Maria Gudelis

In addition to the sweltering heat of Las Vegas (can we say 110 degrees….YICHS!) the $400,000 and below housing segment is heated up right now because of ONE thing - FHA with NO MONEY DOWN loans.  Huh, you mean the housing crisis and ridiculous sub-prime lending tsunami of foreclosures didn’t make the ‘no money down’ loan disappear as fast as Neo can move in and out of the Matrix? 

Here is what the deal is in Las Vegas, the FHA loans go to $400,000 limit and there still exists the ‘downpayment assistance plan” that allows the seller to contribute towards the buyers downpayment and as long as the seller agrees to the ’seller contribution’ in the purchase offer, then Voila, a buyer can get 100 percent financing with no down payment.  You see, part of the seller contribution goes to ‘non-profit’ (wink, wink, nudge nudge) organizations such as Nehemiah, Ameridream, Preferred Program and they then turn around and provide those funds to the buyer!  Hmmm….only in America! 

Well, as of September 30, 2008, no more - The seller funded down payment assistance program (DPA) will be terminated.  The buyer will have to put at least 3.5% down of His/Her own money.  Now, that is still absolutely amazing when you compare getting a mortgage in ANY other country - it is simply a white unicorn to get even 96.5 percent financing.

What does that all mean?  Buyers who want to get into a home with no money down have until Sept. 30th to do so, thus, the demand for $400,000 homes and under in GOOD neigbourhoods in Las Vegas to the point of multiple offers on a property right now!