Master Planned Communities in Southern Nevada: Southern Highlands

A pre-planned multi-builder development with recreation, public services, commercial sites and residential housing in a self contained community. This is part two of a multiple part series looking at various master planned projects throughout Southern Nevada. I will be focusing on Southern Highlands in this article.

Southern Highlands is located in the Southwest part of the Las Vegas Valley. Secluded up against the mountains the community is still convenient to the Las Vegas strip, the Airport (without being in the flight path) and easy access to I-15/California. The 2300 acre community has more than 50 acres of parks, walking trails and community sports facilities.

Southern Highlands is home to the Southern Highlands Golf Club. A private golf  course designed by Robert Trent Jones which is consistently ranked one of the top 30 golf courses in America. There is also a 42,000 square foot clubhouse and spa with dining and private party facilities.

There are two public elementary schools (Aldeane Comito Ries, Charles & Phyllis Frias) and a public middle school (Lois & Jerry Tarkanian). There is also a private school for grades k-8 (Southern Highlands Preparatory School). Visit the link for more information http://www.ccsd.net/.

Currently there are approximately 213 resale homes for sale in Southern Highlands ranging in price from $106,000 to $10,000,000. In addition there are 12 builders currently selling new homes with prices similar to the resale range. Since this is a master planned community there are association fees to consider when buying a home here. Monthly association fees run  from as low as $39 up to$600 a month. Another cost to consider is called a SID (Special Improvement District), basically a bond that is repaid by homeowners over a period of years. The SID was initiated to pay for the initial installation of infrastructure (roads, sewers, sidewalks, streetlights etc.). The SID’s payments range from $260 to $4800 a year and not every house has a SID balance. They are transferable from old owners to new owners and sometimes you can find a house where they have been paid off.

Needless to say, I am a big fan of master planned communities and Southern Highlands is one of the standouts in Southern Nevada. Feel free to contact me if you have any real estate questions regarding Southern Nevada. I have lived here for 20 years and I have been a Realtor here since 2001.

Why is now a great time to buy the golf course home of your dreams? 

In the Las Vegas area there are over  50 golf courses with homes surrounding most of them.   Currently Las Vegas has over 800 properties listed in golf communities that range in price from a condo at Lake Las Vegas for $39,000 (no, that’s not a typo) to an estate in McDonald Ranch for $15,900,000.  There is literally something for everyone in every price range.  Selecting a home within a golf course community can be a very personal experience.   A community that meets your needs can include a view of the fabulous Las Vegas Strip,  private golf club,  recreational facilities with community rooms, pools, spas, walking paths,  exercise facilities, media rooms, massage,  on-site dining,  hotels and even a Casino, many have scheduled events, entertainment venues and much, much more.

Living in the Las Vegas area is truly an experience with great shopping, restaurants, freeways and beltways that can get you just about anywhere in the valley in less than 20 minutes – however, many find that life away from the “Strip” is much the same as anywhere else they’ve ever lived, a real community.   Many locals will tell you that they rarely go to the Strip except when company comes, but thankfully — it’s your choice.   In the coming weeks, I’ll give you insight into the various areas that are often overlooked.

GOLF IN HENDERSON

The very first Master Planned Community in the Vegas Valley was Green Valley in Henderson.  It was built in the 1970’s surrounding what is now the Wildhorse Golf Club, www.golfwildhorse.com.  Wild Horse  was built in 1959 and at one time owned by Hank Greenspun of the Las Vegas Sun and later by Howard Hughes.   Previously on the PGA Tour as the Sahara Invitational, it is now a public course owned by the City of Henderson. (If you google this course, you’ll find it labeled as Paradise Valley Country Club.)   This course was just re-designed  to provide recent xeriscaping to both beautify the property and conserve water. Wildhorse offers an enjoyable round of golf at a reasonable price and is definitely a local’s favorite!

If you have interest in this golf community, there are only 91 properties that surround the course itself and possibly 5 vacant estate lots still available.    While many of the homes are older, a many have undergone extensive makeovers. Interested?  There are only a few properties available that have golf course frontage.

If you are interested in a Golf Course Home in Las Vegas, feel free to give us a call at 702.376.7379 or fill out the contact form to the right.

VA Loan Basics For Las Vegas Veterans

If you’re a Las Vegas Veteran, a VA Mortgage may be an excellent option to consider when pre-qualified for new home loan.

What Are VA Loans?

As a way to honor and serve those who served the nation in World War II, the U.S. government created the VA Loan Guaranty program.

Since then, the Department of Veterans Affairs has helped more than 18 million veterans and their families achieve the dream of home-ownership.

Faced with deployments across the globe and frequent domestic relocation, active duty military members and veterans have struggled at times to build the financial stability necessary to secure reasonable lending options. VA loans have served as a crucial bridge for this deserving demographic.

VA loans are guaranteed by the federal government. In essence, the Department of Veterans Affairs agrees to cover about one quarter of a borrower’s mortgage in the event of default. That fiscal safety net gives VA-approved lenders a greater degree of security, which often translates into excellent rates and loan terms for qualified borrowers.

VA loans are also one of the few remaining ways for borrowers to purchase a home without putting any money down. The no-down payment feature is routinely cited as the program signature benefit as it is also a cornerstone of the program’s mission to make home-ownership possible for as many veterans and military members as possible.

The VA Loan Guaranty Program backed more than $68 billion in single-family loans for the fiscal year ending Sept. 30, an 80-percent increase from last year.

Some Key Benefits of VA Loans:

VA loans feature some of the most powerful financial benefits of any loan product on the market, in large part as a tribute and service to America’s veterans and active duty military members.

VA loans are one of the few remaining avenues for qualified borrowers to buy a house without a down payment — that no-cost option is routinely cited by veterans as the program’s most compelling benefit. In most parts of the country, veterans who qualify can purchase a home worth up to about $729,000 without putting down a single dollar.

There are also several other key benefits that can make a huge financial difference for military members and their families:

• No private monthly mortgage insurance, which is a staple of conventional loans when the buyer puts down less than 20 percent
• No penalties for loan pre-payment
• Higher debt-to-income ratio allowed than for most conventional loans
• Sellers can pay up to 6 percent of closing costs

Veterans often have an easier time qualifying for a VA loan. In fact, about 8 in 10 VA borrowers could not have obtained a conventional loan. The program does not have income or credit restrictions.

But remember that the VA doesn’t issue loans – it guarantees them. Prospective borrowers should expect VA-approved lenders to examine an applicant’s financial standing and credit history. In general, borrowers with a credit score below 620 may struggle initially to obtain financing.

Who Is Eligible For VA Mortgage Loans?

Millions of American veterans and active duty military members are eligible for the VA Loan Guaranty Program. But fewer than 10 percent of the country’s 24 million veterans have taken advantage of their entitlement.

Many veterans think they’re ineligible for benefits. Others don’t know how to apply or where to look for information. In fact, a 2004 VA survey found that 20 percent of veterans weren’t even aware of the home loan program’s existence.

The sad reality is millions of military members who bravely served our country are still missing out.

Anyone who meets the following criteria is eligible to qualify for a VA loan:

• Military members who have served 181 days on active duty or three months during war time may be eligible.
• People who have spent at least a half-dozen years in the National Guard or Reserves
• Spouses of those killed in the line of duty

Prospective borrowers who meet the criteria must first obtain a Certificate of Eligibility from the VA. The COE is a formal military document that essentially verifies an applicant’s entitlement to participate in the program.

These forms can be found online at the VA website or through qualified VA lenders and brokers.

Not everyone who qualifies will wind up obtaining a VA loan. But those who do qualify have access to one of the most flexible and powerful lending options in the country.

What Can VA Loans Be Used For?

VA loans are surging in popularity nationwide, as more and more veterans turn to these low-cost loans in the face of a hardened credit market and a declining economy. Qualified buyers can purchase a home with no down payment and enjoy an array of significant financial benefits, from no private mortgage insurance to closing costs paid by the seller.

While VA loans are flexible, there are some limitations. These government-guaranteed loans can be used for a range of purposes that fit the needs of most military members and their families. But veterans and active duty military cannot use their VA entitlement for certain types of purchases.

First, here’s a look at the acceptable uses of a VA loan:

• To buy, build or refinance an owner-occupied residence
• To refinance an existing VA-guaranteed or direct loan
• To repair, alter or improve a veteran-owned residence
• To simultaneously purchase and improve a home
• To buy a single-family residential unit in a VA-approved condominium development
• To buy a farm residence owned and occupied by the veteran

So, VA loans are applicable for a range of uses for military members and their families. The main thrust of the program is home purchasing and refinancing. There are options for purchasing manufactured homes, but there are specific criteria regarding the units and lending institutions have become increasingly wary of these types of loans.

Now, here’s a look at the non-acceptable purposes of VA Loans:

• Land loans
• Investment properties
• Buying or building a combined residential and business property unless
• The property is primarily residential, with no more than one business unit and a nonresidential area that doesn’t exceed 25 percent of total floor space
• Buying more than one separate residential unit or lot unless one is owner-occupied and there’s evidence that:
• The units are not available separately
• The units have a common owner, were considered one unit in the past or are assessed as one unit

How Much Can I Borrow With My VA Loan?

As with any home loan, the final loan amount will vary based on a number of factors, including an applicant’s financial standing and credit score.

Underwriters will generally seek to identify and verify income that can be used to cover the mortgage payment; other shelter expenses; debts and obligations; and family living expenses. They will also seek to verify that the income is stable, reliable and likely to continue.

The VA has a lending limit in place that varies by geography. In most parts of the country, the loan limit is $417,000. There are higher limits in some of the nations’ more expensive real estate markets. In those markets, the VA Loan limit is $1,094,625.

In essence, qualified buyers who want to purchase a home above the loan limit are on the hook for covering the difference. There are also jumbo loan options available.

A Las Vegas Real Estate Broker and two homeowners have been charged with violating the Fair Housing Act by the U.S. Department of Housing and Urban Development (HUD).  They allegedly denied a single mother of (7) the opportunity to rent a four bedroom home because of the number of children she had.  It’s a violation of Fair Housing to discriminate based on family status as well as the number of children.  They could be facing civil penalties and/or punitive damages if it is determined discrimination has occurred. Read More

Mountain’s Edge was the top selling master planned community in the country for 2008. An impressive feat considering the tumultuous real estate market in Southern Nevada as of late.

Mountain’s Edge sits on 3500 acres of land in the Southwest part of the Las Vegas Valley. 550 acres have been set aside for parks and future community amenities. Six schools are planned for the community, with two elementary schools already up and running. There are more than a dozen builders offering 76 different models for sale. On top of that there are roughly 272 resale homes currently for sale in the community.

Like any community there are pros and cons to living in Mountain’s Edge. Some features can be both a positive and a negative at the same time. For example Mountain’s Edge maintains strict zoning and property standards. As well as generous and well maintained common areas. These features tend to help maintain property values into the foreseeable future. The down side to this is that there is (usually) more than one association fee. One for the sub-division and one for the master planned community. In Mountain’s Edge there is also a SID (Special Improvement District). A SID is basically a bond taken out to raise money for infrastructure (roads, sidewalks, utilities, etc.). All homeowners agree to pay back the SID over a specified period of time until it is paid off or they sell the house. SID balances are transferable to the new owners when the home is sold.

Mountain’s Edge is well named as it sits tucked up against the mountains in the Southwest corner of the valley. Some would say it is a little isolated with limited shopping and minimal road access. Both factors which will be addressed over time with increased local shopping options and the extension of Rainbow Boulevard (a major north-south Boulevard in Las Vegas).

This blog was intended to give the reader a brief overview of Mountain’s Edge. In future blogs, I will address in more detail, other relevant facts and features about the community.

My name is Greg Hoffman and I have lived in Las Vegas for the past 19 years. I have been a Realtor here for the past 10 years. I welcome your comments and questions. 702-683-6913.

The 18th annual Las Vegas Bowl sponsored by MAACO  pits No. 15 BYU against No. 16 Oregon State.  For the fifth straight year all the tickets have been sold out.  Fans can still contact BYU and Oregon State ticket offices for seats to the game.  The game will be played on December 22nd and a crowd of 40,000 is expected.  The game kicks off at 5 pm and will be televised nationally on ESPN. Read More

Next time a real estate agent shows up at your door and advises you need to move out as the home has been foreclosed, ask them if it is a Fannie Mae-owned foreclosure.  If it is, you can inquire about a month to month lease with Fannie Mae and stay in your home.  By signing a month to month lease, this will give you an ample amount of time to locate a new property to rent or purchase without the stress of having to vacate immediately.

To qualify, renters must live in foreclosed properties at the time Fannie Mae acquires the property. Any single-family property is eligible including two- to four-unit properties, condos, co-ops, single-family detached homes and manufactured housing. The properties must meet state laws and local code requirements for a rental property. Fannie Mae will not require security deposits. The properties will remain on the market for sale.

Fannie Mae will hire a real estate broker or property manager to manage the property and rental rates will be comparable to rents in the area.  If comparable rental rates are higher than what you are currently paying, Fannie Mae will look into a mutual resolution.  They will not require a security deposit which is nice as it won’t tie up any funds needed to secure a new residence.

For more information on this program, visit Fannie Mae.

One of the premier views on the Las Vegas Strip!  Sky Las Vegas is a sheik building located right on the boulevard.  This corner unit is on the 15th Floor and looks out directly at the famous Las Vegas Strip.  Sky Las Vegas has all the amenities you expect, such as valet, professional front desk service, fitness area, pool with four cabanas, spa, private theater for up to fifteen people, business center and racquetball courts.

The Short Sale: An Under-Utilized Method to Avoid Foreclosure

We have an epidemic of foreclosures in America. Las Vegas, Nevada has been leading the pack in this grim statistic for over two years. I was at a real estate conference in Las Vegas last week and one of the panelists who consults on a committee working with the government made a comment which stunned me, 80%-85% of homes that are foreclosed across the nation were never listed on their local MLS (Multiple Listing Service) as a short sale prior to being foreclosed.

Many sellers who are stuck underwater usually end up feeling powerless after fighting within the system, and eventually give up. Sellers need to know that there are still options open to them that involve little or no cost which may save them from a foreclosure or even bankruptcy. Your REALTOR assumes the burden of dealing with your bank on your behalf, but the results can offer a buyer a much quicker return to normalcy.

A short sale is when a homeowner sells a property for less than is owed on the current mortgage. Permission must be obtained from the seller’s lien holders to do so, but if successful, foreclose is avoided. The process is complex, but the results are far more favorable to a seller than foreclosure. Under short sale, the debt is usually settled in contrast to a foreclosure where the bank gets the home back, but the issue of the debt is not settled and the bank may have strong recourse available to them to pursue the unpaid debt depending on State law. You will have to consult with an attorney on these issues.

People who know they have to alter their loans to maintain their ownership engage in an activity known as a “workout” of their loan. Most major workout options consist of the following:

1. Repayment of past due payments
2. Forbearance (temporary suspension of payments)
3. Loan modification
4. Short sale
5. Deed-in-Lieu of foreclosure. Investment homes are not eligible. Borrowers voluntarily give the property back to the bank. This is however, still a foreclosure.

With over 4 million foreclosure filings expected in 2010, alternatives to foreclosures are being encouraged by the Federal Government. In a market like Las Vegas, where plummeting property values have excluded many homes owners from curative programs such as Hope For Home Owners, the short sale is a viable option for many homeowners who know they cannot maintain the mortgage.

Sellers, go seek counseling on all the potential options up front. You want to move from one option to the next rather than try only one, stop to learn the next, and on an on. The problem with this strategy is you will run out of time to really mount a successful short sale effort. Don’t wait until two weeks before your home is due to be foreclosed and then try to take a stab at a short sale.

Going back to the original statistic that over three quarters of people who lose their home did not try to sell it demonstrates that the public is unaware or at the least uninformed that they can work with their bank to sell it, rather than have the bank simply come and take it!

Please contact Sena and Associates at 702.376.0088  for a free consultation on short sales and whether it may be a good option for you.

After much speculation within the industry, news out of Washington D.C. this week confirmed that Senate is moving forward on extending the $8,000 first time home buyer tax credit. The Senate still has to approve the measure; however, it appears to have bi-partisan support amongst Republicans and Democrats. Read More

Unfortunately, the misconceptions many sellers in Las Vegas may have about this question often prevents them from pursuing one of the best options to a foreclosure—the short sale. They just assume that they won’t be able to pay any closing costs, have the money to cover buyer requested repairs and mostly believe they cannot afford a REALTOR.

In reality, if the seller’s bank approves a short sale, they will allow for the majority of these costs to be taken right out of the sales proceeds, including the REALTOR’s commission! In some cases, the seller may never have to contribute any money at all.

Now that being said, there is no guarantee that a seller will never have to contribute something to the closing. If you’re interviewing prospective real estate agents to list your property, and they tell you this, run! No REALTOR can make such a guarantee. You don’t even have an offer yet; you don’t have an appraisal; the bank has not evaluated the seller’s financial profile; and lastly, you certainly don’t yet have an offer from the seller’s bank with the terms of the short sale they are willing to accept.

Example:

Seller has a home on the market as a short sale for $200,000. The bank usually allow for many of these costs to come directly out of the $200,000.

• Escrow and Title fees
• Title Insurance
• REALTOR Commissions
• Taxes (both property and transfer taxes)
• Home Owner Association fees
• Legal Fees (if applicable)

I always try to minimize any potential costs my sellers will have to incur, and present in a straightforward manner, exactly what the benefits and negatives of the seller covering a certain cost, so that the seller can make an informed decision.

In the current Las Vegas real estate market, we are literally trying to settle hundreds of thousands of dollars of debt per property, so in some cases, the sellers may have to contribute something and should not automatically expect that they will not have to contribute in some fashion. When you look at what is often asked from sellers as compared to how much debt is being settled, the amounts are often staggeringly meager.

Earnest money deposit (EMD) is the amount of money the seller has REQUESTED as a deposit to agree to sell you their house. Consider it a sign of good faith that you, the buyer, will go through with the purchase once you initiate the offer. Remember, by agreeing to your offer the seller has severely limited their ability to market their house for sale during the time you requested to close the transaction.

The EMD REQUESTED is always listed on the Multiple Listing Sheet (ask your realtor to see it). I capitalized requested to highlight the fact that EMD amounts are not set in stone. Almost everything is negotiable in this transaction and EMD is no exception. Offering to small an EMD can paint you as an insincere buyer. It also may cause you to lose the purchase to a competing offer with a higher EMD. Conversely, I always advise my clients not to offer any more of an EMD then is requested from the seller. Why risk a penny more of your money then you have to? If you ever have to default (breach the contract without an acceptable reason) you could lose your EMD.

Always make sure you have the money in the bank before you submit a check with your offer. The EMD will be turned over to the title company (usually within one day of acceptance of your offer) and they will cash it shortly thereafter. They place the money in a trust account until it comes time to close the transaction or until it is requested by either the buyer/seller.  An interesting side note, even veterans (doing a dollar down VA loan) have to put down an EMD. The same rules mentioned above apply to veterans as well (though they have slightly greater protections in regards to potentially losing their EMD).

The down payment is the amount of money the LENDER requires that the buyer put into the purchase of the property. For example, on an FHA backed mortgage the lender requires that the buyer put down 3.5% of the purchase price. In return, the lender agrees to finance 96.5% of the purchase price for the buyer. The seller DOES NOT dictate what  the down payment requirement is.

If the EMD is more then the required down payment, then the extra money can be used for other things. It can be used to pay for closing costs (including buying down the interest rate) or it can be partially refunded at close of escrow. Another important difference between EMD and down payment is the time in which the two types of funds most be committed. EMD most be submitted with the offer and down payment is usually required at close of escrow (at the end of the transaction).

Always check with your local professionals as laws and procedures vary from state to state. My name is Greg Hoffman. I have lived in Las Vegas for 19 years and I have been a Realtor here for 10 years.