Absolutely! This is called an "FHA to conventional refinance" and it's one of the smartest moves Nevada homeowners make. Once you have 20% equity (through appreciation and paying down principal), you can refinance to conventional and eliminate FHA's lifetime mortgage insurance. In Nevada's appreciating markets like Las Vegas and Henderson, many borrowers hit 20% equity within 3-5 years. We help clients do this regularly—saving them $200-300/month for the life of the loan.

Not at all! A 680 credit score qualifies you for conventional loans. While you won't get the absolute lowest rates (those go to 760+ scores), you'll still get competitive rates that beat FHA's long-term costs. Conventional minimum is 620, and we regularly approve Nevada borrowers in the 650-700 range. Your rate will be slightly higher than someone with a 740, but you'll still save compared to FHA's lifetime mortgage insurance.

For most FHA borrowers, yes. If you put down less than 10% (which is almost everyone—the minimum is 3.5%), FHA mortgage insurance premium (MIP) lasts for the entire 30-year loan term. The only way to remove it is to refinance to a conventional loan. If you somehow put down 10% or more on an FHA loan, MIP drops after 11 years. But conventional's PMI automatically cancels at 20% equity (about 5-7 years in Nevada's market), making it far superior long-term.

No. FHA loan limits in Nevada (Clark County, Washoe County, most counties) are $498,257 for a single-family home in 2025. Conventional conforming loans go up to $806,500 in Nevada. So if you're buying above ~$498K, you must use conventional (or jumbo if over $806K). This is one of the main reasons buyers "graduate" from FHA to conventional—as home prices rise, FHA can't keep up with conventional's higher limits.

Conventional loans typically close 5-7 days faster. Average conventional closing: 30-35 days. Average FHA closing: 35-45 days. The difference? FHA requires an FHA-specific appraisal with stricter property standards—sometimes requiring repairs before closing. Conventional appraisals are more straightforward. In Nevada's competitive market (especially Las Vegas), sellers often prefer conventional buyers because they close faster and have fewer appraisal issues.

Paying points makes more sense on conventional loans. Here's why: if you pay points on an FHA loan but plan to refinance to conventional in 3-5 years (to drop MIP), you won't recoup the upfront cost. However, paying points on a conventional loan you plan to keep long-term can save serious money. For Nevada buyers with good credit staying in their home 7+ years, buying down your conventional rate by 0.25-0.5% can save $20,000-40,000 over the loan's life. We run break-even analyses for every client.

Most Nevada sellers prefer conventional buyers, especially in competitive markets like Henderson and Summerlin. Why? Conventional loans close faster (30-35 days vs 35-45 for FHA), have fewer appraisal issues, and pose less risk of deal-killing repair requirements. FHA appraisals can require repairs for peeling paint, minor roof issues, or handrail problems that conventional appraisers overlook. If you qualify for conventional, your offer will be stronger—especially if competing against other buyers.

Yes! Both conventional and FHA loans allow gift funds from family members for your down payment and closing costs. On conventional 3% down loans, the entire 3% can be gifted—you don't need any of your own funds for the down payment (though you'll need reserves for closing costs and a few months' payments). FHA also allows 100% gift funds for the 3.5% down payment. You'll need a gift letter from the donor stating it's a gift, not a loan. Nevada buyers frequently use gift funds from parents or relatives to get into their first home faster.

Student loans affect both loan types through debt-to-income (DTI) ratios, but the calculation differs. Conventional loans typically use 0.5-1% of your student loan balance as the monthly payment for DTI purposes—even if you're in deferment or on an income-driven plan. FHA uses your actual payment (or 0.5% if deferred). If you're on a low income-driven repayment plan, FHA might give you better DTI treatment. However, conventional's higher DTI tolerance (up to 50% with strong credit vs FHA's 43-57%) can offset this. We analyze both scenarios for Nevada buyers with student debt to find the best option.

Both allow condo purchases, but conventional is far easier. FHA requires the entire condo complex to be FHA-approved—many Las Vegas/Henderson condos aren't on the approved list. Conventional loans are more flexible: the condo just needs to be "warrantable" (meet basic standards like owner-occupancy ratios and budget reserves). If you're buying a condo in Vegas, Henderson, or Reno, check FHA approval status first. If it's not approved, conventional (or even a non-warrantable condo loan) will be your only option. We help buyers navigate condo financing all the time—it's a common issue in Nevada's condo-heavy market.

Minimum is 620, but here's the reality: 680+ gets you significantly better rates and easier approval. 740+ gets you the best rates (often 0.5-0.75% lower than 680). If you're between 620-680, you'll pay more in rate and possibly PMI, but you'll still qualify and save long-term compared to FHA's lifetime insurance. Many Nevada lenders (including us) approve 650-680 scores regularly—especially if you have stable income, low DTI, and clean payment history in the past 24 months. Don't assume you need perfect credit for conventional—we've approved plenty of 660-score buyers in Las Vegas, and they're thrilled they didn't go FHA.

Most Nevada down payment assistance programs (like Nevada Housing Division's Home Is Possible program) work with both FHA and conventional loans. However, you'll get more long-term value pairing assistance with conventional if you qualify. Why? You eliminate FHA's lifetime MIP, saving tens of thousands over the loan term. The assistance typically covers 3-5% of purchase price for down payment/closing costs, and it's available to first-time buyers or those who haven't owned in 3+ years. Income limits apply (around $150,000 for Clark County). We help Nevada first-timers combine down payment assistance with the right loan type—usually conventional if their credit is 680+, FHA if below 640.