The Southern Nevada Real Estate Show

Kevin Krall: You're listening to
special programming brought to

you by Regatta. kumin. Henry of
Coldwell Banker Premier Realty,

the content of this program does
not reflect the views or

opinions of 91.5 Jazz and more,
the University of Nevada, Las

Vegas, or the Board of Regents
of the Nevada System of Higher

Regana Kooman Henry: Good
morning, everyone. Welcome to

Education.

the Southern Nevada real estate
Show. I'm your host, Regana and

we have a very special guests
Keirsey Maki, a loan officer

with the loan depot mortgage
company. Welcome Keirsey.

Kiersy: Thank you. We're gonna I
am so excited to be here with

you today. And I appreciate the
opportunity to have me here.

Unknown: Yes. And Keirsey. Today
is going to talk about loan

programs and what's right for
specific individuals. And I know

there's people out there, maybe
they have never purchased a home

before maybe they have. And some
people are very confused with

the different loan options there
are so Kiersey when people are

wondering out there, you know,
like what type of mortgage loan

is right for them? What do you
say?

Great question regardless. So
while there's lots of different

types of mortgage loan products,
you know, the main ones that

you're going to hear about are
your FHA, your conventional and

your VA loans. And, you know,
most of us weren't taught in

schools or by our parents what
the different options are for

us, for homeownership financing.
So we learned from talking to

family or talking to our friends
or, you know, maybe our

neighbors on what their
experience was show. And the

problem is, is it's just that
it's their experience.

Yes. And so the for the people
listening out there QRC, they're

probably wondering, especially
if they've never done this

before. And you know, since
things maybe have changed over

the years, how does one know,
which is the best mortgage

option program for them,

it's just going to really depend
on your specific situation. So

each program has its advantages,
or you know, but it's all it's

always going to be specific for
you and your specific situation.

There's different qualification
requirements for FHA, for

conventional for VA, but if you
have a really good loan officer,

they're going to go over all of
your situation, and what's going

to be the less the best loan for
you.

Yes. And so, you know, many
people think that FHA loans are

like, for first time homebuyers,
is that necessarily true?

Hey, that's a great question.
We're gonna so you know, you

will hear that a lot. You know,
people call me up, hey, I have

never bought a home before. Can
I get that that first time

homebuyer FHA program? Well, FHA
isn't necessarily a first time

homebuyer program. You know, you
can buy your first home with it,

you could buy your fifth home
with it. You know, there's

there's stipulations. Of course,
for example, you can't have two

FHA loans at the same time
within 100 mile radius. So let's

say you bought a home here in
Las Vegas a few years ago, now

you've had a couple of children,
you need another bedroom, your

mother's coming to live with,
you know, whatever the situation

is, you can't purchase with
another FHA loan if you

currently have one. So you would
either have to sell the home,

refinance it into a conventional
loan, or just do the new home as

a conventional. But FHA is a
great product, you can only use

it for owner occupied, okay, you
can't do it to purchase a second

home or an investment property.

Okay. And how do people know how
much do they need for a down

payment on an FHA loan? And like
what kind of credit score would

they need to do an FHA loan,

so FHA only requires you to put
down three and a half percent of

the purchase price or the
appraised value, whichever is

less. As far as credit scores
go? We can go down to a 580 with

that three and a half percent
down, okay. Now, you can go down

to a 500. But you're going to
need, you know, as much as 10%

down to be able to go that low
on the credit scores, and FHA

loans, they are insured by the
Federal Housing Administration,

which allows for easier
qualifications for borrowers

that may not be able to purchase
with a regular conventional loan

and they also allow for higher
DTI.

Okay, and for the consumers out
there. Are that don't know what

a DTI is? Because that's like an
abbreviation lingo for the

people in the mortgage business.
What is DTI?

That's a great question. I think
a lot of us use terminology in

our day to day business lives
that not everybody might

understand. So, DTI stands for
debt to income ratio. And that

is the percentage of your
monthly pre taxed income, you

know, what you spend on your
dad's your mortgages, student

loans, car loans, credit cards,
versus whatever your income is,

that's how we calculate a debt
to income.

I see. And can they consider the
lenders consider things like

cell phone bills paid on time,
gas utilities, food, car

insurance included in these type
of ratios?

That's a good question are gonna
so you know, some people like to

do their own research ahead of
time. And they may say, with all

of my expenses, you know, I
don't call my debt to income is

going to be way too high? Well,
we don't include things like

your cell phone, your your gas
for your car, your utilities,

your food, those things aren't
included in your in your debt to

income ratio.

I see. And, but Keirsey some
people may say that, you know,

for example, they may manage
their money well, and they know

they can afford to pay higher
than what they qualifying for

through the mortgage. And if
they know that they can manage

their money. Well, they might
think like, why won't they the

mortgage companies lend them a
higher amount?

So that's a great question. And
especially here in Las Vegas,

where you have industries where
you get a lot of tips, a lot of

commission, a lot of self
employment. So there's specific

ways that we have to calculate
the income per the FHA

guidelines. So you may make on
paper a little bit more money

than I can use to qualify you.
FHA does allow you to go up to

50% of your income for your
housing and your other

obligations. Sure. So after
that, they kind of deem it as a

risk for you, as the buyer, and
a risk for them as the lender.

And we've seen this really well,
in the last couple of years,

where we had a pandemic, I mean,
nobody, nobody could have

predicted a pandemic, right like
that. And there was a lot of

people that were out of out of
work for a month, two months a

year. So, you know, they want to
you to be able to save money and

have that money in case of
emergencies, like the pandemic,

for example.

I see. And Keirsey there's
people out there wondering,

okay, with an FHA loan, what is
the maximum purchase price they

can do for FHA loans?

That's a great question as well,
we're gonna so FHA, they do

their loan limits, and it's
determined by what county that

you are purchasing it. So in
Clark County here, where we're

at most of the counties in the
United States, that limit is

$420,860. Now, if you were
purchasing, let's say, in LA, or

Hawaii, or some of those other
high cost areas, it's going to

be a little bit more, but for
the most part, you're going to

be limited to that for 2860.

I see. And so for example, I
know there's some people out

there listening, they're gonna
say, Well, what if they found a

home that they absolutely love,
and it fits their family's needs

do to, you know, bedroom size,
yard size, but, for example,

that puts them over the county
loan met limit that you're

talking about? Does that mean
that they can't purchase that

home on an FHA loan Keirsey,

it does not necessarily mean
that you cannot, you would just

have to put a little bit more
money down so that your loan

amount doesn't go over that
county loan limit?

I see. Well, Keirsey, I'm sure
there's some customers that may

be working with a real estate
agent right now. And they're

saying, for example, the agent
is telling them, well, you know,

you qualify for the loan, but
for example, the house will not

qualify using FHA financing, so
they have to find another home

to purchase. Why would that be
that the real estate agent for

the buyer, say that the house
doesn't qualify for FHA

financing? Keirsey?

So this is a great question too,
because I have, you know, I have

a lot of people that are looking
like on Zillow, or on the

Internet somewhere for homes,
and when I go and look it up for

them so that I can see
approximately what their

payments going to be. You know,
I'll see that it doesn't qualify

for FHA financing. So I tried to
explain that to borrowers and

they're just not really, you
know, they don't really quite

understand. So I'm glad you
asked that question. So FHA,

they do read require an
appraisal from an FHA certified

appraiser. And they are
restricted to HUD guidelines,

they have to have specific
things in the home, that might

be a little bit more stringent
than, say, a conventional

appraisal. You know, you can't
have any self health and safety

issues, the soundness of the
construction is going to be

noted, it's got to adhere to
local codes, like no wires

poking out anywhere. No chipped
or peeling paint, you've got to

have outlet covers, things like
that.

I see. Now, here's the How are
the interest rates, let's say

for example, how the interest
rates compare from let's say, an

FHA loan to a conventional loan.

So for FHA rates are typically a
little bit lower than

conventional. And this is
because they are insured by FHA.

So FHA insures them with their
own particular mortgage

insurance,

and you keep mentioning about
the loan is insured by FHA. So

for people out there that never
purchased a home or are not

familiar with mortgage
insurance, can you expand on

what mortgage insurance is?

You bet. So there's a couple
different types of insurance

that you're going to have on
your home, you're going to have

your homeowners insurance, which
insures the property in case of

any any damage, like if there
was a fire, you know, things

like that. And then you're going
to have what's called mortgage

insurance, and mortgage
insurance is that it protects

the lender in case you default.
So on an FHA loan, they require

mortgage insurance on 99.9% of
their loans, regardless of how

much money you put down,
regardless of your credit score,

you know, all those different
types of things that go into

mortgage insurance, they require
it on on all FHA loans, and that

mortgage insurance is going to
stay on your loan for the life

of the loan. So that's a little
bit different than conventional

because on conventional, you're
not necessarily required to have

it and it can drop off. So FHA,
regardless of your credit score,

all those things, it's going to
be the same rate for everybody.

So if you have a 620 credit
score, and I have an 820 credit

score, our mortgage insurance
amount percentage is going to be

the same. And that's just how
FHA does that. And that's why

it's a little bit easier to
qualify sometimes for an FHA

loan. So they also have two
types, they have what's called

an upfront premium, that upfront
premium, you can pay for it out

of pocket if you want, most
people opt to roll that into the

loan, which you can do. And then
they have a monthly amount, a

monthly percentage that's going
to be included in your monthly

mortgage payment. And there is
also one more added benefit that

I would like to address with
FHA, they offer what's called a

streamline refinance. So
especially in the climate right

now, where rates are going up,
you know, they're past six, and

just a couple months ago, they
were in the twos and threes. So

if you're purchasing now and you
have an FHA loan, and maybe like

a year down the road rates drop
down to where it would drop your

payments significantly. You can
do the streamline refinance,

they don't do a credit check.
They don't do income

verification. In most cases,
there's no appraisal, it's just

strictly a refinance, to drop
your rate and drop your payment.

Now you are still going to have
mortgage insurance. And there

are a few other requirements for
this. But I mean, it's a great

option when it's time to
refinance for FHA.

Sure, and Keirsey, can you tell
us a little bit more about

conventional loans, and what
they need for like credit scores

and down payments and all those
things that because some people

have, again, never purchased a
home. So this will give them

weighing difference between the
FHA and versus the conventional,

right. So on conventional loans,
they require a credit score of

620 or higher. And there's a few
exceptions to this, but it's

really highly unlikely that
you're gonna get an approval on

a conventional loan, with less
than a 620 credit score, you can

purchase a primary residence,
you can purchase a second home,

you can purchase an investment
property with a conventional

loan, versus the FHA where you
can only purchase a primary

residence. And then another
difference for the conventional

loan is if you put 20% or more
down, then you're not required

to have mortgage insurance. So
you know, again, this is a

little bit different than FHA
that no matter how How much you

put down, you're gonna have
mortgage insurance, okay, the

mortgage insurance on a
conventional loan, it will

automatically drop off when you
reach 79% of your original loan

your principal balance to the
original purchase price. So in

markets that we're in right now,
where homes are appreciating, so

rapidly, you know, there's a lot
of people that say, Hey, you

know, I bought my house six
months ago, or my mortgage

insurance should be dropping
off. Well, that's not really how

they calculate it. And if you
want to remove it before it

reaches that point from the
original, you can do that. But

you have to make two years of
payments, you know, and then

they have like, what's called
like a desk review appraisal,

and stuff like that. But it is
possible to get that removed or

say you went in and did a bunch
of upgrades, that would increase

the value of your home,
sometimes they'll allow you to

drop the mortgage insurance that
way. So it's really just going

to be dependent on your, your
specific situation, conventional

loans, they also typically
require 5% down versus the FHA,

which is the three and a half.
Now, there's a few options for

conventional to put 3% down, but
it's only on owner occupied

properties. And they generally
have a few more restrictions.

first time homebuyer income
limits, things like that. So

it's a little bit harder to get
qualified for that 3% down

conventional that it would be
for say, like an FHA loan. Also

on a conventional loan, your
appraisal process is going to be

a little less stringent. So you
can have, you can close with

bare floors, which FHA you can't
close with bare floors, other

repairs that might be required
on FHA aren't going to be

required on a conventional loan.

Okay, now, we've talked about
FHA, we've talked about

conventional. Now, how about VA
loans? Keirsey? I bet there's

some veterans out there are
people that's active duty, and

they have possibly no idea or no
clue if they qualify for a VA

loan, which, by the way, has
some very good benefits to them.

So Keirsey, can you give us some
vital information about VA

loans?

Yes, thank you, we're gonna so
first of all, we want to say

thank you to all our veterans
out there and all our active

duty for everything that they do
for us and the sacrifices they

make. And VA is actually my
favorite type of loan to do.

First of all, the borrowers. I
mean, I hear so many great

stories about about veterans and
getting in homes and never have

been able to qualify before. But
so VA loan, how do you know if

you qualify for that. So if you
are on active duty regular

military, and you have 90 plus
days of continuous service, then

you qualify for a VA loan. If
you're in the National Guard, if

you're in the reserves in in
those other disciplines of the

military, then you need 90 non
training, active duty. So not

your training military, but like
if you've been activated, or

here in the States or abroad, 90
plus days of that, or six years

of creditable service. So you
get points for doing things in

the National Guard and Reserves.
So you need six years and a

certain number of points to do
that.

I see. And how do let's say VA
interest rates compared to

conventional interest rates
Keirsey.

Well, VA is very competitive,
and usually their rates are a

little bit lower than
conventional, especially because

you can finance a little bit
more on a VA loan.

I see. And like for example,
does VA require a down payment

like FHA or conventional and if
so, how much is the downpayment?

Great question. So VA does not
require a down payment. You can

put a down payment if you want
but they you can finance 100% of

your purchase price on a VA
loan.

Okay, VA appraisals versus let's
say a conventional appraisal,

how does that compare with the
appraisals situation?

So a VA appraisal is going to be
more like an FHA appraisal. The

appraiser has to be Vi certified
before they can do the appraisal

for them. You're gonna have your
health and safety issues that

they look at, you know, they
just really want to protect the

the buyer, that when they're
getting into this home that it's

going to be a place you can Go
in live and be comfortable

without having to worry about
doing a bunch of repairs and

stuff like that. So there is one
really great thing about VA

appraisals that I'd like to
mention is that let's say the

appraiser picked up the
assignment, they have looked at

the house, they've looked at
whatever comps they're going to

use, and they don't think that
the value is going to come in at

what your purchase price is. So
the VA is required to send out

notification to the lender. And
as the lender, we, we notify the

listing agent and the buyer's
agent, that you know, you've got

48 hours, please provide me with
anything that you are aware of

that the appraiser might not be
as to why you feel the value is

is what the purchase price is.
So we provide that back to the

appraiser. And they definitely
take that into account. And

you're not going to find that on
any other appraisal. So it's a

great thing about VA sounds

like it. And for example
Keirsey. What if a borrower

let's say for example, they're a
VA borrower, and they're being

transferred, let's say to Nellis
Air Force Base per orders, can

they actually purchase the home
before they physically get

transferred here in Nevada?

Oh, absolutely. So if you've got
orders, you know, I can't

imagine picking out my whole
family and moving every couple

of years to a new city a strange
place. And you know, especially

if you've got a family, you want
to be able to come here, you

don't want to have short term
housing trying to buy especially

in this market where you know,
there's no rentals and short

term rentals are crazy. So if
you have the orders, you can

come here, you can look for a
house, we can get you approved,

we can get the loan closed, as
long as you're going to move

into that property within a
reasonable amount of time. And

VA determines a reasonable
amount of time is roughly 60

days. Now that's going to be
specific to every situation, if

you have a situation that's
going to take you over that 60

days, that doesn't automatically
disqualify you for that. So we

just look at that on a on a case
by case basis. So it's great for

them to be able to come here and
just move straight into the home

that they're going to live in.

Sure. That sounds like a lot of
good information for vets,

veterans, for sure. And QC. What
if a veteran previously had a VA

loan, that let's say a while
back, maybe when we had our

market crash, and went into like
a short sale, or a foreclosure?

Is that veteran still eligible
to purchase? Again, using a VA

loan? Again?

That's a good question. I get
this a lot. And I think that not

many people are aware that just
because you had a short sale or

a foreclosure on a VA loan, that
doesn't automatically disqualify

you from getting another VA
loan. I've done plenty of homes

where they had a foreclosure,
they still had entitlement left

and entitlement is vas, mortgage
insurance, let's say. So if you

have entitlement left, then you
could still purchase a home with

a VA loan. And we just do like a
little simple calculation to

figure that out. And, you know,
it's going to be case by case

basis. So come in and talk to me
and I, I'd love to walk you

through that.

Okay, so that's a lot of great
information for the audience.

And, you know, today, my special
guests, Keirsey M Bucky, she's

gone over FHA, conventional, and
VA financing touched on all

three. And hopefully that gives
some of you people that's

listening right now, some really
great vital information so you

can put your best foot forward
and if you've been contemplating

buying or selling to go ahead
and contact Keirsey and get the

ball rolling with the mortgage
Keirsey I'd like you to give

your name full name and your
company name and your phone

number tries so that they know
how to reach you.

Great. So my name is Keirsey
Maki, and I am with the loan

depot. We have a couple
different offices. We've got one

at Town Square, we've got one at
Flamingo and the 215. My phone

number that you can reach me at
is 702-322-0421. Again, Keirsey

Bucky 702-322-0421 And my NMLS
number is 1398336

Wonderful Keirsey I really
appreciate you coming on my

show. So today and giving the
audience such great information

that they may not have had
before even if someone was a

purchaser of a home in the past,
it's good information to refresh

their memory of what it's like
between the different loan

products and the standard
qualifications for those

programs, and I am regatta kumin
Anri and I'm with Coldwell

Banker Premier Realty. And I
really, really appreciate all of

you that's been listening today.
And I will be here every fourth

Sunday of the month between 730
and eight o'clock with vital

information for everything
that's real estate here for

Southern Nevada. And my name
again, it's regatta and my

telephone number is 702-596-1267
I'll repeat it one more time.

702-596-1267 Thank you so much
for listening to the show. My

license number is BS 27880