Why Go With A Broker?
Have you ever been turned down for a mortgage loan? Have you wondered "well why didn't they get me a different type of loan?" It's probably because they didn't have any other programs because they were only licensed as a mortgage banker, not as a broker. In Nevada, only a broker can send loans to other lending institutions. That is an extremely powerful advantage, and the better license to have.
Elizabeth Weintrub on About.com says: "I advise first-time home buyers to meet with a mortgage broker before deciding on a loan because mortgage brokers carry a vast array of products, including the tired and boring old conventional loans. A bank can make a conventional loan, too, but generally a bank's product line is limited and particular only to that bank. Whereas a mortgage broker can broker loans through any number of banks (for any number of programs).
After the mortgage meltdown of 2007, many of the exotic types of loans vanished, and conventional loans started to become more popular. Conventional loans gained a reputation of being a safe type of loan, but there are a variety of conventional loans to choose from as well."
If you want to check and see who is licensed and who isn't, go to this website: MLD.NV.GOV
Fannie, Freddie, Portfolio
Conventional loans require a minimum of 5% down payment, require mortgage insurance when the LTV is greater than 80%, and are made by lenders who then sell them through a secondary market to Fannie Mae or Freddie Mac. Fannie and Freddie are the short names for "Government Sponsored Enterprises" or GSE's,, and GSE's provide a way for lenders to sell their loans through mortgage backed securities, and replenish their capital, in order to make more loans.
HARP, HARP2, and HAMP are acronyms for other conventional loan programs. These programs are good for people who are under water on their loans.
Government Loans - FHA, VA, 203K, USDA
Types of government loans are FHA, VA, and USDA, although there are not many USDA loans in Las Vegas. They are popular, however, in Pahrump, and many rural areas of Nevada. An FHA loan is insured by the government and a VA loan is backed by the government. Down payment requirements are different as well. The minimum down payment for an FHA loan is 3.5%. For a VA loan, the minimum down payment is zero. FHA also has a program for .5% down, and we broker to that program also. Additionally, there is the FHA Back to Work program that lets homeowners back into the purchase game within a year of a short sale or foreclosure.