What are the FHA loan requirements in Nevada for 2025?

Nevada FHA loan requirements for 2025 include: 580 minimum credit score for 3.5% down (or 500 credit score with 10% down), maximum 50% debt-to-income ratio, 3.5% minimum down payment, steady employment history (2+ years), primary residence occupancy, property must meet FHA appraisal standards, and loan amount within Nevada county limits ($498,257-$571,950 depending on county).

Can I buy a house in Las Vegas with bad credit using FHA?

Yes, FHA loans in Las Vegas accept credit scores as low as 580 (3.5% down) or 500 (10% down). Many Nevada lenders offer manual underwriting for borrowers with non-traditional credit. If your credit score is below 580, work on improving it for 6-12 months before applying, or consider down payment assistance programs that may help compensate for lower credit.

What is the maximum FHA loan amount in Nevada?

2025 FHA loan limits in Nevada vary by county: Clark County (Las Vegas, Henderson) - $498,257; Washoe County (Reno, Sparks) - $571,950; Carson City - $571,950. Rural Nevada counties range from $498,257 to $571,950. Multi-unit properties have higher limits (2-unit: up to $638,100-$732,050; 3-unit: up to $771,450-$884,700; 4-unit: up to $958,350-$1,099,450).

How much money do I need upfront for an FHA loan in Nevada?

Typical upfront costs for Nevada FHA loans: 3.5% down payment ($14,000 on $400K home), 1.75% upfront MIP ($7,000 on $400K - can be financed), 2-5% closing costs ($8,000-$20,000 - sellers can contribute up to 6%). Total cash needed: $15,000-$25,000 out of pocket, though down payment assistance programs can reduce this significantly. Gift funds from family can cover 100% of down payment.

Debt-to-Income (DTI) Ratio Calculator

Calculate Your DTI Ratio

Your DTI Ratio

Enter your income and debts to calculate your debt-to-income ratio.

DTI Ratio Guidelines

Under 36% - Excellent

Qualifies for all loan types with best rates

36% - 43% - Good

Qualifies for most conventional loans

43% - 50% - Fair

FHA/VA loans possible with strong credit

Over 50% - High

May need to pay down debts before qualifying

Quick Tips

Lower DTI = better loan terms and interest rates
Pay off small debts to quickly improve your DTI
FHA loans are more flexible with higher DTI ratios
Increasing income also lowers your DTI percentage

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Understanding Debt-to-Income Ratio

What Is Debt-to-Income Ratio?

Your debt-to-income (DTI) ratio is the percentage of your gross monthly income that goes toward paying debts. Lenders use DTI to assess your ability to manage monthly mortgage payments alongside your existing debt obligations.

DTI Formula: (Total Monthly Debt Payments ÷ Gross Monthly Income) × 100

Front-End vs Back-End DTI

Front-End DTI (Housing Ratio)

Only includes housing-related expenses: mortgage payment, property taxes, homeowners insurance, and HOA fees.

Ideal: Under 28%

Back-End DTI (Total Debt Ratio)

Includes ALL monthly debt obligations: housing expenses + car loans + credit cards + student loans + personal loans + alimony/child support.

Ideal: Under 36% (conventional) or under 43-50% (FHA/VA)

What Debts Are Included in DTI?

Included Debts

• Credit card minimum payments
• Auto loan payments
• Student loan payments
• Personal loan payments
• Mortgage/rent payments
• Home equity loans
• Alimony/child support
• Other installment loans

NOT Included

• Utilities (electric, gas, water)
• Phone/internet bills
• Groceries
• Insurance (except home/mortgage)
• Subscriptions (Netflix, gym)
• Medical bills (not in collections)
• Transportation costs
• Childcare expenses

DTI Requirements by Loan Type

Loan Type	Max DTI	Notes
FHA Loan	50%	With compensating factors (good credit, reserves)
VA Loan	41%+	No hard limit, but most lenders cap at 50-55%
Conventional	43%	Up to 45% with excellent credit (740+)
USDA Loan	41%	Rural properties only
Jumbo Loan	43%	Stricter requirements, larger reserves needed

How to Improve Your DTI Ratio

Pay Off High-Interest Debt

Focus on eliminating credit card balances and small personal loans first for quick DTI improvement

Increase Your Income

Ask for a raise, start a side hustle, or include bonus/commission income (if consistent for 2+ years)

Avoid New Debt

Don't finance furniture, cars, or large purchases while applying for a mortgage—this increases your DTI

Refinance or Consolidate

Consolidating multiple debts into one lower monthly payment can reduce your DTI percentage

DTI Ratio FAQs

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