Las Vegas - getting a mortgage (rent, condos, good credit)

Negasong · 08-19-2011, 01:29 PM

I have read quite a bit online that if you want to buy in Las Vegas, you need 100% cash down. Is this true, or can you buy with 20% down and finance the other 80%? I am speaking of houses, not condos. Thanks ahead of time for any advice and thoughts on this matter.

Negasong · 08-19-2011, 02:05 PM

That was cute.

Danknee · 08-19-2011, 02:07 PM

They are pretty flexible out here. I paid for my house with 40% casino chips, 50% cash, and 10% in exchange for a hit on a guy who owed B of A lots of money.

Negasong · 08-19-2011, 02:09 PM

If this is the height of humor out there, perhaps I'll look elsewhere.

logline · 08-19-2011, 02:26 PM

Negasong, yes you can buy a home here with 20% down (and good credit), but remember that you run the risk of being outbid by all-cash buyers, so don't fall in love with a single house... have a lot of choices.

Negasong · 08-19-2011, 02:38 PM

Thank you for a sarcasm free answer, logline. A couple of people I had met who were from LV had told me in no uncertain terms that without 100% down, forget about buying in Vegas because banks weren't willing to finance homes there due to the huge crisis. Some sites on the Internet seemed to back that up as well. Thanks for clearing that up.

Robustus · 08-19-2011, 02:46 PM

Quote:

Originally Posted by Negasong

Thank you for a sarcasm free answer, logline. A couple of people I had met who were from LV had told me in no uncertain terms that without 100% down, forget about buying in Vegas because banks weren't willing to finance homes there due to the huge crisis. Some sites on the Internet seemed to back that up as well. Thanks for clearing that up.

Wow, I thought this thread was a joke so I didn't respond earlier. OF COURSE you can do a normal mortgage here (again, provided you have good credit, verifiable income, etc, etc). I bought my house (less than a year ago) on a standard FHA loan with 3.5% down.

And yes, there are plenty of cash buyers out there, but they do not dominate the market. The last stats I read indicated that the market is split roughly 50/50 between cash and financed buyers right now. You will find a higher proportion of cash buyers in the sub $100,000 range, I'm sure, though.

Negasong · 08-19-2011, 02:51 PM

Thanks, Robustus - no joke. That's what a couple of people from LV told me - and that's why I posted the question - it sounded weird to me, but certainly not out of the realm of possibility.

olecapt · 08-19-2011, 02:57 PM

Normal mortgages are available. For owner occupied one can get 3.5% reasonably easily with good credit.

Investor funding is also avaiable but may require 25% down. You need reasonable credit scores and sufficient income to cover the mortgage without the rent. You can use the rent as income after a year or so but not initially.

You can bid against the cash guys if you choose to. You simply agree to put up any appraisal short fall in cash.

Negasong · 08-19-2011, 03:04 PM

Thanks Olecapt. I have more than enough for a down payment and I have excellent credit. Not looking to bid against cash buyers, just looking for a lot more home than I can get for the money elsewhere. Not looking to dump the property any time soon, and I don't need to rely on the city for employment opportunities. Just looking for a primary residence that will hopefully appreciate in 10-20 years.