontinued, leaving buyers, even those with substantial down payments, in limbo. It has truly been a challenge for us to find mortgage lenders with reasonable down payment and rate structures.

In our never ending quest for foreign national financing for Las Vegas real estate purchases, we have literally stumbled across a lender who is able to loan money at competitive rates to Canadian citizens. This lender is able to use Canadian credit scores and income to provide mortgage loans for the thousands who are trying to flee a harsh winter climate for a few months each year.

General program guidelines for this lender are as follows:

The program is available for both second homes and Las Vegas investment properties. The minimum down payment is 20%, although the best financing on investment properties would be with a 25% down payment.The programs that are offered are full qualifying loans. Available are the 3/1, 5/1, 7/1, and 10/1 Adjustable Rate Mortgages. Each is a 30 year loan with a 30 year amortization locking in the loan rate for the short term of the loan. For example, if you got a 3/1 ARM, your start rate would be locked in for three years. (Rates are typically lower for shorter loan locks.)

The typical documentation list is as follows. Based on your own individual circumstances, more documentation may be required:

2 years personal tax returns including all pages and schedules
2 years T4s2 years corporate tax returns including all pages and schedules (if self employed)Most recent 2 months bank statements reflecting name, account number, and 2 month transaction history
Most recent 1 month retirement/investment account statement reflecting name, account number, and current balance.
Mortgage statement on any property owned in borrowers personal name reflecting name, property address, current balance, current interest rate, and current payment.
Line of credit statement on any property owned in the borrowers personal name reflecting: name, property address, current balance, current interest rate, current payment, and available balance.
Lease agreement for any rental properties.Clear copy of passport to include the signature page and picture page.

Two unique benefits of this lender are their rate renegotiation prior to closing and their loan modification process.The rate renegotiation is available to a client in the event that they lock their rate in but before closing rates drop. The borrower has the ability to renegotiate the rate to that day’s pricing with a modest premium paid.The loan modification process would come in to play should rates drop after the borrower has closed the loan.

There is a one time modification available to the borrower. It allows them to simply lower the rate with no documentation, appraisals or closing fees that a refinance would incur. It is one page that the client signs and it gets recorded behind the deed of trust. Again, a modest fee is paid for this privilege should the borrower elect to take advantage of it.Like all loan programs, there is no guarantee on how long this one will last.

So if you are a Canadian citizen who has been thinking about purchasing property in the States, call us right away so we can put you in touch with this lender. 702-985-7654 Once your financing is in place, we can find you a phenomenal STEAL on Las Vegas foreclosures! There are some incredible deals to be had in the Las Vegas high rise condo market.

Las Vegas Condos and Condo Hotels – Where are the Deals?

Like the rest of the housing market nationwide, Las Vegas high rise condos and condo hotels have taken a “hit” in value the past couple of years. But while residential high rise condos are still moving along, albeit at reduced prices, condo hotels owners are faced with a serious dilemma.

Back in 2004 and 2005 every major lender had financing in place for condo hotel purchasers, requiring anywhere from 20% to 30% down payments. Since most developers got at least a 20% deposit on their contracts for projects under construction, borrowers thought they had all the cash they would need when the time came to close three of four years down the road.

But with the current economic conditions and tightened mortgage lending guidelines, currently there are NO lenders willing to finance condo hotels, even with a 50% or 60% down payment, verifiable income and perfect credit.

In Las Vegas, Palms Place and Trump Tower, both condo hotel projects that completed construction in 2008, the developers have not been able to close escrow on many of their units that were under contract. Would be buyers are trying to find partners with cash, someone to take over their contract, or simply walking away from their investments. Many buyers are being forced to give up over $150k in deposit money and would be delighted to get back even a fraction of that amount.

While the situation is dire for these buyers caught up in the mortgage meltdown, this is the perfect opportunity for anyone with cold hard cash to pick up prime Las Vegas real estate for less than 2004 prices! Owners at Palms Place (those who closed before the condo hotel loan programs were discontinued) report being VERY happy with the income generated on their units from the rental program. Palms Place, adjacent to the Palms Hotel, is a very “happening” resort destination. The Playboy Club, fashionable restaurants, entertainment venues and MMA sporting events keep the resort full and it has a very low vacancy rate.

Even at the MGM Residences, most of which closed before lending was shut down, there are numerous re-sales and foreclosures available at incredible prices. Since they can only sell to cash buyers, there are definitely steals to be found.

What of the MGM City Center and the Cosmopolitan, two condo hotel projects that are due to come online in late 2009 and early 2010? The Cosmopolitan, with what is unarguably the best location on Las Vegas Boulevard, was recently taken over by Deutsche Bank. And MGM City Center next door is owned in large part by Dubai World. Both these entities have “deep pockets” and their locations are superior. Word on the streets is that by the time these units are ready to close, the developers will have their own in-house financing in place. Also by that time the economy is expected to recover substantially.

But in the meantime, those with cash and aspirations to own a piece of Las Vegas are taking advantage of the times. Many are negotiating with the buyers under contract who cannot close to take over their contracts for a fraction of the original deposit. Assignments on these contracts are subject to the developer’s approval, but cash buyers are almost always approved.

Since these buyers have not yet closed, these properties are NOT in the Las Vegas MLS system. High rise agents around the city do have lists of potential assignments as well as foreclosures in the projects mentioned above. Eventually the condo hotel market will rebound, and those that are buying now, at the bottom, will make out well. To find out about some of these great Las Vegas condos, please call us at 702-985-7654 and we will put you in touch with a high rise specialist.

Financing Foreign Investors for Las Vegas Mortgages

With the dollar expected to rise against foreign currencies later this year (that trend has already started), foreign investors are hurrying to purchase real estate in the US while their dollar goes further. Most of these investors are targeting the Las Vegas real estate market in particular, where the sharp decline in prices (due to the high amount of Las Vegas foreclosures) and the world class amenities have made it an attractive get-away destination. In particular, Canadian buyers are looking to Las Vegas homes as a vacation retreat from their harsh winter climate.

Most banks will not loan on real estate outside of their own country. With all the recent shifts in the credit markets, the qualifying criteria has changed for mortgage loans in the United States across the board, including those to foreign purchasers. Prior to this year, a foreign national could obtain financing from US banks as long as they had 35% to put down with no or limited documentation. Now US mortgage lenders are requiring full documentation of income and assets on all mortgage loans without exception, though the down payment requirements have dropped.

A citizen of a country other than the US can obtain a loan for property in the US based on what classification they fall under. A permanent resident alien is a foreign national who has been granted the right to work in the US permanently and who has been given a US social security number. A permanent resident alien can purchase property under the same guidelines as a US citizen. They can get a loan with as little as 5% down payment for a primary residence, either on a fixed rate or adjustable rate mortgage at the current interest rates available to US citizens.

All other foreign nationals, including those with temporary work visas, are required to put down a minimum of 25% for properties under $650,000 or 35% for properties over $650,000, whether the property is a primary residence or a rental property. Lenders will also require the equivalent of a US TRW rating as well as full documentation of their employment income and assets. In addition, the down payment money must be “seasoned” in a US bank for at least 60 days prior to the close of escrow.

These loans to foreign nationals are only currently available as adjustable rate mortgages or ARMS. The fixed rate terms can be for 3, 5, 7 or 10 years and interest rates are currently running between 7.5% and 8.5% with approximately 5 loan discount points prepaid for the amount of the loan (points can vary on a day to day basis just like interest rates). Each point is the equivalent of 1% of the loan amount, so on a $100,000 loan 5 points would be $5,000.

Another alternative is for the foreign national to obtain an equity credit line on their property in their home country and come to the US with cash in hand. Cash offers are very strong, and enable the buyer’s agent to negotiate the best possible price on behalf of their client.

For more information on getting qualified for a Las Vegas mortgage and to receive the latest listings on great deals in Las Vegas new homes, high rise condos or MLS listings, please contact our office at 702-985-7654 or email us at sold@greatlasvegashomes.com.