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Most Nevada buyers with strong credit choose Conventional loans for lower costs and no upfront mortgage insurance. FHA works best for credit scores below 620 or limited down payment funds.
3.5%
FHA Min Down
3%
Conv Min Down
580
FHA Min Credit
620
Conv Min Credit
Senior Loan Officer | 16+ Years Nevada Mortgage Experience
David specializes in helping Nevada homebuyers choose between FHA and conventional loans through detailed financial analysis and comparison modeling. Since 2009, he has evaluated over 2,400 loan scenarios for Nevada buyers, with 89% of clients selecting his recommended loan program and saving an average of $18,500 over the first 5 years compared to alternative options. David holds the Certified Mortgage Planning Specialist (CMPS) and Certified Residential Mortgage Specialist (CRMS) designations. He created the proprietary "FHA vs Conventional Decision Matrix" used by Conventional Home Loans Services to analyze which loan type saves Nevada buyers the most money based on credit profile, down payment amount, and long-term homeownership plans in Las Vegas, Henderson, and Reno markets.
Here's how FHA and conventional loans stack up across the factors that matter most to Nevada homebuyers
| Feature |
FHA Loan
|
Conventional Loan
|
|---|---|---|
| Minimum Down Payment |
3.5%
Lower down payment option |
3%
Best for qualified borrowers |
| Minimum Credit Score |
580
More flexible credit requirements |
620
Higher credit needed |
| Debt-to-Income Ratio |
Up to 57%
More lenient DTI limits |
Up to 50%
Stricter DTI requirements |
| Mortgage Insurance |
Required for Life
1.75% upfront + 0.55%-0.85% annual |
Removable at 20% Equity
0.3%-1.5% annual (if <20% down) |
| Interest Rates |
Competitive
Often similar to conventional |
Lower with Good Credit
Better rates for 740+ scores |
| Loan Limits (2026) |
$498,257
Clark/Washoe counties (single-family) |
$806,500
High-balance conforming limit NV |
| Property Standards |
Strict
Property must meet FHA safety standards |
Flexible
Less restrictive property requirements |
| Best For |
First-time buyers, lower credit scores, minimal down payment savings |
Good credit, higher income, ability to put 5-20% down |
Our Nevada mortgage experts will analyze your financial situation and recommend the best loan program to save you the most money
Get Personalized RecommendationFHA loans are backed by the Federal Housing Administration and designed to make homeownership accessible to more people. Here's when an FHA loan makes the most sense for Nevada buyers:
If you're buying your first home in Las Vegas, Reno, or anywhere in Nevada and have limited savings for a down payment, the 3.5% minimum makes FHA loans ideal. You can buy a $350,000 home with just $12,250 down.
With a minimum credit score of 580 (or even as low as 500 with 10% down), FHA loans are accessible to Nevada buyers who may have had past credit challenges, bankruptcies, or foreclosures.
FHA allows DTI ratios up to 57%, meaning you can qualify even if you have student loans, car payments, or other debts that would disqualify you from conventional financing.
FHA allows 100% of your down payment to come from gift funds from family members or approved down payment assistance programs—perfect for Nevada first-time buyer grants.
Maria, a Henderson first-time buyer with a 600 credit score and $15,000 saved, qualifies for an FHA loan on a $380,000 home with 3.5% down ($13,300). Her parents gift her the additional funds needed for closing costs. With a conventional loan, she would have needed a 620 credit score minimum and likely a larger down payment.
Conventional loans are not government-backed and typically require stronger financials. Here's when a conventional loan is your best choice in Nevada:
If you have a credit score of 740 or higher, conventional loans reward you with significantly lower interest rates compared to FHA—potentially saving tens of thousands over the life of the loan.
If you can afford to put 5%, 10%, or 20% down, conventional loans offer better terms and lower mortgage insurance costs. At 20% down, you avoid PMI entirely—something FHA borrowers can't do.
Nevada conventional loan limits are $806,500 in most counties—much higher than FHA's $498,257 limit. If you're buying in expensive areas of Las Vegas or Lake Tahoe, conventional is often your only option.
Conventional loans can finance investment properties and second homes. FHA loans are restricted to primary residences only, so if you're buying a rental property in Nevada, conventional is required.
James and Lisa, a Reno couple with 760 credit scores and $60,000 saved, are buying a $450,000 home. They put 10% down ($45,000) with a conventional loan at 6.25% interest. Their PMI is only 0.4% annually ($1,800/year) and will automatically drop off when they reach 22% equity. With an FHA loan, they'd pay lifetime MIP of 0.55% annually ($2,475/year) that never goes away.
Let's break down the real costs of each loan type on a typical Nevada home purchase to see which saves you more money:
Comparing total costs over 5 years
5-Year Total Cost:
$177,775
(Down payment + upfront MIP + 60 monthly payments)
5-Year Total Cost:
$175,580
(Down payment + 60 monthly payments)
Winner in this scenario:
Conventional loan saves you over 5 years
$2,195
Total Savings
This comparison assumes you can afford the higher $20,000 down payment for conventional. If you only have $14,000 saved, FHA becomes the better option since it gets you into homeownership now. The best loan is the one you can actually qualify for and afford.
The right choice between FHA and conventional depends entirely on your unique financial situation. Here's a simple decision framework:
Get a free consultation with our Nevada mortgage experts. We'll analyze your finances and recommend the loan that saves you the most money.
Get Expert Guidance NowConventional Home Loans Services operates a family of specialized mortgage and insurance websites to serve every Nevada homebuyer need:
Low down payment FHA mortgages for Nevada first-time buyers with flexible credit
Zero down VA mortgages for Nevada military families, veterans, and service members
Conventional mortgages, jumbo loans, and general home financing for Nevada buyers
Nevada homeowners insurance quotes and coverage for desert climate protection
One team, specialized expertise: All four websites are operated by Conventional Home Loans Services (NMLS #65506) to provide Nevada homebuyers with focused, expert guidance for every loan type and insurance need.
Nevada's trusted conventional mortgage lender serving Las Vegas, Henderson, Reno and all of Nevada with competitive rates and expert guidance.
3% down, competitive rates, flexible terms
conventionalhomeloans.services →3.5% down, flexible credit, government-backed
fhahomeloans.services →$0 down, no PMI, for veterans & military
vahomeloans.services →$0 down, rural properties, income limits apply
usdahomeloans.services →
Valley West Mortgage - NMLS #65506
Nevada Mortgage Lender License
Licensed to conduct business in Nevada
NMLS Consumer Access: www.nmlsconsumeraccess.org
We are an Equal Housing Lender. We do business in accordance with the Federal Fair Housing Law and Equal Credit Opportunity Act. This company does not discriminate on the basis of race, color, religion, national origin, sex, marital status, age, or handicap.
This is not a commitment to lend. All loans subject to credit approval. Rates, terms, and conditions are subject to change without notice. Not all applicants will qualify. Additional restrictions may apply. Property insurance required. Flood insurance may be required. This website is for informational purposes only and does not constitute financial advice. Consult with a licensed loan officer for personalized guidance.