VA Loans vs Conventional Loans: Nevada Comparison Guide

Yes, absolutely! You can have a VA loan on one property and a conventional loan on another simultaneously. For example, many Nevada veterans use their VA loan for their primary residence in Las Vegas, then later buy a vacation home in Tahoe or an investment property using conventional financing. The VA loan must always be for your primary residence, but there's no restriction on having other types of loans on other properties.

Generally no. Refinancing from a VA loan to conventional rarely makes financial sense because you'd be giving up VA loan benefits (no PMI, lower rates) and taking on PMI unless you have 20% equity. However, you might consider it if: (1) you want to free up your VA entitlement to buy another home with VA financing, (2) you have 20%+ equity and can get a significantly better rate on conventional, or (3) you're converting to a rental property and need conventional financing for investment purposes.

Yes, you can switch loan types before closing, though it will likely delay your closing date. If you're a veteran and initially applied for conventional but realize VA is better for your situation, contact your Nevada lender immediately. You'll need to provide your Certificate of Eligibility and the lender will need to re-underwrite as a VA loan. It's best to decide on loan type early in the process, but switching is possible if needed before you sign final documents.

Not significantly. Both VA and conventional loans typically close in 30-45 days in Nevada. VA loans do require a VA appraisal which can add a few days compared to conventional appraisals, but experienced VA lenders can process VA loans just as quickly. The myth that VA loans are "slow" is outdated—with today's streamlined VA processing, closing times are comparable. Work with a lender experienced in VA loans to ensure smooth, timely closings.

VA loans have stricter property requirements due to Minimum Property Requirements (MPRs) designed to protect veterans. The VA appraiser checks for safety issues like peeling paint, faulty electrical, roof damage, and water/pest damage. Conventional appraisals focus mainly on value. However, in Nevada's newer housing stock (especially Las Vegas and Henderson suburbs), most homes easily pass VA requirements. Older homes or fixer-uppers may face challenges with VA appraisals and might be better suited for conventional financing or FHA 203k loans.

If you're the veteran or active-duty service member, your spouse can be a co-borrower on your VA loan even if they're not military. However, if only your spouse served and you did not, you cannot use their VA benefit (with one exception: surviving spouses of veterans who died in service or from service-connected disabilities may qualify for VA loan benefits). In most cases, the veteran must be on the loan to use the VA benefit, but non-veteran spouses can co-borrow to combine income for qualification.

Yes, typically VA loan rates are 0.25% to 0.50% lower than conventional loan rates for comparable borrowers. This is because VA loans are backed by the Department of Veterans Affairs, reducing lender risk. For example, if conventional 30-year fixed rates in Nevada are at 6.75%, VA rates might be 6.25%-6.50%. Over a 30-year $350,000 loan, even a 0.25% rate difference saves you approximately $20,000 in interest. Check current Nevada VA rates with our lenders to see today's advantage.

Absolutely. The VA funding fee (2.15% for first-time use with 0% down, or 1.25%-1.5% with 5-10% down) can be financed into your loan, so you don't pay it out of pocket. While conventional loans don't have a funding fee, they require PMI if you put down less than 20%, which costs $50-200+ per month until you reach 20% equity. Over just 5-7 years, PMI costs far exceed the one-time VA funding fee. Plus, disabled veterans (10%+ VA rating) have the funding fee completely waived, making VA loans even more advantageous. For a $350,000 loan, you'd pay ~$7,525 funding fee (financed) vs. ~$14,700 in PMI over 7 years with conventional.