There are three components of a Las Vegas mortgage approval:
Loan-to-Value Ratio (LTV)
This is the difference between the loan amount and the lesser of the purchase price or appraised value. Most Las Vegas mortgage loans require a minimum of 10% down for conventional mortgage and 3.5% for a Las Vegas FHA loan. VA still has a zero down – 100% financing option.
Debt-to-Income Ratio (DTI)
To calculate your DTI ratio, simple divide your total monthly credit obligations, including the new mortgage payment, by the total verifiable monthly gross income.
Example Debt-to-Income scenario:
- Total monthly liabilities on credit report + mortgage payment, taxes, hazard insurance, HOA = $410.00
- Total monthly gross income (this is verified from two year’s tax returns or W2′s and most recent 2 pay stubs) = $1000.00
Your total DTI would be 41% ($410 / $1000 = 41%)
Banks like to see a borrower between a 41% and 48% DTI.
Credit Score (Fico)
Credit reports are pulled through three bureaus and reflect a middle “FICO” score that mortgage lenders use to determine risk factor and base their approval, required down payment, and interest rate on.
Payment history, length of open accounts, and total debt load are important factors that contribute to the overall score.
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Top 5 Las Vegas Mortgage Links / Articles / Questions
- Las Vegas First-Time Home Buyer Frequently Asked Questions
- Las Vegas Mortgage – How Much Can I Borrow?
- What Are The Current Mortgage Interest Rates?
- Applying For A Las Vegas Mortgage – Required Documentation?
- How Does The Mortgage Approval and Funding Process Work?
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Raintree Mortgage (Las Vegas)
9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
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