Buying a home is one of the biggest financial decisions you’ll ever make—and choosing the right loan type is just as important as finding the right house. In Nevada, buyers have several popular mortgage options, each designed for different financial situations and goals.
Here’s a breakdown of the three main loan types—FHA, VA, and Conventional—and how to decide which one fits your needs best.
FHA Loans: Ideal for First-Time or Low-Down-Payment Buyers
FHA loans are backed by the Federal Housing Administration and designed to make homeownership more accessible.
Key Features:
- Low down payment: As little as 3.5% down if your credit score is 580 or higher.
- Flexible credit standards: Great for buyers with limited credit history or past credit challenges.
- Assumable loans: If you sell, the buyer can take over your FHA loan (a big plus if rates rise).
Considerations:
- Mortgage insurance (MIP): Required for all FHA loans, regardless of down payment.
- Loan limits: FHA has specific limits per county (for 2025, around $498,257 in Clark County).
- Property standards: The home must meet FHA safety and condition requirements.
Best For: First-time buyers or those with moderate credit who need flexible qualification options.
VA Loans: A Top Choice for Veterans and Active-Duty Service Members
The VA loan is one of the most powerful home loan programs available—exclusive to veterans, active-duty service members, and eligible surviving spouses.
Key Features:
- No down payment required (in most cases).
- No monthly mortgage insurance (PMI).
- Competitive interest rates.
- Flexible credit and DTI guidelines.
Considerations:
- VA funding fee: Usually 2.15% (can be financed into the loan); waived for disabled veterans.
- Primary residence only: VA loans can’t be used for vacation or investment properties.
- Property type restrictions: Some condos and high-rises in Las Vegas may need VA approval.
Best For: Veterans and active-duty buyers who want zero down and the lowest long-term costs.
Conventional Loans: Best for Strong Credit and Flexible Property Choices
Conventional loans are not government-backed. They’re issued by private lenders and follow guidelines set by Fannie Mae and Freddie Mac.
Key Features:
- Down payments as low as 3% (for qualifying first-time buyers).
- No upfront funding fees.
- Can remove PMI once you reach 20% equity.
- Flexible property types: Single-family homes, condos, and even investment properties.
Considerations:
- Credit requirements: Generally need a score of 620+, though higher scores earn better pricing.
- Stricter DTI limits: Your total debt load should stay below 45–50%.
- Higher rates for smaller down payments or lower credit.
Best For: Buyers with solid credit, stable income, and the ability to put more down for long-term savings.
Which Loan Is Right for You?
| Loan Type | Minimum Down | Credit Flexibility | Mortgage Insurance | Best For |
| FHA | 3.5% | Most flexible | Required for life of loan | First-time or lower-credit buyers |
| VA | 0% | Flexible (for veterans) | None | Veterans, active-duty, surviving spouses |
| Conventional | 3% | Moderate to high | Removable at 20% equity | Strong-credit or repeat buyers |
Loan Options in the Las Vegas Market
Nevada buyers benefit from multiple loan choices—and local market conditions make some stand out:
- VA loans are extremely popular near Nellis and Creech Air Force Bases.
- FHA loans help first-time buyers compete as rents rise across the valley.
- Conventional loans dominate luxury and high-rise financing where FHA/VA restrictions apply.
Working with a knowledgeable local lender ensures you’re matched with the best program for your budget, credit, and long-term goals.
Final Thoughts
There’s no one-size-fits-all mortgage. The right loan depends on your credit, income, goals, and how long you plan to stay in the home. Whether you’re a first-time buyer, veteran, or move-up homeowner, knowing your options can save you thousands over the life of your loan.
If you’re ready to compare FHA, VA, and Conventional loans side-by-side, connect with The Derek Parent Team. We’ll walk you through your numbers, explain your choices, and help you find the loan that fits your life—not just your home.