The Nevada Housing Division recently announced the 2014 Hero to Home Mortgage Program to honor those who have served our country with the realization of home ownership. NHD has partnered with private sector approved mortgage lenders such as Academy Mortgage to make this opportunity a reality.
Nevada Governor, Brian Sandoval proclaimed 2014 to be the “Year of the Veteran.” Nevada’s Veterans face a growing challenge as the home buying market becomes more competitive and Nevada’s home prices continue rise at the fasted rate in the nation.
Demographics support a need for enhanced programs which benefit Nevada Veterans. Approximately 30% of Veteran households in Nevada are renters (62,000). 45% of those households (28,000) have an income between $40,000 and $110,000. (Estimates derived from the American Community Survey downloaded from the American Factfinder at the Census bureau on 12/20/13.)
- Veterans who have been honorably discharged
- First time home buyers serving on Active Duty
- National Guard service personnel
- Any of the above who meet standard underwriting criteria
- Mortgages are originated by participating private sector mortgage lenders, thus strengthening partnerships
- Lenders can use all eligible loan types for financing
- Purchaser power increases with the ability to look for higher priced homes while keeping payments low
- Funds available to help approx. 200 Nevada Military and First Time Home Buyers on a first come first serve basis.
“Hero to Home” Advantage:
In the below illustration, I compare renting a home for $1,250 a month with purchasing a similar home priced at $200,000 using a standard 30-year VA loan and a 30- year “Hero to Home” VA loan. The forth column illustrates the increase in purchasing power the “Hero to Home” program provides.
If we compare the $1,250 a month rental payment with a standard VA loan with an interest rate of 4.25%, the principle, interest, taxes, and insurance (PITI) payment, the cost of owning is about $1,180 a month or $70 a month less than renting. Once you add in the amount paid toward principle and the mortgage tax credit, the savings increases to $478 a month. I estimate the cash necessary to close at about $3,900.
Looking at the same $200,000 purchase with “Hero to Home,” the total PITI payment is only $1,045 or about $135 a month less than a standard VA loan and more than $200 a month less than renting. Due to the available down payment assistance, you are able to pay your closing costs with your second loan. In this scenario, I estimate you will need about $70 cash to purchase this home.
In the “Hero Power” column, I calculated how much home you could buy utilizing the “Hero to Home” program if you were to keep your payment the same as a standard VA loan. Increasing the purchase price 15% to $230,000, the payment is about the same and your closing costs will be covered by your second loan.
If you have been dreaming of owning your own home, this is your chance. The median Reno/Sparks home price has increased 11% since this time last year. Where will prices be a year from now? Don’t let the down payment prevent you from realizing the dream of owning your own home! Call Doug Kaller at Academy Mortgage @ 775-828-7006 to learn more about this fantastic program or click on the orange “Pre-Qualify Now” tab below to apply online. There are no more excuses.