Jumbo Loans In Nevada — Three Things You Need To Know

April 18, 2022

Quick Mortgage Quote

Need info about securing a Jumbo Loan in Nevada?

If you're a Nevadan who's in the market for a Jumbo loan, you might feel a little bit overwhelmed. Jumbo loans in Nevada can be tricky to navigate, and there's a lot of information out there that can be confusing. That’s okay! Luckily, Maggie and the team at Greenfront Mortgage are here to help. Jumbo loans in Nevada have a few key differences from those in California, and we're here to break them down for you.

There are differences in property taxes in California and Nevada

Before we dig into the good stuff, we want to give you a quick overview of the differences between California and Nevada property taxes.

How California property taxes are calculated

California property taxes are no joke. In fact, they're one of the most significant expenses that homeowners have to contend with in the Golden State. But how are these taxes assessed? And what exactly do they go towards?

Here's a quick breakdown:

California property taxes are applied to your home's assessed value, which is then used to calculate your tax bill. The assessed value is generally based on the sales price of your home, but it can also be impacted by things like improvements that you've made to the property. Once your home's assessed value has been determined, the tax rate is applied. This tax rate can vary depending on the county, but it's typically around 1.25% of the assessed value. So, homeowners residing in up-and-coming neighborhoods are more likely to see a higher tax rate than those living in more rural areas.

How Nevada property taxes are calculated

Nevada has some of the lowest property taxes in the country, with the average Nevada homeowner paying just 0.60 percent per year in property taxes (less than half the national average). The first thing to understand is that Nevada property taxes are not based on the present-day value of your home. Instead, property taxes will be issued based on the home's original construction date, resulting in far lower taxes for homeowners even if their property has skyrocketed in value since the initial purchase.

There is no state income tax in Nevada

Are you considering moving your business or your family to Nevada? If so, you may be wondering how you can save money on a Jumbo loan. The good news is that there is zero state income tax in Nevada (you’ll still be responsible for Federal taxes), which means more money in your pocket to pay for Jumbo loan-related costs. The difference between CA vs. NV is that Jumbo loan eligibility starts at anything above $647,200 in Nevada. In contrast, California has high balance loan limits that go up to $930,000 before it's considered a Jumbo. There are significant hits on high-balance loans, and they are extremely expensive to get right now, so the more you can save, the better.

For those looking to save money on a Jumbo loan in Nevada, you've found the right mortgage broker to help you navigate the process.

Jumbo loans in Nevada may have tighter restrictions than conventional loans

If you're looking to purchase a home that exceeds the conforming loan limit in your county, you'll need to apply for a Jumbo loan. Jumbo loans in Nevada come with stricter requirements than conventional loans, and you can expect to undergo a more rigorous underwriting process to get your approval pushed through. Here are some of the critical things you need to know about Jumbo loans in Nevada:

Income requirements are typically stricter for Jumbo loans. Lenders will want proof that you have a steady income stream to support the increased loan amount, whereas conventional loans may be more lenient with how much income you're bringing in.
Your debt-to-income (DTI) ratio can be up to 49.99% for conventional loans, 55% for FHA loans, and 43% for USDA loans. This is higher than the DTI limit for conventional loans, typically around 36%, but it's still a good idea to keep your DTI as low as possible to increase your chances of loan approval.
Jumbo loans in Nevada typically have higher interest rates than conventional loans, but that’s not necessarily always the case. The Jumbo market has been very competitive and sometimes has better rates than conforming loans, typically because you have to put more money down on a Jumbo loan.
Jumbo loans are much higher cost than conventional loans and are seen as riskier by lenders, so they charge a higher rate to offset that risk.

If you're looking to apply for a Jumbo loan in Nevada, Maggie can help you navigate the process and get you the best terms possible. Give her a call today to learn more.

< Older Post Newer Post >

What our customers are saying:

Share this post:

A Closer Look at Core Inflation's Grip on Mortgage Rates

February 21, 2024

Explore how core inflation impacts mortgage rates and what it means for Lake Tahoe homebuyers in 2024.

Your Guide to 2024 Mortgage Rates: When Will Rates Finally Come Down?

February 2, 2024

Now that 2024 is here, let's talk about something on everyone's mind: mortgage rates. Last year was a rollercoaster, and we're all wondering where rates are headed next. Understanding these trends is crucial if you're dreaming of a cozy cabin or a lakeside retreat here in our beautiful Tahoe area. We’re here to walk you through what the market suggests will happen with 2024's mortgage rates and what it means for your home buying, selling, or refinancing plans. Let's work together to navigate the complexity of this high-interest mortgage market and make your Tahoe home dreams a reality! Recent Trends in Mortgage Rates – A Quick Recap 2023 was quite the year for mortgage rates , hitting highs we haven't seen in a while. But as we entered the new year, things started looking slightly different. Rates began to cool off, and we're all feeling a bit of relief. This shift is especially interesting for those of us in the Lake Tahoe area. Whether you're thinking about buying that dream home by the lake or refinancing your current spot, these rate changes are big news. Let's take a quick look back at how we got here and what it might mean for our local housing market. Start of 2023: A Steady Descent Early Year Trends: The year kicked off with a gradual rate decrease, starting from 6.48% in January and slightly dipping over the following months. Signs of Stability: This period hinted at a stabilizing market, offering a glimmer of hope for buyers and sellers in the Tahoe area. Mid-Year Surge: Rates Climb Summer Spike: As summer approached, the rates started climbing, peaking at a daunting 7.79% in October — the highest point in 2023. Market Response: This surge impacted the housing market, with potential buyers re-evaluating their plans amid these rising costs. Year-End Relief: A Downward Trend Cooling Off: The end of the year brought some relief , with rates gradually declining to close the year around 6.61%. Market Rebound Hints: This rate decrease started breathing life back into the housing market, stirring interest among potential homebuyers again. 2023 fluctuations in the mortgage market impacted the decisions of buyers and sellers throughout California, Nevada, and the rest of the country. So, we recommend keeping an eye on the Fed’s plans for interest rates for this year. By understanding trends in the market, you’ll be able to plan your next move in the real estate world much more effectively. Federal Reserve's Role and 2024 Mortgage Predictions The Federal Reserve's decisions have a notable impact on mortgage rates. In their December 2023 meeting , their move to pause rate hikes marked a change in the economic climate. To combat inflation, they’ve implemented a strategy involving gradually reducing its substantial balance sheet, which exceeds $7.7 trillion. Specifically, the Fed plans to decrease its holdings by allowing up to $60 billion in Treasury securities and $35 billion in agency mortgage-backed securities to mature monthly without reinvestment. This approach is part of the broader economic measures to stabilize inflationary trends. What this means for you as a homebuyer: The Fed's actions could lead to more stable and potentially lower mortgage rates, making it a more favorable time to consider purchasing a home. Together, we'll explore what this means for mortgage rates in 2024, especially for those in the Lake Tahoe area. Federal Reserve's Influence on Mortgage Rates Rate-Hike Pause: This decision in late 2023 suggests a shift towards stabilizing the economy. Indirect Impact: The federal funds rate indirectly affects mortgage rates. This pause is expected to bring some predictability to home financing. 2024 Mortgage Rate Forecasts Analysts predict a stabilization or slight decrease in rates, a positive sign for borrowers. Predictions suggest rates could stay within the 5.5% to 7% range, a decrease from 2023's highs. Fannie Mae projects ~7% rates throughout Q1 with a steady decline throughout the year as home sales and mortgage originations slowly recover . Local Impact in Tahoe: Such trends could invigorate the real estate market in Tahoe, benefiting both buyers and sellers. Understanding these predictions and the Fed's role is essential for anyone planning to buy, sell, or refinance in the Tahoe region in 2024. When to Refinance Home Loans: Is 2024 the Right Year? Trying to figure out when to refinance a home loan? We can help you navigate that process. Deciding whether to refinance your home loan in 2024 hinges on several factors, including the trajectory of mortgage rates, your current financial situation, and long-term housing plans. With predictions of rates stabilizing or slightly decreasing, 2024 could present opportune moments for refinancing. Assessing Mortgage Rates: Monitor the rates throughout the year. A rule of thumb is to consider refinancing if you can secure a rate ~1% lower than your current rate. Personal Financial Health: Evaluate your credit score, debt-to-income ratio, and overall financial stability. These factors will influence your eligibility for favorable refinance rates and help streamline the approval process . Long-term Goals: Think about how long you plan to stay in your home. Refinancing usually makes the most sense if you intend to stay long enough to recoup the closing costs through the savings gained from a lower interest rate. Market Dynamics: Keep an eye on the Lake Tahoe housing market. Local real estate trends can affect both the feasibility and advantages of refinancing your home loan. Keep in touch with your mortgage broker so you can always make the best financial decisions possible for you and your family. While 2024 might offer promising conditions for refinancing, it’s essential to consider your personal circumstances and the broader market context. A Look Ahead at 2024's Mortgages in Lake Tahoe Our recommendation on everything discussed in this article, especially for our Lake Tahoe region, is to be cautiously optimistic. The anticipated stability in mortgage rates should be a positive signal for both the California and Nevada sides of Lake Tahoe. Potential homebuyers might find more predictable and slightly more affordable borrowing conditions, opening up more desirable purchasing or selling windows for the first time in a few years. For homeowners thinking of refinancing, this also could be your year to lock in a better rate. If you're considering your mortgage options or have questions about financing or refinancing in the Lake Tahoe area, reach out to Maggie for any guidance or information you need — let's make your Tahoe home dreams a reality in 2024!

What Happens to My Mortgage If I Move?

January 8, 2024

What happens to your mortgage if you move? This article walks you through your home financing scenarios when you need to relocate.