Renting vs Buying in Nevada: A Cost Breakdown

This is the #1 concern we hear. Here's the reality: Yes, the monthly mortgage payment might be $300-500 more than your current rent. But you're building equity instead of throwing money away.

Think of it this way: If you're paying $1,850/month in rent, that's $22,200/year that disappears forever. If you're paying $2,350/month for a mortgage, that's $28,200/year – but ~$8,000-10,000 of that is going toward equity you'll own. So your "real cost" is only about $18,000-20,000/year (the rest is savings in your home).

Plus tax benefits: You can deduct mortgage interest and property taxes on your federal return, potentially saving $3,000-5,000/year in taxes (depending on income). That brings your effective annual cost down even further.

And remember: Rent increases every year. Your mortgage payment is locked in. In 3-5 years, your mortgage payment might actually be lower than what rent would have climbed to. We can run your specific numbers – get a free analysis here.

True, homeowners are responsible for repairs. The rule of thumb is to budget about 1% of your home's value per year for maintenance (on a $400K home, that's ~$4,000/year or ~$333/month). This covers things like HVAC servicing, plumbing issues, roof repairs, etc.

However, you have control: You choose the contractor, the timing, and the quality of repairs. You're not waiting on a landlord to fix something (or dealing with cheap fixes that break again). Plus, improvements you make increase your home value, not your landlord's.

And here's a secret: Your landlord isn't fixing things "for free." They're building maintenance costs into your rent. You're already paying for it – you just don't see it itemized. When you own, you pay directly, but you also reap the benefit of the asset appreciating.

Also, many things in newer homes (or move-in ready homes) won't need major repairs for years. And home warranties (~$500-700/year) can cover many repair costs if you want extra peace of mind.

No! This is a huge myth. While 20% down avoids PMI on conventional loans, most first-time buyers in Nevada put down much less:

• FHA Loans: Only 3.5% down. On a $400K home, that's $14,000 down payment (plus ~$8,000-12,000 for closing costs, so ~$22,000-26,000 total cash needed).
• VA Loans (for veterans): $0 down! Eligible veterans and service members can buy with zero down payment.
• Conventional Loans: As low as 3% down for qualified buyers.
• Down Payment Assistance: Nevada offers programs that provide grants or loans to cover part of your down payment if you qualify.

So if you have $20,000-30,000 saved (or even less with assistance programs), you might qualify to buy. And you can use gift money from family for part of the down payment on FHA loans.

Don't let the 20% myth keep you renting. Find out what you actually need – it's probably much less than you think.

This is a valid concern – buying is definitely less flexible than month-to-month renting. However, you have options if you need to relocate:

• Sell the home: If you've owned it for at least 2 years, you'll likely have built enough equity to sell and break even or make a profit (after paying realtor commissions and closing costs). Nevada's appreciation has been strong historically.
• Rent it out: If you move, you can keep the home and rent it out as an investment property. Hire a property manager (~10% of rent) to handle it remotely. Your tenant pays your mortgage, and you build equity while living elsewhere.
• Short-term rental (Airbnb): In some Nevada areas (check local laws), you can Airbnb your home when you're not using it, potentially covering the mortgage or more.

Yes, selling a home takes a few months and costs money (typically 6% realtor commission + ~2% other closing costs). But if you're in the home for 2+ years, the equity you've built usually offsets those costs. And you still come out ahead compared to renting (where you walk away with $0).

Bottom line: If there's a strong chance you'll move within 1 year, renting is safer. But if you plan to be in Nevada for 2-3+ years, buying makes sense even if you eventually relocate. The equity you build is portable – you can use it toward your next home wherever you move.

Probably yes! You don't need perfect credit to buy a home in Nevada. Here are the minimum credit score requirements for common loan types:

• FHA Loans: Minimum 580 credit score for 3.5% down. Even 500-579 scores can qualify with 10% down.
• VA Loans: No official minimum (determined by lender), but typically 580-620 is acceptable.
• Conventional Loans: Typically require 620+ credit score.

If your credit is lower than these thresholds, or if you have past issues (bankruptcies, foreclosures, collections), you might need to wait and work on improving your credit first. But many Nevada renters with "okay" credit (600-680 range) successfully get approved for FHA or VA loans.

Our advice: Apply and find out where you stand. Even if you don't qualify today, we can give you a roadmap of exactly what to fix to qualify in 3-6 months. Don't assume you can't – check your eligibility now.