Las Vegas Area Real Estate News, Market Trends and Community Events!

 

You’ll find our blog to be a wealth of information, covering everything from local market statistics and home values to community happenings. That’s because we care about the community and want to help you find your place in it. Please reach out if you have any questions at all. We’d love to talk with you about about Las Vegas Real Estate.

Dec. 29, 2020

Las Vegas home prices continue steady climb despite pandemic

The ongoing coronavirus pandemic has done nothing to quell the upward trajectory of home prices in Southern Nevada.

 

The median price for an existing home in the area was $345,000 in November, according to a report released by the Las Vegas Realtors trade organization today.

The monthly figure, for the sixth month in a row, set a new all-time record.

It’s a puzzling trend for some amid one of the most economically challenging years in recent Nevada history.

“Like other places around the country, we’re seeing multiple offers on properties listed for sale,” said Tom Blanchard, the Realtor association’s president, in a statement. “The supply of available homes is very low, and demand is high. I hope the new year will bring some additional inventory as local homeowners start to feel more comfortable moving.”

At the end of last month, according to the trade group’s numbers, about 8,400 existing homes in the Las Vegas area were listed for sale.

That’s a drop of 19% from November 2019 and 11% from October of this year.

Vivek Sah, director of UNLV’s Lied Center for Real Estate, said it’s likely that many people who may have considered selling their home recently have taken advantage of coronavirus mortgage forbearance opportunities.

Those programs have allowed homeowners suffering through economic hardships — tens of thousands of workers in Southern Nevada were furloughed or laid off earlier this year — to, at least temporarily, avoid foreclosure while not making payments.

“Those programs have kind of helped the market stay afloat,” Sah said. “Those programs are starting to expire at the end of this month. Back in 2008 and 2009, people who lost their jobs, many of them, had no choice but to hand over their keys. That brought a lot of supply to the market.”

Sah said that at the start of the pandemic, he figured home prices would drop by 5% or more as the year went on.

He added that a steady supply of new Nevada residents coming here from other states — think California — has also helped to keep existing home prices up.

“I think we’ll start to see some things change at the end of December, unless the federal government keeps those forbearance programs in play,” Sah said. “At some point in time, these loans that are not being serviced, the lenders will start to ask for payment. It’s at that point that you’ll see some movement because some people will be forced to sell.”

Blanchard said the housing market in Southern Nevada could “easily” absorb four times the number of homes available for sale now without “tilting the scales of meeting our current demand for housing” in the area.

LVR reported that more than 3,700 existing homes, townhomes and condos were sold in November. Sales were up 26% from November 2019 for single-family homes and 35% for condos and townhomes.

The median price for a home in the valley last month was up 12% from November 2019.

Local condos and townhomes sold last month for a median price of just under $200,000, which represented a jump of 14% from November 2019.

At this pace, LVR figures for December could show that the median price for a Las Vegas home might be more than triple what it was at one point in 2012, when it bottomed out at $118,000 following the Great Recession.

Founded in 1947 and previously known as the Greater Las Vegas Association of Realtors, the LVR group is made up of about 15,000 area agents.

Dec. 22, 2020

Housing Market Crash: Will Prices Crash in 2021?

 

The US housing market is far from crashing in 2020 or 2021. In fact, it continues to play an important supportive role in the country’s economic recovery. Current economic conditions resemble a “swoosh” pattern, with the initial impact from the lockdown followed by a gradual recovery as the economy reopens. Mortgage rates and slow but steady improvements to the job landscape continue to propel confidence for first-time buyers.

If the reopening is followed by another wave of the COVID pandemic leading to a shutdown, the “double-dip” is a possible result (W-shaped recovery). In either case, the overall outlook points to declining rent growth in the short term followed by a gradual period of recovery.

Let's first see how various consumer surveys are responding in wake of this crisis. The Federal Reserve Bank of New York's Center for Microeconomic Data released the November 2020 Survey of Consumer Expectations, which shows that households are reporting a decline in income and spending growth expectations and a mixed labor market outlook.

Median inflation expectations in October decreased from 3.0% to 2.8% at the one-year horizon and remained unchanged at 2.7% at the three-year horizon. The decline was driven by higher-income respondents (household income above $100,000).

Median home price change expectations, which have been trending upward after reaching a series' low of 0% in April 2020, were unchanged at 3.1% in October.

Median one-year ahead expected earnings growth remained unchanged at 2.0% in October, for the third consecutive month. The series remains well below its 2019 average level of 2.4%.

Median expected household income growth decreased by 0.3 percentage point to 2.1% in October. Since February, this series has moved within a narrow range from 1.9% to 2.3%, well below its 2019 average of 2.8%. The decrease was driven by respondents without a college education.

Median household spending growth expectations decreased from 3.4% in September to 3.1% in October, which was the same as its February 2020 level.

Mean unemployment expectations—or the mean probability that the U.S. unemployment rate will be higher one year from now—decreased from 36.4% in September to 35.4% in October, its third consecutive decline. The decline was driven by respondents without a college education.

The pace of existing-home sales has jumped to a level not seen since 2006 and, importantly, was followed by strong pending sales, purchase mortgage applications, and construction data. As Federal Reserve has made clear that it has no intention of raising interest rates soon, many households are seizing the opportunity to refinance their existing mortgages.

Historically, low-interest rates are also an inducement to buy homes, but slow supply growth continues to result in high levels of home price appreciation, which is offsetting some of the affordability benefits of the lower rate environment, according to the Fannie Mae Economic and Strategic Research (ESR) Group.

The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 0.7 points in October to 81.7, rising for the third consecutive month and continuing the rebound from late spring. The index which measures housing attitudes, intentions, and perceptions, using six questions from the National Housing Survey® (NHS), is a good indicator of the recovery and buyer and seller behavior.

Year over year, the HPSI is still down 7.1 points but it has recovered more than half (60%) of the early pandemic-period decline, mirroring the strong home purchase activity of the past few months.

Three of the six HPSI components increased month over month, with consumers reporting a more optimistic view of both home buying and home-selling conditions, in addition to expecting mortgage rate declines. However, consumers also reported greater pessimism regarding their personal finances and employment outlook.

The latest survey finds out that those who think it’s a ‘good time to sell a home’ feel so because of the following reasons:

 

29% of them feel so because of high home prices.

24% of them feel that it is a good time to sell because of favorable mortgage rates.

7% feel it's easy to qualify for a mortgage.

16% feel that as not many homes are available you can sell your home fast.

11% feel that current economic conditions are conducive to selling a home.

The latest survey finds out that those who think it’s a ‘good time to buy a home’ feel so because of the following reasons:

51% of them feel that it is a good time to buy because of favorable mortgage rates.

13% of them feel so because of low home prices.

12% feel that many homes are available for buyers.

11% feel that current economic conditions are conducive to buying a home.

3% feel it's easy to qualify for a mortgage to buy a home.

 

Zillow's market pulse report dated November 20, 2020, shows that the existing home sales continued to surge in October on the strength of enduring buyer demand. Low mortgage rates, which have partially fueled this demand, fell even lower. And jobless benefit applications remain elevated after increasing from last week.

Existing home sales in October rose 4.3% from September and 26.6% from a year ago, to 6.85 million (SAAR), according to the National Association of Realtors.

Pending home sales data do point to some cool down to come, but by now it’s clear.

The median existing-home price rose to $313,000 in October, up 15.5% from October 2019 — the fastest annual rate of price appreciation since October 2005.

Ellie Mae – a software company that processes 35% of U.S. mortgage applications – reported the average mortgage rate on closed loans in October was less than 3%, the first time.

1.1 million initial claims for jobless benefits were filed last week, 55,000 more than the week before.

12 million people are due to lose their benefits at the end of December unless some programs are extended.

 

Mortgage delinquencies improved again in October, falling to 6.44%, the lowest level since March. Despite five consecutive months of improvement, there are still more than 3.4 million delinquent mortgages, nearly twice as many as there were entering the year, according to Black Knight.

October’s 4,700 foreclosure starts marked a nearly 90% year-over-year reduction as widespread moratoriums remain in place, while active foreclosure inventory set yet another record low at 178,000. Record-low interest rates again pushed prepayment activity higher, with October’s prepayment rate of 3.17% setting the highest single-month mark in more than 16 years.

U.S. rental payment rates appear to be staying afloat. The National Multifamily Housing Council found 90.3 percent of apartment households made a full or partial rent payment by November 20 in its survey of 11.5 million units of professionally managed apartment units across the country.

This is a 1.6 percentage point, or 183,431 household decrease from the share who paid rent through November 20, 2019, and compares to 90.6 percent that had paid by October 20, 2020. These data encompass a wide variety of market-rate rental properties across the United States, which can vary by size, type, and average rental price.

Realtor's Housing Market Recovery Index Foresees No Crash

According to Realtor.com's latest recovery report, the Housing Market Recovery Index remained steady at 112.8 nationwide for the week ending November 28th, up 2.2 points over the prior week. With fewer people on the move and more time spent at home during the Thanksgiving holiday, housing activity saw a boost compared to the same time in the previous year.

The housing index is pegged to a starting point of 100 at a particular year. And then they can just track whether things are improving or declining from that reference point. It’s similar to any other index where you have a starting point or a starting year and you peg it at a hundred and it just goes up and down from there.

It went up for most of March, and then it hit this peak and came down rapidly and fast over the course of essentially the end of March, April, and right through to the beginning of May where it bottomed out.

So after May 1st, that index started to go up, it passed 85 in mid-May and then continue to work its way up rather quickly. The recovery index had reached 106.6 nationwide for the week ending July 18, bringing the index above the pre-COVID recovery benchmark for the first time since March, and then it just kept going up from there. As of November 28th, it is now 12.8 points above the pre-COVID baseline and up 2.2 points over the prior week.

Locally, demand and supply continue to recover in most regions of the country. Apparently, home buying interest may be starting to grow slower than seller confidence in parts of the West and Northeast. The West saw its Supply Index increase by 9.6 points and its Demand Index increase by 5.0 points.

Similarly, the Northeast saw its Supply Index increase by 4.9 points, and its Demand Index increase by 1.0 points. The moves however are well short of solving the shortage of options for buyers.

48 markets have crossed the recovery benchmark as of this week, one less than the previous week. The overall recovery index is showing the greatest recovery in Los Angeles, San Jose, Boston, San Francisco, and Seattle, largely driven by improvements to the inflow of both buyers and sellers. This week, only Nashville, Oklahoma, and Buffalo remained below the baseline.

Dec. 15, 2020

EVICTION MORATORIUM- EXTENDED AGAIN

Landlords should be asking local attorneys in their city or state lots of questions.

 

No. 2 – Is it better now to use month-to-month leases?

One of the possibilities discussed is whether landlords would be better in this environment to go to shorter leases.

Is it better to continue doing your long leases?

Or should you move to a month-to-month leasing process? And does that help get around the moratorium issue? Because with a month-to-month lease, a landlord or property manager can say, “I am not renewing your lease. I am just not renting to you any longer.”

Both attorneys pointed out that there are many laws on this lease issue in different states, counties and cities, so landlords need to consult their local attorneys. But “that’s been one of the suggestions brought forward in Ohio.”

They pointed out the CARES Act is still in place, with its eviction rules.

 

No. 3 – Sue tenants for rent, not eviction

“There is no moratorium on suing people for rent,” Greenberger said.  “I think the new moratorium might allow a little crack of light, but it’s a state-by-state, city-by-city possibility. And I think it’s a very slim crack of light. What I’m recommending to people (is) you just sue people for rent – not for eviction – in small-claims court,” he said.

“Some of my clients are hiring me out hourly” to sue tenants, Greenberger said. “We’re not evicting them. We’re just saying ‘you now owe four months in rent and it continues to accrue. And on the day of judgment, we’ll take a judgment against you.’ “ He said once a judgment is entered and the tenant is working, a landlord can take wage garnishment or go after bank accounts.

 

No. 4 – Establish communication with tenants and document it

Watson said that he’s been advising landlords and property managers to be proactive with tenants.

“I have maintained a lot of communication, much more than the normal, with all my tenants during this particular season. And if there’s something wrong, I want to know about it.

“And so, I’m telling folks (to) establish a pattern of communication, because under that CDC moratorium, there’s got to be communication. And if there’s not bilateral communication, then that’s a very big piece of evidence,” which can be presented to the court in the landlord’s favor.

Watson suggested it might be appropriate to start putting back into rental agreements that a tenant’s failure to communicate with the landlord is evidence of a non-monetary default on the lease.

Watson said he has learned how to communicate with his millennial tenants in the way they want to be communicated with, which is text messages. He can take screen shots of these messages, and keep records to show a court if needed.

Watson said he’s eager to work with tenants who communicate.

He said he tells tenants, “ ‘Talk to me. How can I help you?’ Just last week we had a tenant come in and go, ‘Hey, I changed jobs.  This is what’s going on.’ We work with them. We’ve got a track record.

“This is going to be a test of how well do you do your business of being a landlord. Yes, it’s getting infinitely harder. You’ve got a vested interest. You’ve got communication skills. You understand why every word in that lease is there,” he said.

 

No. 5 – Landlords don’t bring your phone to court to show evidence

“As a practicing attorney, lots of my clients come into court with me and say, ‘I’ve got text messages,’ and they try to show me their phone,” Greenberger said.

“If you don’t want your phone held as evidence in the court files for the next two years, you need to bring those printed-out multiple copies if you want those entered into evidence, otherwise I have to have your phone seized and entered into evidence. So please don’t do that to me or your own attorney,” Greenberger said.

 

No. 6 – Federal eviction moratorium only applies to tenants not paying rent

Watson pointed out that the CDC moratorium applies only to tenants who are not paying rent, who are being evicted for nonpayment of rent. If they’re a bad actor – or in other terms, if they have breached the rental agreement in other ways – you can go through the regular process under the CDC federal eviction moratorium and move for their eviction, though it will take longer. You’ll have to do the proper notice procedures as your state dictates.

Charles Tassell of National REIA pointed out the Ohio Supreme court came out with a ruling that evictions still may be filed for reasons other than nonpayment of rent. “You’re going to see this as pretty much standard across the board, but that’s the kind of thing to keep in mind. There are still venues, but it depends on … are they violating their lease or not?”

In terms of working out payment agreements with tenants, Tassell pointed out that the CDC says tenants are supposed to make payments “to the best of their ability, up to the full amount of the rent.”

Watson said this “goes back to best efforts. The tenant has to show you that they’re making their best efforts. So if they’re down at Best Buy buying another big-screen TV … I’m sorry, that’s not going to work. They are going to have to show you their spending habits when they are not paying rent.”

Tenants have to show how much they have available to pay rent.

In the affidavit the tenant is supposed to provide, they have to say, “I have used best efforts to obtain all available government assistance for rent or housing,” Greenberger said. He said the law says everyone in the household must sign an affidavit.

The attorneys said it might make sense – but consult your local attorney – to file your eviction case before you get the tenant’s affidavit. Then your attorney can argue to strike the affidavit, unless you are under some other kind of eviction order from your state.

 

No. 7 – The problem is the “one-size-fits-all” with the CDC eviction moratorium

“This is not the time to be doing your own evictions,” Watson said.  There is a $200,000 penalty or fine for violating the order.”

Watson said landlords should:

Know your business

Communicate with your tenants

Use Voter Voice

Share your wins with tenants

Nov. 23, 2020

Housing Market Update: Home Prices Up 15%, Year-to-Date Sales On Par with 2019

Pending sales rose 34% and new listings were up only 9% from the same period a year earlier.

Key housing market takeaways for 400+ U.S. metro areas during the 4-week period ending October 25:

The median home sale price increased 15% year over year to $322,375—the highest on record. In the week ending October 25, home prices were up 16% from the same week a year earlier. Home prices continue to buck their typical seasonal pattern. The national median home price typically peaks the first week of July and declines through the fall, but this year since the four-week period ending July 5, home prices have increased 7.4%. Over that same period in 2018 and 2019, prices declined an average of 4.2%.

Pending home sales climbed 34% year over year even as the number of pending sales continued a typical seasonal decline.

New listings of homes for sale were up 9% from a year earlier—the largest increase since the four-week period ending September 13.

Active listings (the number of homes listed for sale at any point during the period) fell 29% from 2019 to a new all-time low.

45% of homes that went under contract had an accepted offer within the first two weeks on the market. This measure typically peaks in April or May and declines through the end of the year, but this year it has held steady since late June.

The average sale-to-list price ratio, which measures how close homes are selling to their asking prices, rose to 99.5%—an all-time high and 1.4 percentage points higher than a year earlier.

For the week ending October 25, the seasonally adjusted Redfin Homebuyer Demand Index was up 35% from pre-pandemic levels in January and February.

Mortgage applications increased 0.2% week over week (seasonally-adjusted) and were up 24% from a year earlier (unadjusted) during the week ending October 25. For the week ending October 22, 30-year mortgage rates were flat at 2.8%. Rates have been below 3% since late July.

 

-Tim Ellis

Posted in Market Updates
Nov. 16, 2020

How to Find the Best Mortgage Rates

How to Find the Best Mortgage Rates

Mortgage rates can change daily, and can vary widely depending on the borrower's personal situation. The difference can mean tens of thousands of dollars over the life of the loan. Here are some tactics to help you find the best mortgage rate for your new home loan.

 

Shop Around

You may be tempted to just use the lender who your real estate agent typically works with, but that doesn't guarantee you'll get the best rate for your home loan. It's best to compare official Loan Estimates from at least 3 different lenders to make sure you're getting a competitive interest rate.

 

Compare Fees

The mortgage rate isn't the only factor when it comes to the cost of your home loan. Be sure to look at each lender's fees and closing costs to fully assess the cost of the loan. When you apply for a loan, your lender will give you a form called a Loan Estimate that makes it easier to compare the total cost of the loan, including fees.

 

Increase Your Down Payment

Did you know that your down payment amount can have an impact on your mortgage rate? That's because mortgage rates are generally tiered, and typically lower mortgage rates are available for those with a down payment of 20% or more. If possible, consider increasing your down payment to see if it'll get you a lower rate for your home loan.

 

Improve Your Credit Score

Your credit score is one of the biggest factors that affects the mortgage rate that you'll be offered by lenders. Generally, the higher your credit score, the lower the interest rate for your home loan. Before applying for a mortgage, it's best to review your credit score and get it in the best shape possible. Learn more about how to improve your credit score.

 

Consider Your Loan Program

The 30-year fixed loan is by far the most common loan program, but adjustable rate mortgage (ARM) and 15-year fixed loans offer lower rates. If you're ok with the higher monthly payment of the 15-year fixed loan or the possibility of your rate changing with the ARM, one of these loan programs could help you pay much less interest over time for your home loan.

Posted in Market Updates
Nov. 13, 2020

Program helps homeless people afford apartments

Program helps homeless people afford apartments

By Sara MacNeil 

 

The city of Las Vegas added 10 apartments this month to a program that provides transitional housing for homeless people.

The Las Vegas City Council approved spending $93,500 to rent the units for one year. Program participants pay 30% of their monthly income for rent.

“The need for affordable housing does continue to increase for our participants who are just getting back into the workforce trying to get things so they can transition out of homelessness into stability,” said Kathi Thomas, the city’s director of community services.

There are 23 individuals or families living in homes through the program. In just over a year since the program launched, 90 individuals or families have participated.

Many participants have evictions on their records or are sorting out legal issues, such as custody battles, Thomas said. Some are on disability or pension plans, she said.

“There really aren’t a ton of landlords looking to support those kinds of needs. We work with landlords who will give people a second chance,” Thomas said.

Participants must be seeking a job, agree to work with a case manager and follow a case plan.

Thomas said homelessness in Las Vegas, steadily rising over the past 10 years, has jumped amid the coronavirus pandemic.

Nov. 12, 2020

Mortgage Rates

Latest News for NV Mortgage Rates

NEVADA 30-YEAR FIXED MORTGAGE RATES GO DOWN TO 2.94%

Thursday, November 12, 2020

The current average 30-year fixed mortgage rate in Nevada decreased 3 basis points from 2.97% to 2.94%. Nevada mortgage rates today are 3 basis points higher than the national average rate of 2.91%.

 

The Nevada mortgage interest rate on November 12, 2020 is down 2 basis points from last week's average Nevada rate of 2.96%.

 

Additionally, the current average 15-year fixed mortgage rate in Nevada decreased 7 basis points from 2.84% to 2.77% and the current average 5/1 ARM rate is up 3 basis points from 2.94% to 2.97%.

 

 

Posted in Market Updates
Oct. 23, 2020

Rentals in short supply in Nevada as thousands face eviction

Affordable rentals are slim pickings in Nevada, at a time when inventories are low for rentals and people are rushing to find rentals. 

The eviction moratorium that ended October 15 created a conundrum: a lack of vacancies, and a lack of housing options for everyone who could face eviction. 

The Nevada State Apartment Association said the vacancy rate for Nevada is 5.6%, lower than the national average of 6.8%. Officials say there is a lack of Section 8 and affordable housing for low-income individuals and families. 

"When you see something, you've got to act immediately," said realtor Jason Ross of Realty One Group. Properties are seeing multiple applications the day they hit the market. 

Landlords are also picking and choosing their tenants: Ross said a good credit score over 600 and one to two months rent down payment will also help your chances. 

Multimedia Journalist

Posted in Market Updates
Oct. 16, 2020

Late-Stage Delinquencies Now Twice Great Recession Peak

Mortgage delinquencies continued to rise in July according to CoreLogic's new loan performance report. The company found that 6.6 percent of all mortgages were at least 30 days past due (including those in foreclosure.) This represents a 2.8-percentage point increase in the overall delinquency rate compared to July 2019, when it was 3.8 percent. It was, however, a lower rate than the 7.1 percent reported for June, at that point a 3.1-point annual increase.

The improvement was in early stage delinquencies, those loans 30 to 59 days past due. They declined from 1.8 percent in July of last year after spiking in April of this year to 4.2 percent.

The rate of adverse delinquencies, loans 60 to 89 days past due, rose to 1 percent from 0.6 percent a year earlier, but were down from 2.8 percent in May. These improvements were offset by serious delinquencies, loans at least 90 days past due, including loans in foreclosure. That category surged from 1.3 percent in July 2019 to 4.1 percent. It is the highest serious delinquency rate since April 2014.

Further, the 120-day bucket was the highest in the 21 years CoreLogic has been tracking the data, 1.4 percent. The company said the persistent instability of the job market pushed many homeowners further down the delinquency funnel this summer. Dr. Frank Nothaft, chief economist at CoreLogic said the 120-day rate was more than double its December 2009 Great Recession peak. "The spike in delinquency was all the more stunning given the generational low of 0.1 percent in March" he said.

The foreclosure inventory, loans in some stage of the foreclosure process, is the lowest for any month in at least 21 years at 0.3 percent, down from 0.4 percent in July 2019. Most foreclosures actions are on hold due to the CARES Act.

The share of mortgages that transitioned from current to 30 days past due during the month was 0.8 percent, unchanged from the previous July. The transition rate has slowed since April 2020, when it peaked at 3.4 percent.

Home prices as measured by CoreLogic's Home Price Index (HPI) have been rising at an accelerated rate but unemployment levels in hard-hit areas remain stubbornly high, the company said, leaving some borrowers house-rich but cash poor. Despite the slow reopening of several sectors of the economy, recovery for other industries like entertainment, tourism, oil, and gas have a more uncertain outlook for the remainder of 2020. With persistent job market and income instability, Americans continue to tap into savings to stay current on their home loans. But as savings run out, borrowers could be pushed further down the delinquency funnel.

In July, all states logged annual increases in both overall and serious delinquency rates. COVID-19 hotspots were again impacted the most, with Nevada (up 5.2 percentage points), New Jersey (a 4.8 percentage points increase), Hawaii (plus 4.7 percentage points), New York (up 4.6 percentage points) and Florida (up 4.4 percentage points) topping the list for overall delinquency gains.

Similarly, all U.S. metro areas logged at least a small increase in serious delinquency rates in July. Odessa, Texas, hard hit by job losses in the oil and gas industry, experienced the largest annual increase, 7.5 percentage points. Other metro areas with significant serious delinquency increases included Laredo, Texas (6.6 points); Miami (6.4 points); McAllen, Texas (6.2 points) and Kahului, Hawaii (5.9 percentage).

Posted in Market Updates
Oct. 13, 2020

About VA Loans

VA home loan types

We offer VA home loan programs to help you buy, build, or improve a home or refinance your current home loan—including a VA direct loan and 3 VA-backed loans. Learn more about the different programs, and find out if you can get a Certificate of Eligibility for a loan that meets your needs.

 

How does a VA direct home loan work?

With a VA direct home loan, we serve as your mortgage lender. This means you’ll work directly with us to apply for and manage your loan. The Native American Direct Loan (NADL) program often has better terms than a home loan from a private lender (a private bank, mortgage company, or credit union). 

Find out if you qualify for a NADL

 

How does a VA-backed home loan work?

With a VA-backed home loan, we guarantee (or stand behind) a portion of the loan you get from a private lender. If your VA-backed home loan goes into foreclosure, the guaranty allows the lender to recover some or all of their losses. Since there’s less risk for the lender, they’re more likely to give you the loan under better terms. In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Lenders follow our VA standards when making VA-backed home loans. They may also require you to meet additional standards before giving you a loan. These standards may include having a high enough credit score or getting an updated home appraisal (an expert’s estimate of the value of your home).

 

Explore different loan types

Purchase loan

Looking to buy a home? Find out if you're eligible for a VA-backed purchase loan to get better terms than with a private-lender loan.

Native American Direct Loan (NADL) program

Are you a Native American Veteran or a Veteran married to a Native American? Find out if you're eligible for a NADL to buy, build, or improve a home on federal trust land.

Interest Rate Reduction Refinance Loan (IRRRL)

Have an existing VA-backed home loan? Find out if you're eligible for a VA-backed IRRRL to help reduce your monthly payments or make them more stable.

Cash-out refinance loan

Want to take cash out of your home equity to pay off debt, pay for school, or take care of other needs? Find out if you're eligible for a VA-backed cash-out refinance loan.

Posted in Tips for Buying