Loan Comparison · Nevada Guide

FHA vs Conventional Loans Nevada

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.

Find My Best Option Calculate Affordability
3.5%
FHA Min Down
3%
Conv Min Down
580
FHA Min Credit
620
Conv Min Credit
Senior couple working together on financial planning, using documents and a calculator to manage family finances.

Reviewed by CEO Vatche Saatdjian — 30+ years of mortgage experience — Expert on FHA and conventional loan comparison for Nevada homebuyers

Side-by-Side Comparison

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

Not Sure Which Loan Is Right for You?

Our Nevada mortgage experts will analyze your financial situation and recommend the best loan program to save you the most money

Get Personalized Recommendation

When to Choose an FHA Loan in Nevada

FHA 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:

First-Time 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.

Lower Credit Scores

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.

Higher Debt-to-Income

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.

Gift Funds & Grants

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.

FHA Real-World Example

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.

When to Choose a Conventional Loan in Nevada

Conventional loans are not government-backed and typically require stronger financials. Here's when a conventional loan is your best choice in Nevada:

Excellent Credit

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.

Larger Down Payment

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.

Higher Loan Amounts

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.

Investment Properties

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.

Conventional Real-World Example

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.

The True Cost Comparison: Nevada Example

Let's break down the real costs of each loan type on a typical Nevada home purchase to see which saves you more money:

$400,000 Home Purchase in Las Vegas

Comparing total costs over 5 years

FHA Loan (3.5% Down)
Down Payment: $14,000
Loan Amount: $386,000
Interest Rate: 6.5%
Upfront MIP (1.75%): $6,755
Monthly P&I: $2,440
Monthly MIP (0.55%): $177
Total Monthly Payment: $2,617

5-Year Total Cost:

$177,775

(Down payment + upfront MIP + 60 monthly payments)

Conventional Loan (5% Down)
Down Payment: $20,000
Loan Amount: $380,000
Interest Rate: 6.25%
Upfront PMI: $0
Monthly P&I: $2,340
Monthly PMI (0.8%): $253
Total Monthly Payment: $2,593

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

Important Note

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.

Making Your Decision

The right choice between FHA and conventional depends entirely on your unique financial situation. Here's a simple decision framework:

?

Choose FHA if:

  • Your credit score is below 680
  • You have less than 5% saved for down payment
  • Your debt-to-income ratio is over 45%
  • You're a first-time buyer with minimal savings
  • You want to use gift funds or down payment assistance
?

Choose Conventional if:

  • Your credit score is 680 or higher (especially 740+)
  • You can afford at least 5% down (ideally 10-20%)
  • You're buying a home over $498,257 (FHA limit)
  • You want to eliminate mortgage insurance eventually
  • You're purchasing an investment property or second home

Still Not Sure? We'll Help You Decide

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 Now

Explore Our Complete Nevada Mortgage Network

Conventional Home Loans Services operates a family of specialized mortgage and insurance websites to serve every Nevada homebuyer need:

FHA Home Loans
3.5% Down Options

Low down payment FHA mortgages for Nevada first-time buyers with flexible credit

Learn More
VA Home Loans
0% Down for Veterans

Zero down VA mortgages for Nevada military families, veterans, and service members

Learn More
Conventional Loans
You're Here

Conventional mortgages, jumbo loans, and general home financing for Nevada buyers

Current Site
Home Insurance
Protect Your Investment

Nevada homeowners insurance quotes and coverage for desert climate protection

Get Quote

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.