Edited and reviewed by CEO Vatche Saatdjian — 30+ years of experience — Expert on FHA & Conventional loans
Most Nevada buyers don't realize they have options. FHA works great if your credit is under 680—but conventional can save you thousands if it's higher. Let's find your best path forward.
72% of Nevada buyers pick a loan without comparing both options. That can cost you $10,000+ over 5 years in unnecessary fees.
Takes ~60 seconds • No credit check • Get personalized recommendation
Here's a clear breakdown of how these two loan types compare across the factors that matter most to Nevada buyers.
| Feature | FHA Loan | Conventional |
|---|---|---|
| Minimum Down Payment | 3.5% | 3% |
| Minimum Credit Score | 580 | 620-640 |
| Maximum DTI Ratio | Up to 50% | Up to 45% |
| Mortgage Insurance |
Upfront + Monthly MIP (life of loan if <10% down) |
Monthly PMI only (cancels at 20% equity) |
| Gift Funds Allowed | 100% of down | Varies |
| Seller Concessions Max | 6% | 3-9% |
| Property Standards | Stricter inspection | More flexible |
| Nevada Loan Limits (2025) |
$498,257 (Clark/Washoe) |
$806,500 (Clark/Washoe) |
Answer 5 quick questions and we'll show you which loan type saves you the most money based on your credit, down payment, and goals.
Takes ~60 seconds • No obligation • NMLS #65506
See actual monthly payments and total costs for both loan types on a $400,000 Las Vegas home purchase—the numbers that matter most to your budget.
Cash to close: ~$22,000 (includes down payment, closing costs, prepaids)
Cash to close: ~$28,000 (includes down payment, closing costs, prepaids)
Bottom line: If you have 680+ credit and can afford $6K more upfront, conventional saves $188/month and thousands long-term. If credit is 580-679 or cash is tight, FHA gets you in with less money down. Both work—choice depends on your situation.
Input your specific credit score, down payment, and price for personalized comparison
REAL NEVADA SCENARIOS
See yourself in these real Las Vegas, Henderson, and Reno homebuyer profiles—discover which loan type fits your exact situation
With 620 credit and limited down payment, FHA's 3.5% down ($14K on $400K home) works perfectly. Conventional would require 5% ($20K) minimum.
High credit (740) qualifies for lowest conventional rates. 10% down ($40K) eliminates PMI entirely—saves $250/mo vs FHA MIP.
595 credit doesn't qualify for conventional (needs 620+), but meets FHA 580 minimum. Gift funds from parents allowed for full down payment.
FHA allows 2-4 unit properties with just 3.5% down ($19,250 on $550K duplex). Rent one unit, live in other—rental income covers mortgage.
Excellent credit (780) + 20% down from equity = NO PMI, lowest rates. Saves $400+/mo vs FHA. Conventional is clearly better for repeat buyers with equity.
Answer 8 quick questions—find out which loan type saves you the most money
FHA loans are ideal for Nevada buyers in these situations
If your credit score is 580-639, FHA is typically your best option in Nevada. Conventional loans require 620+ (often 640+ for best rates), making FHA more accessible.
With only 3.5% down required, FHA helps you buy sooner. On a $400K Las Vegas home, that's $14,000 vs $20,000+ for conventional—saving months of saving.
Family helping with down payment? FHA allows 100% of your 3.5% down to come from gifts. Conventional loans often require you to contribute your own funds.
Student loans or car payments? FHA allows DTI ratios up to 50%+, while conventional caps at 43-45%. More Nevada buyers qualify despite existing debt.
FHA is the #1 choice for first-timers in Las Vegas and Reno—flexible guidelines, lower barriers to entry, and forgiving of limited credit history.
Bankruptcy or foreclosure in your past? FHA allows approval just 2-3 years after (vs 4-7 for conventional), helping you rebuild homeownership faster.
Conventional loans offer advantages for Nevada buyers with stronger credit profiles
With good to excellent credit (680+), conventional loans offer better interest rates than FHA. Over 30 years in Nevada, this can save tens of thousands in interest.
If you can put 10-19% down, conventional PMI costs less than FHA MIP. Plus, PMI cancels automatically at 78% LTV—FHA MIP stays for life (if <10% down).
Buying above $498,257 in Las Vegas or Henderson? FHA maxes out, but conventional goes to $806,500 (or higher with jumbo loans).
FHA requires owner-occupancy. Buying a Nevada rental property or vacation home? You'll need conventional or other financing options.
FHA has strict property standards. If your Nevada home has deferred maintenance or needs updating, conventional loans are more flexible.
With 20% down (or reaching 20% equity), conventional PMI drops off completely. FHA MIP continues for the loan life, costing thousands more over time.
See which loan type saves more money in these common Las Vegas and Reno situations
Situation
Best Choice
FHA Loan - Conventional would require 640+ credit and 5% down ($19,000). FHA's 580 minimum and 3.5% down make homeownership possible now.
Monthly payment: ~$2,480 with FHA MIP
Situation
Best Choice
Conventional Loan - Excellent credit earns lower rate (6.5% vs 6.75% FHA). PMI drops at 78% LTV. Saves ~$180/month vs FHA.
Monthly payment: ~$3,120 (drops to $2,970 when PMI cancels)
Situation
Best Choice
FHA Loan - Gift covers entire 3.5% down ($15,750). FHA's 100% gift acceptance and self-employed flexibility make approval easier.
Monthly payment: ~$3,010 with FHA MIP
Situation
Best Choice
Conventional Loan - 20% down = no PMI/MIP at all. Top-tier credit earns best rate. Saves $250+/month vs FHA with lifelong MIP.
Monthly payment: ~$1,890 (no mortgage insurance!)
We'll analyze your situation and recommend the best loan type for your Nevada home purchase
Understanding the biggest cost difference between FHA and conventional loans
1.75% of loan amount (can be financed into loan)
Example: $400K home = $7,000 upfront MIP
0.55% of loan amount (paid monthly)
Example: $380K loan = $174/month
• 10%+ down: Cancels after 11
years
• <10% down: Life of loan
(never cancels)
30-Year Cost
With 3.5% down, you'll pay MIP for all 30 years = ~$69,700 total (on $380K loan)
None (PMI is monthly only)
No upfront cost to finance
0.30-1.50% based on credit/down payment
Example: $380K loan @ 0.60% = $190/month
•
Auto-cancels at 78% LTV
(typically 8-12 years)
• Request removal at 80% LTV
• Can refi to remove PMI earlier
Total Cost
With 5% down, PMI cancels ~year 10 = ~$22,800 total (on $380K loan)
FHA MIP stays for life with 3.5% down, costing ~$70K over 30 years. Conventional PMI drops off after ~10 years, saving ~$47K long-term.
However, if you can't qualify for conventional now (due to credit/down payment), FHA gets you into homeownership—and you can always refinance to conventional later to remove MIP and secure a lower rate.
Nevada homebuyers' most common questions about FHA vs conventional loans
Still have questions about which loan is right for you?
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NEVADA BUYER FAQ
Nevada homebuyers' most frequently asked questions about choosing between FHA and conventional mortgages—answered by local experts
Stop guessing. Our Nevada loan officers compare both FHA and conventional options for your exact credit score, down payment, and income—showing you which saves more money.
No obligation • Soft credit pull only • NMLS #65506
Work with experienced Nevada lenders who'll compare both options for your situation
Use our mortgage calculator to estimate payments with both FHA and conventional scenarios
Try calculatorsApply once and get pre-approved for both FHA and conventional—then choose the best option
Start applicationExplore detailed guides about FHA loans, conventional loans, and Nevada homebuying
Browse resourcesOur Nevada loan officers will analyze your situation and show you side-by-side comparisons of FHA vs conventional—helping you make the smartest decision
Licensed Nevada lender • NMLS #65506 • Serving Las Vegas, Reno & all Nevada
Choosing between an FHA and conventional loan can save you thousands. Compare requirements, down payments, rates, and find the best mortgage option for your Nevada home purchase.
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Expert Guidance
Understanding the key differences helps you make an informed decision that saves money and gets you into your Nevada home faster.
Government-backed mortgage ideal for first-time buyers and those with lower credit scores or smaller down payments.
Down Payment:
As low as 3.5% with 580+ credit
Credit Score:
Minimum 500-580 accepted
DTI Ratio:
Up to 50% with compensating factors
Mortgage Insurance:
Required for life of loan (under 10% down)
Gift Funds:
100% of down payment can be gifted
Best For:
Traditional mortgage not backed by government, offering flexibility and potentially lower costs for qualified borrowers.
Down Payment:
As low as 3% for first-time buyers
Credit Score:
Typically 620+ required (best rates 740+)
DTI Ratio:
Usually max 45% (sometimes 50%)
Mortgage Insurance:
Removable at 20% equity (80% LTV)
Gift Funds:
Allowed with restrictions (some reserves required)
Best For:
Not sure which loan is right for you?
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See how FHA and conventional loans stack up across the factors that matter most to Nevada homebuyers.
FHA Loan
Conventional Loan
Nevada Insight: Both loan types allow down payment assistance from Nevada Housing Division programs. FHA may be easier to stack with DPA.
FHA Loan
Conventional Loan
Winner: FHA for credit scores below 680. Conventional for 740+ credit scores (better rates offset benefits).
FHA Loan (MIP)
Conventional Loan (PMI)
Winner: Conventional offers lower PMI costs and removal option. FHA MIP is permanent unless you refinance.
FHA Loan
Conventional Loan
Note: Lower base rate doesn't always mean lower total cost. Factor in MIP vs PMI when comparing.
FHA Loan
Conventional Loan
Winner: Conventional for non-standard properties or homes needing cosmetic work. FHA great for move-in ready Nevada homes.
Get personalized rate quotes for both FHA and conventional loans based on your actual credit and financial situation.
See My Rate OptionsSee the actual difference in monthly payments and total costs between FHA and conventional loans on a typical Nevada home.
Home Price
$400,000
Credit Score
660
Interest Rate
7.00%
Loan Term
30 Years
3.5% down payment
Monthly Payment Breakdown:
5% down payment
Monthly Payment Breakdown:
Lower Upfront Costs with FHA
FHA requires $6,000 less cash at closing ($22k vs $28k)
Similar Monthly Payments Initially
Only $76/month difference ($3,299 FHA vs $3,223 Conv)
PMI Drops, MIP Doesn't
After 7 years, conventional payment drops to $2,985/mo (no PMI)
Long-Term Savings with Conventional
$17,844 less interest paid over 30 years
FHA for Short-Term Ownership
If keeping home <5 years, FHA's lower upfront cost wins
Consider Refinancing Later
Start with FHA, refi to conventional when equity/credit improves
Use our mortgage calculator to compare FHA vs conventional based on your specific home price, credit score, and down payment.