First, Last and Deposits — or 1 Percent Down Payment to Buy?

“Home loans are not scary — but renting should be.” That’s what Rick Piette, owner of Las Vegas-based Premier Mortgage Lending believes. And with good reason.

“It amazes me how many people will view those two things in reverse,” Piette explained. “But when you sit down and look at it logically, the benefits of owning a home will win hands-down almost every time.

“Think about it: Renters have to ‘settle’ — a lot,” Piette said. “From dealing with the whims of a landlord about rent increases or ending your lease, to restrictions on how you can actually live in your space. Pets? Maybe. Repair issues? Probably. Plus, there’s no financial gain for renters, no stability. It’s like always living on the edge because you never know what might happen next — or when.

“On the other hand, owning a home has a significant emotional impact, often even more than buyers realize until they experience it. There’s an incredible sense of accomplishment, the knowledge of providing a secure foundation for family, a commitment to a community and having the ability to build the life you choose.

“The financial incentives to own can be just as compelling: investing in yourself instead of your landlord, a fixed mortgage payment that never increases, tax benefits that save you money and the opportunity to potentially build a secure financial future for you and your family.

“All of these things make the desire and decision to own a home the smarter choice. But choosing between the two often hinges on one not-so-little detail: having to save up 5, 10, 20 percent for a down payment.”

Not anymore. Premier Mortgage has a new program, the Conventional 1 Percent Down with Equity Boost loan, that’s eliminating that detail completely.

“This loan program is successfully turning many renters into homeowners. And if you look at the numbers, it’s easy to see why,” Piette said.

“Let’s imagine you find a home to rent for $1,500 per month. By the time you pay the first and last months’ rent, plus security, cleaning, pet and other deposits, it’s probably going to cost you $4,000-plus just to move in.

“But what if, instead, you buy a $285,000 house. Your down payment will be $2,850, and your total monthly mortgage payment (with taxes and insurance) will be about $1,750. However, since you gain tax advantages by owning, your tax-adjusted payment (assuming a typical 25 percent tax rate) would be under $1,400 per month. That means you’ll actually save money on both your initial investment cost and your monthly payment.”

Piette confirms that this new 1 percent down loan program is helping Las Vegas families, including many that never thought it would be possible to save up thousands of dollars for the necessary down payment, get into a home of their own. But now, they’re able to become homeowners while prices are affordable, and interest rates are still at historic lows.

“With only 1 percent down, this program is pretty impressive by itself. But there are some other excellent features that come with it, too. It’s a 30-year-fixed conventional loan, so the mortgage payment never changes. It falls within our ‘no fee’ loan structure, which means borrowers pay zero dollars for loan origination, documents, underwriting and prep fees. And the icing on the cake is the lender contributes an additional 2 percent down so at close of escrow, the buyer has 3 percent equity ownership.

“I’ve spent my entire career as a mortgage lender, and it’s been the rare occasion when renting has been the better option for someone. Even then, though, it would only be as a short-term decision — such as for someone who knows they’ll be relocated soon for work or personal reasons,” he explained.

“Our Conventional 1 Percent Down with Equity Boost Loan program takes a lot of the ‘scary’ out of getting a mortgage loan,” Piette continued. “And when you compare the numbers of renting versus buying with this loan, it’s tough to come up with an argument not to buy a home.”

If saving up a down payment is what’s kept you from switching from renter to owner, Premier Mortgage’s new loan program may be able to help with that transition. To learn more about the qualifying conditions for this loan, visit Premier’s website at 1PercentLoan.com. For additional information or to schedule an appointment to discuss Premier Mortgage Lending’s 1 Percent Down Loan Program, call 702.485.6600, or you can apply online at premiermortgagelending.com.

Premier Mortgage Lending is located in Henderson at 701 N. Green Valley Parkway, Suite 125.