Don't let misconceptions stop you from buying your first home in Nevada. Discover the truth about FHA loans and see how accessible homeownership really is.
"We thought FHA was only for people with bad credit. Wrong! We qualified with 680 scores and 3.5% down."
These widespread misconceptions prevent thousands of qualified Nevada buyers from pursuing FHA financing. Let's set the record straight.
"FHA loans are only for people with bad credit"
This is the most damaging myth. Many qualified buyers with good credit avoid FHA because they think it's a "subprime" program.
FHA is designed for ANYONE who wants low down payment options, regardless of credit quality
Why Good-Credit Buyers Choose FHA:
Nevada Example: A Las Vegas couple with 720 credit scores chose FHA over conventional because they could keep $20,000 in savings as an emergency fund instead of using it all for a down payment.
"You must be a first-time homebuyer to use FHA"
Many repeat buyers mistakenly believe they're no longer eligible for FHA loans after purchasing their first home.
FHA has NO first-time buyer requirement
You can use FHA loans:
Real Nevada Scenario: Henderson homeowner sold their first home after 5 years, used FHA again with 3.5% down to upgrade to a larger property in Summerlin.
"Sellers won't accept FHA offers"
This myth causes buyers to abandon FHA before even trying, fearing their offers will be rejected.
FHA offers are accepted daily in Nevada, especially in Las Vegas and Reno
What Makes FHA Offers Competitive:
Pro Tip: Work with an experienced Nevada FHA lender who can educate listing agents and provide strong pre-approval letters.
"FHA mortgage insurance is permanent and expensive"
Many buyers avoid FHA after hearing about lifetime mortgage insurance premiums.
You can remove FHA mortgage insurance (MIP) by refinancing once you reach 20% equity
Nevada Reality Check:
Las Vegas home prices appreciate 4-6% annually. A $400K home with 3.5% FHA down payment could reach 20% equity in just 3-4 years through appreciation alone, even without extra principal payments.
Smart Strategy: Start with FHA to get into homeownership sooner, build equity, refinance to conventional when you hit 20% equity, and eliminate mortgage insurance permanently.
"FHA loans are only for low-income borrowers"
This income-based misconception stops mid-to-high earners from considering FHA.
FHA has NO income limits – you can earn $500K and still use FHA
The only requirement is that you can afford the monthly payment based on your debt-to-income ratio.
Example: A Henderson tech worker earning $140K chose FHA to buy a $550K home with just $19,250 down (3.5%), preserving $50K for stock investments and emergency savings.
Don't let myths hold you back from homeownership in Nevada. Get a real answer in 5 minutes.
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Quick myth-busting for common FHA questions Nevada buyers ask
Many believe FHA only finances fixer-uppers or properties in poor neighborhoods.
TRUTH:
FHA can finance any home that meets basic safety/structural standards. You can buy brand-new construction, luxury condos, or any home on the MLS with FHA.
Buyers think FHA loans take 60-90 days while conventional closes in 30.
TRUTH:
FHA loans typically close in 30-45 days, the same as conventional. With a good lender, FHA can close in as little as 21 days in Nevada.
Some believe FHA rates are significantly higher than conventional.
TRUTH:
FHA rates are often LOWER than conventional rates. FHA is backed by the government, allowing lenders to offer competitive rates even to buyers with lower credit scores.
Buyers think they must save 3.5% from their own paychecks.
TRUTH:
100% of your FHA down payment can be a gift from family, employer, nonprofit, or down payment assistance program. You can literally buy with $0 of your own funds.
Buyers believe FHA only works for single-family homes.
TRUTH:
FHA finances condos, townhomes, 2-4 unit properties, and manufactured homes. The condo building just needs FHA approval (thousands in Nevada are approved).
College grads with student debt think they can't get FHA loans.
TRUTH:
FHA allows flexible student loan calculations. Even with $50K+ in student debt, you can qualify if your income supports the DTI ratio. Learn more →
Freelancers and business owners think FHA requires W-2 employment.
TRUTH:
FHA welcomes self-employed borrowers! You'll need 2 years of tax returns showing stable or increasing income. Many Nevada gig workers, contractors, and small business owners successfully use FHA.
Buyers with past financial hardships think they're permanently disqualified.
TRUTH:
FHA allows approval after 2 years from Chapter 7 bankruptcy discharge or 1 year into Chapter 13 repayment plan (with court approval). Foreclosure requires 3 years wait.
Buyers fear FHA closing costs are 2-3x higher than conventional.
TRUTH:
FHA closing costs are nearly identical to conventional (typically 2-5% of loan amount). Plus, sellers can contribute up to 6% toward your closing costs (vs 3% on conventional).
Let's set the record straight about what FHA loans really represent and who they're designed to help.
FHA doesn't lend money. Private lenders (like us) make the loans, and FHA insurance protects lenders if borrowers default. This allows lenders to offer more flexible terms.
Created in 1934 to help Americans achieve homeownership after the Great Depression. Today, it helps anyone who wants low down payment options, regardless of income or background.
Over 8 million active FHA mortgages in the U.S. FHA helped 1.2+ million families buy homes in 2024 alone. It's one of the most successful homeownership programs in American history.
Doctors, engineers, teachers, and executives use FHA to preserve cash reserves or maximize purchasing power. It's a strategic financial tool, not a "last resort."
Often lower than conventional loans due to government backing
More lenient credit and DTI requirements than conventional
Just 3.5% down means faster path to homeownership
Real answers to common FHA questions from Nevada first-time buyers
No, FHA is actually easier to get approved for than conventional loans. FHA accepts:
FHA was specifically designed to be more accessible than conventional financing.
You cannot use FHA to buy pure investment property, BUT you can use FHA for house hacking:
This is one of the best real estate investment strategies available. Learn more about FHA house hacking →
This is a myth. In Nevada's current market:
Keys to strong FHA offers: Get pre-approved from an experienced Nevada FHA lender, offer competitive terms, and have your loan officer educate the listing agent if needed. A strong pre-approval letter from a reputable lender makes all the difference.
FHA mortgage insurance (MIP) stays for the life of the loan, BUT you can remove it by refinancing:
Strategy:
Nevada timeline: With typical 4-6% annual appreciation in Las Vegas, many homeowners reach 20% equity in 3-5 years and refinance to eliminate mortgage insurance.
Absolutely not! FHA is specifically designed for borrowers with less-than-perfect credit:
Nevada reality: We regularly approve FHA loans for borrowers with 580-640 credit scores. If you've been told "no" by other lenders, we often find a way to make it work. Learn how to qualify with 580 credit →
Yes! FHA welcomes self-employed borrowers. Requirements:
Nevada has a thriving gig economy and entrepreneurial community. We work with rideshare drivers, freelancers, real estate agents, contractors, and small business owners every day. Your income is averaged over 2 years, and we look at net profit after business expenses.
No. This is one of the biggest myths about FHA loans. There is NO first-time buyer requirement.
You can use FHA:
In fact, about 25% of FHA borrowers in Nevada are repeat buyers who choose FHA for its low down payment and competitive rates.
Our Nevada FHA experts have helped thousands of first-time buyers. Let's answer your specific questions.
Talk to an FHA Specialist