Most Nevada conventional loan questions come down to the same handful of topics: down payment, PMI, credit, conforming limits, the appraisal, reserves, and pre-approval — plus how conventional stacks up against FHA and VA. This FAQ hub gives plain-English answers to the questions we hear most often from Las Vegas, Henderson, North Las Vegas, and Reno buyers, and links you to the deeper guide behind each one. A conventional loan is simply a mortgage that isn't insured or guaranteed by a government agency like the FHA or VA; most are conforming loans that follow Fannie Mae and Freddie Mac rules, allow as little as 3% down, and use PMI that cancels as you build equity. Every figure below is an illustrative example — not a quote, offer, commitment to lend, or tax advice.
- 3% down is real: eligible Nevada buyers can put down as little as 3% on a conventional loan — the 20%-down rule is a myth.
- PMI is temporary: under the federal Homeowners Protection Act, conventional PMI is auto-terminated at 78% of original value and can be requested for cancellation at 80% — and it's priced by credit and loan-to-value, not a flat rate.
- Credit starts around 620, but a higher score lowers your PMI and pricing, not just your odds of approval.
- 2026 conforming limit is $832,750 for a one-unit home across Nevada, per the FHFA; above it you're in jumbo territory.
- Best loan = whole file: conventional vs. FHA vs. VA depends on credit, down payment, mortgage insurance, and how long you keep the loan — compare the full payment, not the label.
- A conventional loan is a non-government mortgage; most are conforming (Fannie/Freddie).
- You can buy with as little as 3% down; under 20% means PMI, which cancels as equity grows.
- The 2026 conforming limit is $832,750 for a one-unit Nevada home (FHFA); above it is jumbo.
- Credit usually starts near 620, and a higher score lowers your PMI and pricing.
- All numbers here are illustrative; your real terms depend on your income, debts, down payment, and rate.
Key terms in plain English
A few words on this page can sound technical. Here is the simple version before you go deeper.
- Conventional loan
- A mortgage not insured or guaranteed by a government agency such as the FHA, VA, or USDA.
- Conforming loan
- A conventional loan that fits Fannie Mae or Freddie Mac size and guideline limits.
- PMI
- Private mortgage insurance. It is commonly required when a conventional buyer puts less than 20% down.
- LTV
- Loan-to-value ratio. It compares the loan amount to the property value or purchase price.
- Reserves
- Savings left over after your down payment and closing costs, measured in months of mortgage payments.
- Cash to close
- The total money needed at closing, including down payment, closing costs, prepaids, and escrow deposits.
How much down payment do I need for a conventional loan in Nevada?
Eligible Nevada buyers can put down as little as 3% on a conventional loan for a primary residence — the widely repeated "you need 20%" rule is a myth. A 3%-down program is aimed at buyers with solid credit and limited savings; 5%, 10%, and 20% down are all common too. The trade-off is simple: the less you put down, the more you borrow, and any down payment under 20% means paying PMI until you build enough equity.
Here's an illustrative look at how down payment size moves the numbers on a $450,000 Las Vegas home. These are examples to show the mechanics — not a quote, offer, or commitment to lend.
| Down payment | Cash down | Loan amount | PMI? |
|---|---|---|---|
| 3% | $13,500 | $436,500 | Yes, until ~20% equity |
| 5% | $22,500 | $427,500 | Yes, until ~20% equity |
| 10% | $45,000 | $405,000 | Yes, until ~20% equity |
| 20% | $90,000 | $360,000 | No PMI |
Which is "right" depends on your savings, your reserves after closing, and how long you plan to keep the loan. Our conventional down payment guide for 2026 walks every option, including down payment assistance and gift funds.
The most common myth we hear across Nevada is that "conventional" means "20% down and perfect credit." It doesn't. Plenty of Las Vegas and Henderson buyers close with 3% or 5% down and a mid-600s score. Our job as a local mortgage company is to compare the whole payment — conventional, FHA, and VA where eligible — before you commit to one path.
How does PMI work on a conventional loan, and when does it come off?
Private mortgage insurance (PMI) is a premium a conventional borrower pays when the down payment is less than 20%. It protects the lender if you default — it does not protect you — and the single most important thing to understand is that PMI is not a fixed rate: its cost varies by your credit score, loan-to-value ratio, and loan type, so no two borrowers pay the same.
The good news is that conventional PMI is temporary. Under the federal Homeowners Protection Act, PMI on most loans must be automatically terminated once your loan balance reaches 78% of the home's original value, and you can request cancellation at 80%. That's a defining advantage over FHA loans, where mortgage insurance often lasts the life of the loan. For how it's priced and exactly when it drops off, read our PMI guide for Las Vegas, Nevada, or compare paths in our PMI vs. LPMI vs. 20% down break-even guide.
What credit score do I need for a conventional loan in Nevada?
Conventional loans in Nevada generally look for a credit score of at least 620, but treating that as a simple pass/fail line misses the point. Your score doesn't just decide whether you qualify — it drives your PMI cost and your pricing. A 760 score and a 640 score can both get approved, but the higher score usually pays meaningfully less mortgage insurance and gets better terms.
Credit is only one leg of the file. Underwriting also weighs your debt-to-income ratio, income stability, down payment, reserves, and the property itself. If your score is close to the line, small moves can change your pricing before you ever apply — our guide on what credit score you need to buy a house in Las Vegas in 2026 breaks down the bands and what to do about them. Self-employed or 1099? See how income is documented in our self-employed and 1099 mortgage guide.
What is the 2026 conforming loan limit in Nevada?
According to the Federal Housing Finance Agency (FHFA), the 2026 baseline conforming loan limit for a one-unit property is $832,750, and this baseline applies to Clark County, Washoe County, and nearly all of Nevada. FHFA raised the limit from $806,500 in 2025 after national home prices rose about 3.26% between the third quarters of 2024 and 2025. A conventional loan up to $832,750 is conforming; a loan above it is generally a jumbo loan with its own guidelines.
The limit is higher for multi-unit homes, and it resets every year. Here's how the 2026 Nevada (baseline) conforming limits break down by property size:
| Property type | 2026 conforming limit |
|---|---|
| One-unit (single-family) | $832,750 |
| Two-unit (duplex) | $1,066,000 |
| Three-unit | $1,288,600 |
| Four-unit | $1,601,450 |
For a deeper look at where this ceiling sits, read our Nevada conforming loan limit guide for 2026. If your purchase price pushes past the one-unit limit — common in higher-priced Summerlin or Lake Las Vegas — you're in jumbo loan territory with its own rules.
What does the appraisal review on a conventional loan?
A conventional appraisal focuses on the property's market value and whether it supports the loan amount, using recent comparable sales in the local Nevada market. The appraiser confirms the home is worth what you've agreed to pay (or refinance against) and notes obvious condition issues, but a conventional appraisal is not a home inspection — it doesn't test the roof, HVAC, or plumbing the way an inspector does.
Conventional appraisals are generally less strict about property condition than FHA or VA appraisals, which have minimum property standards a home must meet. That's one reason some Nevada sellers prefer conventional offers — fewer condition-related surprises. It's also why you should still get your own home inspection: the appraisal protects the lender's collateral, not your peace of mind about the house.
Do I need cash reserves for a conventional loan?
Cash reserves are savings you still have after your down payment and closing costs, usually measured in months of mortgage payments. Whether a conventional loan requires them depends on the file: many primary-residence conventional loans need few or no reserves, while second homes, investment properties, and higher-risk files often require several months of payments in the bank.
Even when they aren't required, reserves strengthen a borderline approval and give you a cushion for the first surprise after closing — a repair, a job gap, a rate you didn't plan for. If you're weighing a second property, our second home loan guide and investment property loan guide explain where reserve requirements typically rise. When you're ready to organize the full file, the conventional loan requirements and prep guide lists every document.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of what you might borrow based on numbers you share, while pre-approval is a documented review of your income, assets, and credit that carries far more weight. In a competitive Nevada market, sellers take a real pre-approval seriously because it shows a lender has actually verified your file — a guess won't win a multiple-offer situation in Las Vegas or Henderson.
Getting pre-approved early also surfaces any credit or documentation issues while there's still time to fix them. A pre-approval is not a final loan commitment, which comes after full underwriting and property approval. Our guide on pre-approval vs. pre-qualification in Las Vegas walks the difference in detail, and the how much house can I afford in Las Vegas tool turns your income into a purchase-price range.
Tell us your credit range, down payment, and target price and we'll verify your file and build your conventional payment — PMI and all — so you can write a Nevada offer that sellers take seriously. Soft credit check to start — no impact to your score. All loans are subject to credit, income, property, and underwriting approval; figures are illustrative, not a quote, offer, or commitment to lend.
Get pre-approvedIs a conventional or FHA loan better in Nevada?
Neither loan is automatically better — the right choice depends on your credit, down payment, and how long you'll keep the loan. Conventional loans tend to fit buyers with stronger credit because PMI can be removed at 20% equity, while FHA loans open the door to lower credit scores and down payments but carry mortgage insurance that often stays for the life of the loan. Here's a side-by-side of the general characteristics:
| Feature | Conventional | FHA |
|---|---|---|
| Backed by | Fannie Mae / Freddie Mac (private) | Federal Housing Administration |
| Minimum down payment | As little as 3% | As little as 3.5% |
| Typical minimum credit | Around 620 | Often 580 (lower with more down) |
| Mortgage insurance | PMI — cancels at ~20% equity | MIP — often for the life of the loan |
| Upfront insurance fee | None | Upfront MIP financed into the loan |
| Appraisal / property rules | Value-focused, generally flexible | Minimum property standards apply |
| Best for | Stronger credit, wants MI to drop off | Lower credit or minimal down payment |
A buyer with a 760 score and 10% down may pay less on conventional; a buyer with a 640 score may find FHA more accessible. The only way to know is to compare the full monthly payment on both. Our conventional vs. FHA in Nevada guide walks the decision in detail, and buyers weighing both often start with our North Las Vegas conventional loan guide. Not affiliated with or endorsed by the FHA, HUD, or any government agency.
Is a conventional or VA loan better if I qualify for both?
For most eligible veterans and service members, a VA loan is hard to beat because it allows zero down and has no monthly mortgage insurance — but a conventional loan can still be the better tool in specific cases. VA loans are limited to primary residences you occupy, so a conventional loan is the path for a second home or investment property. Some buyers also choose conventional to preserve VA entitlement for a future move.
If you qualify for both, compare the full cost: the VA one-time funding fee against conventional PMI, and the zero-down VA payment against a conventional payment with a down payment. On a primary home with little savings, VA usually wins; when VA isn't available or you're weighing a larger down payment, conventional can pull ahead. Valley West is not affiliated with or endorsed by the U.S. Department of Veterans Affairs. Eligible buyers can compare VA options at our sister site, VA Home Loans by Valley West.
Can I use gift funds for a conventional down payment?
Yes — conventional loans generally allow gift funds from an eligible donor such as a family member for your down payment, and on many programs the entire down payment can be gifted. Your lender will ask for a gift letter stating the money is a gift and not a loan, along with documentation of the transfer, so plan for that paper trail before the funds move.
Rules on who can give a gift and how much can be gifted vary by loan program, occupancy, and down payment amount, and gift funds are subject to underwriting approval. Down payment assistance can work alongside your own savings too — see our Las Vegas down payment assistance guide and the conventional down payment guide for how gifts, assistance, and reserves fit together. New to the whole process? Start with the first-time home buyer guide for Las Vegas.
Conventional loan term glossary
Conventional lending has its own vocabulary. Expand any term below for a plain-English definition — these are the words that show up most often on a Nevada conventional file.
Conventional loan
A mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is backed by private lenders and, in most cases, sold to Fannie Mae or Freddie Mac.
Conforming loan
A conventional loan that meets Fannie Mae and Freddie Mac guidelines, including the annual loan-limit set by the FHFA. In 2026 the one-unit baseline across Nevada is $832,750.
Jumbo loan
A conventional loan above the conforming limit. It is held in a lender's portfolio and typically asks for a larger down payment, stronger reserves, and a higher credit score.
PMI (private mortgage insurance)
A premium a conventional borrower pays when the down payment is under 20%. It protects the lender, varies by credit and loan-to-value, and cancels as you build equity under the Homeowners Protection Act.
LTV (loan-to-value ratio)
The loan amount divided by the property value or purchase price. A 5% down payment means a 95% LTV; PMI generally applies above 80% LTV.
DTI (debt-to-income ratio)
Your total monthly debt payments divided by your gross monthly income. Conforming loans often allow a DTI up to around 45%-50% depending on the overall file.
Reserves
Savings left after your down payment and closing costs, measured in months of mortgage payments. Second homes and investment properties usually require more than a primary residence.
Cash to close
The total money you bring to closing: down payment plus closing costs, prepaids, and escrow deposits. It is almost always more than the down payment alone.
Where these answers come from
Every rule and figure on this page traces to an official source. Use this table to see which authority stands behind each answer, then verify your own situation with a lender.
| Topic | What the source establishes | Primary source |
|---|---|---|
| Conforming loan limit | $832,750 one-unit 2026 baseline for Nevada | FHFA |
| PMI cancellation | Auto-termination at 78%, request at 80% of original value | CFPB / Homeowners Protection Act |
| 3% down & credit | Low-down programs and conventional eligibility | Fannie Mae / Freddie Mac |
| PMI basics | What PMI is and how it's priced | CFPB |
| Homebuyer guidance | General conventional loan education | Fannie Mae / Freddie Mac |
The bottom line
Most Nevada conventional questions have plain answers: you can buy with as little as 3% down, you'll pay PMI that cancels below 20% down, credit usually starts near 620 but shapes your pricing, and you can borrow up to the 2026 conforming limit of $832,750 before entering jumbo territory. Reserves, the appraisal, and a real pre-approval round out the file.
The most valuable move is to compare the full payment across conventional, FHA, and VA — not the loan labels — with a lender who'll show you real numbers. That's the difference between a rule of thumb and a plan you can write an offer on in Las Vegas, Henderson, North Las Vegas, or Reno.
Send us your basics and we'll build your conventional payment — principal, interest, taxes, insurance, and PMI — and compare it against FHA and VA where you're eligible. A pre-approval from a local mortgage company. No pressure, no obligation. Soft credit check to start — no impact to your score. Subject to approval; figures are illustrative, not a quote, offer, or commitment to lend.
Start your applicationFrequently asked questions
How much down payment do I need for a conventional loan in Nevada?
Eligible Nevada buyers can put down as little as 3% on a conventional loan for a primary residence, so the common belief that conventional loans always require 20% down is a myth. A down payment below 20% means paying private mortgage insurance until you reach about 20% equity, when it can be removed. A larger down payment lowers your loan amount, monthly payment, and PMI cost, but the right amount depends on your savings, reserves, and goals. All figures here are illustrative examples, not a quote, offer, or commitment to lend.
How does PMI work on a conventional loan, and when does it come off?
Private mortgage insurance, or PMI, is a premium a conventional borrower pays when the down payment is less than 20%. It protects the lender, not you, and it is not a fixed rate - the cost varies by your credit score, loan-to-value ratio, and loan type. Under the federal Homeowners Protection Act, PMI on most loans must be automatically terminated once the loan balance reaches 78% of the original value, and you can request cancellation at 80%. That makes conventional PMI different from FHA mortgage insurance, which often lasts the life of the loan.
What credit score do I need for a conventional loan in Nevada?
Conventional loans in Nevada generally look for a credit score of at least 620, but your score does more than open the door - it affects your PMI cost and your pricing. A higher score usually means lower PMI and better terms, while a score just above the minimum may cost more. Credit is only one part of the file; lenders also review your income, debt-to-income ratio, down payment, reserves, and the property. Guidelines vary by lender and by your overall file.
What is the 2026 conforming loan limit in Nevada?
According to the Federal Housing Finance Agency, the 2026 baseline conforming loan limit for a one-unit property is $832,750, and this baseline applies to Clark County, Washoe County, and nearly all of Nevada. A conventional loan up to that amount is a conforming loan; a loan above it is generally a jumbo loan with its own guidelines. The limit is higher for two-, three-, and four-unit properties, and the FHFA resets it every year based on national home-price changes.
What does the appraisal review on a conventional loan?
A conventional appraisal focuses on the property's market value and whether it supports the loan amount, using recent comparable sales in the local Nevada market. It is not the same as a home inspection - the appraiser confirms value and notes obvious condition issues, but does not test systems the way an inspector does. Conventional appraisals are generally less strict about property condition than FHA or VA appraisals, which is one reason some sellers prefer conventional offers. You should still get a separate home inspection to protect yourself.
Do I need cash reserves for a conventional loan?
Cash reserves are savings you still have after your down payment and closing costs, usually measured in months of mortgage payments. Whether a conventional loan requires them depends on the file - many primary-residence conventional loans need few or no reserves, while second homes, investment properties, and higher-risk files often require several months. Reserves also strengthen a borderline approval and give you a cushion after closing. Reserve requirements vary by lender, loan type, and your overall profile.
What is the difference between pre-qualification and pre-approval?
Pre-qualification is an informal estimate of what you might borrow based on numbers you share, while pre-approval is a documented review of your income, assets, and credit that carries far more weight. In a competitive Nevada market, sellers take a real pre-approval seriously because it shows a lender has actually verified your file. Getting pre-approved early also surfaces any credit or documentation issues while there is still time to fix them. A pre-approval is not a final loan commitment, which comes after full underwriting and property approval.
Is a conventional or FHA loan better in Nevada?
Neither is automatically better - it depends on your credit, down payment, and how long you plan to keep the loan. Conventional loans tend to fit buyers with stronger credit because PMI can be removed once you reach 20% equity, while FHA loans allow lower credit scores and down payments but carry mortgage insurance that often lasts the life of the loan. A buyer with a 760 score and 10% down may pay less on conventional, while a buyer with a 640 score may find FHA more accessible. The right answer comes from comparing the full payment on both, not the label. Not affiliated with or endorsed by the FHA, HUD, or any government agency.
Is a conventional or VA loan better if I qualify for both?
For most eligible veterans and service members, a VA loan is hard to beat because it allows zero down and has no monthly mortgage insurance. A conventional loan can still make sense in specific cases - for example, on a second home or investment property where VA is not available, or when a buyer wants to preserve VA entitlement. If you qualify for both, compare the full cost including the VA funding fee against conventional PMI before deciding. Valley West is not affiliated with or endorsed by the U.S. Department of Veterans Affairs.
Can I use gift funds for a conventional down payment?
Yes, conventional loans generally allow gift funds from an eligible donor such as a family member for your down payment, and on many programs the entire down payment can be gifted. Your lender will ask for a gift letter stating the money is a gift and not a loan, along with documentation of the transfer. Rules on who can give a gift and how much can be gifted vary by loan program, occupancy, and down payment amount. Down payment source and gift funds are subject to program rules and underwriting approval.
- Federal Housing Finance Agency — FHFA Announces Conforming Loan Limit Values for 2026 ($832,750 one-unit baseline; $1,066,000 / $1,288,600 / $1,601,450 for 2-4 units). fhfa.gov
- Federal Housing Finance Agency — Conforming Loan Limit Values (annual limits and county lookup). fhfa.gov
- Consumer Financial Protection Bureau — What is private mortgage insurance (PMI)? consumerfinance.gov
- Consumer Financial Protection Bureau — Homeowners Protection Act (PMI cancellation and automatic termination). consumerfinance.gov
- Fannie Mae — Homebuyer education and conventional loan resources. fanniemae.com
- Freddie Mac — My Home: understanding conventional and conforming loans. myhome.freddiemac.com
What else should Nevada conventional buyers read?
Start here
Clark County conventional guide
The full local walkthrough of down payment, PMI, limits, credit, and appraisal.
Compare
Conventional vs. FHA (Nevada)
The full side-by-side so you choose on payment, not on the loan label.
PMI
PMI in Las Vegas
How private mortgage insurance is priced and exactly when it drops off.
Limits
Nevada conforming limit (2026)
Where the $832,750 ceiling sits and what happens just above it.
Down payment
Conventional down payment (2026)
3% to 20% down, gift funds, and assistance — the full down payment picture.
Move-up
Las Vegas move-up buyer guide
Sell first or buy first, equity, and the new payment when you're trading up.
Local
Summerlin conventional guide
Conforming vs. jumbo, PMI, HOA dues, and reserves for higher-priced homes.
Get started
See what I qualify for
A pre-approval from a local mortgage company — soft check, no score impact.