Complete Loan Comparison

VA vs FHA vs Conventional Loans in Nevada

Complete side-by-side comparison to help Nevada homebuyers choose the perfect loan program for their situation

Quick Comparison At-A-Glance

Key differences between the three most popular Nevada mortgage programs

Feature VA Loan FHA Loan Conventional
Minimum Down Payment 0% 3.5% 3-5%
Minimum Credit Score 580+ (typically) 580 620
Mortgage Insurance None Required (MIP) If <20% down (PMI)
Eligibility Veterans/Military Anyone Anyone
Nevada Loan Limit (2025) $726,200 $498,257 $766,550
Funding/Upfront Fee 2.15-3.30% 1.75% None
Property Requirements Stricter Stricter Standard
Best For Veterans/Military First-time buyers Higher credit scores

VA Loans

Government-backed loans exclusively for veterans, active military, and eligible spouses with unbeatable benefits.

$0 down payment required
No PMI ever required
Lower rates than conventional
Flexible credit requirements
Reusable benefit

Note: VA funding fee of 2.15-3.30% applies (waived for disabled veterans)

Learn More About VA Loans

FHA Loans

Government-insured loans perfect for first-time buyers with lower credit scores and smaller down payments.

3.5% down minimum
580 credit score accepted
Gift funds allowed
Higher DTI flexibility
Anyone can apply

Note: Requires MIP (mortgage insurance premium) for life of loan if <10% down

Learn More About FHA Loans

Conventional Loans

Private loans not backed by government, ideal for buyers with good credit and stable income.

3-5% down options
PMI removal at 20% equity
Higher limits available
Investment properties OK
Lower rates with 20%+ down

Note: Requires 620+ credit score and may need PMI with <20% down

Learn More About Conventional

Which Loan Type Should You Choose?

Choose VA If:

  • You're a veteran or active military
  • You have limited down payment funds
  • You want the absolute lowest costs

Choose FHA If:

  • Your credit score is below 620
  • You're a first-time buyer
  • You have 3.5% saved for down payment

Choose Conventional If:

  • Your credit score is 620+
  • You can put 10-20% down
  • You want to avoid upfront fees

Real-World Nevada Scenarios

Scenario 1: USAF Veteran in Las Vegas

Profile: Air Force veteran, 640 credit score, $60K income, $5,000 saved, buying $400K home

VA Loan ✓ Best Choice
  • Down: $0
  • Funding Fee: $8,600
  • Monthly: ~$2,850
  • Total Cash: $5,000
FHA Loan
  • Down: $14,000
  • Upfront MIP: $7,000
  • Monthly: ~$2,950
  • Total Cash: $21,000+
Conventional
  • Down: $20,000
  • PMI: ~$200/mo
  • Monthly: ~$2,900
  • Total Cash: $25,000+

Why VA Wins: Zero down payment means veteran can buy with just closing costs. No PMI saves $200+/month. Lower rate than FHA/conventional for this credit profile.

Scenario 2: First-Time Buyer in Henderson

Profile: Teacher, 595 credit score, $55K income, $15,000 saved, buying $350K home

VA Loan
  • Status: Not eligible
  • Reason: No military service
  • N/A
FHA Loan ✓ Best Choice
  • Down: $12,250
  • Upfront MIP: $6,125
  • Monthly: ~$2,550
  • Total Cash: $18,375
Conventional
  • Status: Likely denied
  • Reason: Credit under 620
  • Not approved

Why FHA Wins: Only option that accepts 595 credit score. 3.5% down is affordable with $15K saved. Gift funds from family can help with closing costs. Higher DTI limits accommodate teacher salary.

Scenario 3: Move-Up Buyer in Reno

Profile: Software engineer, 740 credit, $120K income, $80,000 saved, buying $550K home

VA Loan
  • Status: Not eligible
  • Reason: No military service
  • N/A
FHA Loan
  • Status: Over limit
  • Reason: $550K exceeds $498K limit
  • Not available
Conventional ✓ Best Choice
  • Down: $55,000 (10%)
  • PMI: ~$220/mo
  • Monthly: ~$3,400
  • Total Cash: $60,000

Why Conventional Wins: Excellent credit gets best rates. Home price exceeds FHA limits. Can put 10% down and remove PMI later at 20% equity. Higher conforming limit of $766K accommodates Reno pricing.

Scenario 4: Veteran Buying Multi-Unit in Clark County

Profile: Navy veteran, 680 credit, $85K income, $30,000 saved, buying $600K 4-plex

VA Loan ✓ Best Choice
  • Down: $0
  • Funding Fee: $12,900
  • Monthly: ~$4,200
  • Rental Income: -$2,500
FHA Loan
  • Status: Over limit
  • 4-unit limit: $960K (OK)
  • Monthly: ~$4,500
  • Down needed: $21,000
Conventional
  • Down: $120,000 (20%)
  • Investment: Higher rate
  • Monthly: ~$3,900
  • Total Cash: $125,000+

Why VA Wins: VA allows 4-unit purchase with 0% down if veteran occupies one unit. Rental income from other 3 units covers most of mortgage payment. Creates immediate cash flow while building equity. No other loan allows this with zero down.

Not sure which loan is right for your Nevada situation?

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Detailed Feature Comparison

Down Payment & Closing Costs

VA Loans

No down payment required. Seller can pay up to 4% in closing cost concessions. Typical cash needed: $3,000-$8,000 for inspections, appraisal, title.

Nevada Advantage: Can buy in Las Vegas with as little as $5K total cash

FHA Loans

3.5% down minimum. Gift funds from family allowed for entire down payment. Seller can contribute up to 6% toward closing costs.

Nevada Advantage: Down payment assistance programs in Clark/Washoe counties

Conventional

3% down for first-time buyers, 5% for repeat. 10-15% down eliminates or reduces PMI significantly. Gift funds allowed but donor must be related.

Nevada Advantage: Higher limits support Reno/Tahoe higher-cost areas

Credit Score Requirements

VA Loans

No VA-mandated minimum, but lenders typically require 580-620. More flexible with compensating factors like residual income, low DTI, or substantial assets.

  • 580-619: Approved with conditions
  • 620+: Standard approval
  • 640+: Best rates available

FHA Loans

Official minimum 500, but most lenders require 580 for 3.5% down. 500-579 requires 10% down. Manual underwriting available for thin/no credit files.

  • 500-579: 10% down required
  • 580+: 3.5% down allowed
  • No score: Manual underwrite possible

Conventional

Minimum 620 for most programs. Higher scores get significantly better rates and lower/no PMI. 740+ achieves best pricing with lowest PMI costs.

  • 620-679: Higher PMI/rates
  • 680-739: Good pricing
  • 740+: Best rates/PMI

Debt-to-Income (DTI) Limits

VA Loans

No hard DTI cap. Uses residual income requirement instead. Typically approve up to 50-55% DTI with sufficient residual income remaining for living expenses.

Nevada Residual Income: Family of 4 needs ~$1,117/month remaining after debts

FHA Loans

Standard limit 43% back-end DTI, but can go to 50% with compensating factors like high credit score, significant reserves, or minimal payment shock.

Example: $60K income = max $2,150/mo total debts at 43%

Conventional

Typically 45-50% max DTI depending on credit score and down payment. Lower DTI gets better pricing. 36% or below achieves best rate adjustments.

Best Pricing: Keep DTI under 36% for lowest rates and PMI

Property Type & Condition

VA Loans

Must meet VA Minimum Property Requirements (MPRs). Stricter than conventional on safety/soundness. Primary residence only. Up to 4-units allowed if veteran occupies one.

  • ✓ Single-family homes
  • ✓ Condos (VA-approved)
  • ✓ Multi-family (2-4 units)
  • ✗ Investment properties
  • ✗ Fixer-uppers usually

FHA Loans

Must meet FHA property standards. Slightly more lenient than VA. Primary residence required. 203(k) rehab loans available for fixer-uppers. Up to 4-units allowed.

  • ✓ Single-family homes
  • ✓ FHA-approved condos
  • ✓ Multi-family (2-4 units)
  • ✓ Fixer-uppers (203k)
  • ✗ Investment properties

Conventional

Most flexible property standards. Allows investment properties, second homes, vacation homes. Condos easier to approve. Accepts properties in any condition with appropriate financing.

  • ✓ Single-family homes
  • ✓ Any condo (warrantable)
  • ✓ Multi-family (2-4 units)
  • ✓ Investment properties
  • ✓ Second homes/vacation

Loan Approval Timeline

VA Loans

  • COE Obtainment: 2-10 days
  • Pre-Approval: 24-48 hours
  • VA Appraisal: 7-14 days
  • Underwriting: 5-10 days
  • Total Close: 30-45 days

FHA Loans

  • Pre-Approval: 24-48 hours
  • FHA Appraisal: 7-10 days
  • Underwriting: 3-7 days
  • FHA Review: 2-3 days
  • Total Close: 30-45 days

Conventional

  • Pre-Approval: Same day
  • Appraisal: 5-7 days
  • Underwriting: 2-5 days
  • Clear to Close: 3-5 days
  • Total Close: 21-30 days

Frequently Asked Questions

Still Have Questions?

Speak with a Nevada mortgage specialist who can analyze your specific situation and recommend the best loan program