Mr. CheapGoo…, Home Buyer in Las Vegas, NV

Rent or Buy in Las Vegas?

Asked by Mr. CheapGoods, Las Vegas, NV Mon Mar 3, 2008

Rent or Buy in Vegas?
My wife and I are currently renting a house, but the landlord stopped paying the bank about 6 months ago and the foreclosure notice just went up. I have talked to a few realtor's/mortgage companies, but from what I have heard you need almost perfect credit to buy anything these days. While we have good documented income and a good down payment (5-10%), we fall short in the credit area due to some old collections from 5 years ago that are still dragging my score down. Is it still possible to buy in this situation or should we just rent again?

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This is definitely one of the strongest Buyer's markets that Las Vegas has ever seen...
Since your monthly payment would be building Equity... I would always recommend Buying over Renting if it is at all possible.
Loan guidelines are tightening up... but with the large downpayment you mentioned, there may be the possibility of getting you approved. Or there is also the option... if you were able to pay off the collections... To get an FHA loan for only 3% down.
I would be happy to put you in touch with a Loan Officer who also does FHA... to discuss all of your financing options. She has helped other Clients of mine when other lenders had turned them down. I think it would be at least worth a shot... to try and get approved before you decide to continue renting.
If you do get approved... I would be happy to help you find an ideal home as your Buyer's Agent at NO cost to you. Anyways give me a call (702)351-9863 or you can instacall me from my website below...
Best of luck!!!
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1 vote Thank Flag Link Tue Mar 4, 2008
Jason, one thing to consider: if you have collections on your credit, they may not go away in seven years! If the collection agency refiles, they will stay on there until they are paid off. It may be more sensible to use some of the down payment money to pay these items off or negotiate a settlement, depending on how large the items are.

It may a number of months to accomplish clearing your credit and getting those scores up a bit. But right now we are experiencing the best buyer's market we have had in a long time and it would be a shame to miss that window. And just recently in the lower priced single family homes, we are starting to see multiple offers again. This indicates that our market is definitely correcting itself.

Perhaps you might consider a lease purchase. There are many vacant homes on the market and there are enough owners that are desperate enough to sell that they will consider a buyer with viable option money which you actually have. You won't be able to consider any of the foreclosure properties or short sales on the market, but quite a few owners are now priced to the foreclosures to get their property sold. We may be able to find you a good deal on a home you like to take advantage of the market conditions now and give you time to get financing.

But before that we have to make sure we can get those credit scores up in a reasonable time! Give me a call at 702-596-7821 and I can not only get you with a lender that can help clear your credit, but I can also discuss the ramifications of doing a lease purchase.
0 votes Thank Flag Link Wed Mar 26, 2008
With your score you obviously won't get the best rates, and they are still relatively low for the moment, but with a down it sounds like you're still a possible to qualify. Also with the 7 years coming up soon you may be able to improve on that score. I don't believe anyone can be definite without checking, so I would still suggest running it with a good mortgage person to know exactly where you stand.

You can't predict the future, but as the upcoming hiring boom happens there is a possibility rents and home prices will begin to creep upwards. It's something to consider and worth your time to explore all your options. I can put you in touch with the loan officers in my office if you'd like. In my experience with them they've been very helpful and straight up about what can or can't be done. Whoever you decide to use there's no cost or obligation to have them run it and you owe it to yourself to have a clear cut answer.
0 votes Thank Flag Link Tue Mar 4, 2008
I probably should of put in my original post that my FiCO is around mid 500's. I have access to all three of my credit reports and scores, and 80-90% of the items pulling down my credit will be over 7 years by this time next year. I have just heard a lot of different information lately.
0 votes Thank Flag Link Tue Mar 4, 2008
Hi Mr CG,

When you say "talked" and "hear", I'm assuming they didn't actually run your credit, or else you would already have your answer.

I would agree that you should find out exactly where you stand. A good mortgage broker can even let you know if there is any way to improve your credit score. At the very least, just improving that may save you money in the long run even if you do continue to rent, and for all your other credit purchases.
0 votes Thank Flag Link Tue Mar 4, 2008
I concur with Jason. I would talk with a trusted lender and see what they can do.
0 votes Thank Flag Link Tue Mar 4, 2008
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