Conventional Home Loans in Las Vegas, Nevada

Typically, a credit score of 620 or higher is required for conventional loans. However, stronger credit scores (680+) often qualify for better interest rates and terms. A score of 740+ typically unlocks the most competitive pricing. If your credit is below 620, consider exploring FHA loan options which may have more flexible credit guidelines.

Conventional loans can require as little as 3–5% down for qualified buyers. However, putting down 20% or more typically eliminates the need for private mortgage insurance (PMI), which can save you money monthly. The exact down payment requirement depends on your credit profile, loan amount, and property type.

Private Mortgage Insurance (PMI) is typically required when you put down less than 20% on a conventional loan. It protects the lender if you default on the loan. PMI costs vary based on credit score, down payment, and loan amount—typically 0.3%–1.5% of the loan amount annually.

You can request PMI removal once you reach 20% equity in your home (through payments or appreciation). PMI automatically terminates at 22% equity. This is a key advantage over FHA loans, where mortgage insurance may remain for the life of the loan.

Typical closing timelines for conventional loans in Nevada range from 30–45 days from application to closing. Factors that can affect this timeline include property appraisal scheduling, underwriter workload, how quickly you provide requested documents, and whether any conditions need to be cleared. Having your documentation organized and responding quickly to lender requests can help ensure a smooth, on-time closing.

Yes, conventional loans can be used for primary residences, second homes, and investment properties. However, investment property loans typically require larger down payments (15–25%), higher interest rates, and more stringent qualification requirements compared to primary residence loans. You'll also need stronger credit and more cash reserves.

Conventional loans are not government-backed and typically require higher credit scores (620+) and down payments. FHA loans are government-insured and may allow credit scores as low as 580 with 3.5% down (if eligible).

Key differences: Conventional loans offer PMI removal once you reach 20% equity, while FHA mortgage insurance may remain for the loan's life. Conventional loans often have lower total costs for buyers with strong credit and sufficient down payment. Learn more about FHA loans to compare which is best for your situation.

You'll typically need:

• Recent pay stubs (last 30 days)
• W-2 forms (last 2 years)
• Tax returns (last 2 years, especially if self-employed)
• Bank statements (last 2 months)
• Photo ID (driver's license or passport)
• Proof of additional assets (retirement accounts, investments, etc.)

For most Nevada counties including Clark County (Las Vegas area), the 2025 conforming loan limit for a single-family home is $806,500. Loans up to this amount typically qualify for the best conventional loan rates and terms. Loan amounts above this limit are considered "jumbo loans" and have different qualification requirements and typically higher interest rates.

Yes, self-employed borrowers can qualify for conventional loans. Lenders typically require 2 years of tax returns to verify income stability. Your qualifying income is usually based on the average of your adjusted gross income over the past 2 years. Clean, well-organized tax returns showing consistent or increasing income strengthen your application. Be prepared to explain any significant income fluctuations.

Your debt-to-income (DTI) ratio compares your monthly debt payments to your gross monthly income. Most conventional loans require a DTI of 43–50% or less, though specific limits vary by lender and compensating factors. A lower DTI improves your chances of approval and may help you qualify for better rates. To calculate: add up all monthly debt payments (credit cards, auto loans, student loans, proposed mortgage payment) and divide by gross monthly income.

Closing costs typically range from 2–5% of the purchase price. These include loan origination fees, appraisal fees, title insurance, escrow fees, prepaid property taxes and insurance, and recording fees. On a $400,000 home, expect closing costs of approximately $8,000–$20,000 (not including your down payment). In some cases, sellers may agree to contribute toward your closing costs as part of the purchase negotiation.

The choice depends on your financial goals and monthly budget:

30-year mortgage: Lower monthly payments, more flexibility in your budget, but higher total interest paid over the life of the loan. Best for buyers prioritizing lower monthly costs or investing extra cash elsewhere.

15-year mortgage: Higher monthly payments but significantly lower total interest cost and faster equity building. Typically offers lower interest rates. Best for buyers with stable, higher income who want to build equity quickly and pay off their home faster.