Loan Program Comparison

VA vs FHA vs Conventional Loans: Nevada Comparison Guide

Complete side-by-side comparison of the three major loan programs for Nevada homebuyers. Discover which mortgage type offers the best benefits for your situation, credit profile, and homeownership goals.

Written by

Michael Torres, Senior Loan Advisor

Updated January 2025
12 min read

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At-a-Glance Comparison

Feature VA Loan FHA Loan Conventional
Minimum Down Payment 0% 3.5% 3-5%
Minimum Credit Score 580-620 580 620-640
Mortgage Insurance None (PMI) Required (MIP) Required if <20% down
VA Funding Fee / Upfront MIP 1.25-3.3% (can be financed) 1.75% upfront MIP None
Max DTI Ratio 41% (flexible) 43-50% 43-45%
Nevada Loan Limits (2025) $766,550+ $498,257 $766,550
Best For Veterans & Military First-time buyers Strong credit buyers
Seller Concessions Up to 4% Up to 6% Up to 3%

VA Loan Winner

Best overall benefits: $0 down, no PMI, competitive rates. Only available to veterans and active military. Potential savings of $100,000+ over conventional loans.

FHA Great for First-Timers

Low 3.5% down payment, credit score as low as 580, flexible qualification. Perfect for Nevada first-time buyers with limited savings or lower credit scores.

Conventional Best Long-Term

PMI can be removed once you reach 20% equity. Lower rates for excellent credit. Best for buyers with strong credit (700+) and larger down payments.

In-Depth Program Comparison

VA Loans

For Veterans & Active Military

Advantages

  • 0% down payment required – Save tens of thousands on Nevada homes
  • No PMI ever – Save $150-300/month compared to conventional
  • Competitive interest rates – Often 0.25-0.5% lower than conventional
  • Flexible credit requirements – Can approve 580+ credit scores
  • Seller can pay up to 4% toward closing costs

Disadvantages

  • Military service required – Only for veterans, active duty, reserves, National Guard
  • VA funding fee – 1.25-3.3% upfront (waived for disabled vets)
  • Property requirements – VA appraisal has stricter standards
  • Primary residence only – Cannot use for investment properties

💡 Best For:

Nevada veterans, active military at Nellis AFB, National Guard/Reserve members with 6+ years of service, and eligible surviving spouses. If you qualify for a VA loan, it's almost always your best option due to the zero down payment and no PMI benefits.

Learn More About VA Loan Requirements

FHA Loans

For First-Time & Low-Down-Payment Buyers

Advantages

  • Low 3.5% down payment – Only $14,000 down on $400k Las Vegas home
  • Credit score as low as 580 – Most flexible credit requirements
  • High DTI ratios allowed – Up to 50% with compensating factors
  • Gift funds accepted – Family can gift entire down payment
  • Available to everyone – No military service requirement
  • Seller can pay up to 6% toward closing costs

Disadvantages

  • Mortgage insurance required – Upfront 1.75% MIP + monthly premium
  • MIP for life if <10% down – Cannot remove without refinancing
  • Lower loan limits – Max $498,257 in most Nevada counties
  • Property requirements – FHA appraisal has specific standards

💡 Best For:

Nevada first-time homebuyers with limited savings, buyers with credit scores 580-680, those who can't afford 20% down, and anyone who needs flexible qualification. Ideal for Las Vegas and Reno buyers purchasing homes under $450,000.

Learn More About FHA Loan Requirements

Conventional Loans

For Strong Credit & Established Buyers

Advantages

  • PMI can be removed – Once you reach 20% equity, no more insurance
  • Lower rates for excellent credit – 740+ scores get best pricing
  • Higher loan limits – Up to $766,550 in Nevada (2025)
  • Investment properties allowed – Can use for rentals and second homes
  • Fewer property restrictions – More flexible than FHA/VA appraisals
  • Jumbo loan options – Can finance luxury Nevada homes above limits

Disadvantages

  • Higher credit score required – Typically need 620-640 minimum
  • PMI required if <20% down – Adds $150-300/month to payment
  • Larger down payment needed – 5-20% typical (3% programs limited)
  • Lower DTI limits – Usually maxes out at 43-45%
  • Lower seller concessions – Only up to 3% toward closing costs

💡 Best For:

Nevada buyers with excellent credit (700+), those who can put 10-20% down, repeat homebuyers with equity from a previous sale, high-income professionals, and anyone purchasing investment properties or second homes in Nevada.

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