Everything Nevada homebuyers need to know about FHA, VA, conventional loans, rates, approval, and the mortgage process. Clear, honest answers from licensed mortgage professionals.
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As of early 2025, Nevada mortgage rates average:
Rates vary by credit score, down payment, loan amount. Expect rates to decline to 6.25-6.75% range by end of 2025 as Fed cuts. View current Nevada rates.
Nevada closing costs average 2-5% of loan amount:
Nevada-specific: No state mortgage tax (unlike some states). Clark County transfer tax $1.95/$500. Las Vegas/Henderson higher than rural areas.
FHA/VA allow seller to pay up to 6% toward closing costs (negotiable). Complete Nevada closing costs breakdown.
Interest Rate: The rate you pay on the loan principal. Determines your monthly payment. Example: 7% interest rate.
APR (Annual Percentage Rate): Interest rate PLUS fees (origination, points, mortgage insurance, etc.) expressed as yearly rate. Always higher than interest rate. Example: 7.2% APR.
APR shows true cost of loan. Compare APRs between lenders, not just rates. Full APR vs rate explanation.
Mortgage points (discount points): Pay 1% of loan upfront to reduce rate by ~0.25%. Example: $4,000 to lower rate 7.0% → 6.75% on $400K loan.
Makes sense if: You'll stay in home 5+ years (break-even point typically 3-5 years), have extra cash for closing, won't refinance soon
Don't pay points if: You plan to refinance when rates drop (2025-2026), limited cash for closing, may move within 3 years
In current Nevada market (rates expected to drop), most buyers skip points and plan to refinance in 12-24 months. Calculate if points are worth it.
PMI (Private Mortgage Insurance): Required on conventional loans with less than 20% down. Costs 0.5-1.5% of loan annually ($2,000-6,000/year on $400K loan).
How to avoid PMI:
PMI cancels automatically at 78% LTV (22% equity). Calculate your PMI costs.
Nevada market status 2025: Balanced, favoring buyers more than 2021-2023 but still competitive.
Good for buyers who:
Buy if: You'll stay 3+ years, rents are $1,800+/month, have down payment saved, income is stable
Math: Las Vegas rent $2,000/month = $24,000/year thrown away. Mortgage on $400K home with FHA = ~$2,800/month but building $1,200/month equity + appreciation.
Break-even typically 3-4 years in Nevada (buying costs amortized). After that, owning saves $10K-20K/year vs renting.
Rent if: You may move within 2 years, job instability, saving for larger down payment, credit needs repair
Nevada Housing Division programs:
Local programs:
Income limits: typically $100K-120K for Clark County, higher for Washoe. Complete Nevada DPA guide.
Not legally required, but HIGHLY recommended in Nevada, especially Las Vegas and Reno markets.
Why use an agent:
Exception: Buying FSBO (for-sale-by-owner) directly from seller without agents on either side.
We can connect you with trusted Nevada buyer's agents at no cost. Get agent referral.
Buy now. Here's why:
"Marry the house, date the rate": Buy at today's 7% rate, refinance to 6% in 2026 when rates drop. Best of both worlds.
Math of waiting:
What happens when rates drop: Buyer demand surges, inventory tightens further, prices spike 5-8%, bidding wars return. You're competing with EVERYONE who was waiting.
Buy now in less competition, refinance when rates drop, lock in today's prices before they rise. Get pre-approved now.
Our Nevada mortgage experts are standing by to answer your specific questions and help you get pre-approved in 24 hours.
Licensed in Nevada | NMLS #123456 | Equal Housing Lender
Nevada home purchase timeline: 30-45 days from offer acceptance to closing.
Las Vegas Metro area closings average 38 days. Delays happen with appraisal issues, title problems, or incomplete documentation. View complete FHA timeline.
Standard mortgage documentation:
Self-employed need 2 years business tax returns, P&L statements, CPA letter. Complete document checklist.
DTI (Debt-to-Income Ratio): Your monthly debt payments divided by gross monthly income.
Formula: (Mortgage + car + credit cards + student loans + other debt) ÷ gross income
Maximum DTI limits by loan type:
Example: $6,000 income, $2,400 debts = 40% DTI (acceptable). Lower DTI = better approval odds and rates. Calculate your DTI.
Yes! Student loans don't disqualify you. Lenders include student loan payment in DTI calculation:
Strategies to qualify with student loans:
Yes, but waiting periods apply:
Chapter 7 Bankruptcy waiting periods:
Chapter 13 Bankruptcy:
Must rebuild credit during waiting period (580+ score for FHA). Complete bankruptcy mortgage guide.
Down payment requirements in Nevada vary by loan type:
Most Nevada first-time buyers use FHA (3.5% down) or conventional 3% down programs. Veterans should use VA benefits for $0 down. Nevada down payment assistance programs can help cover costs.
Minimum credit scores by loan type:
Average approved Nevada buyer has 682 credit score. FHA loans are most forgiving for credit scores 580-680. Learn how to qualify with lower credit.
Use the 28/36 rule: housing shouldn't exceed 28% of gross income, total debts shouldn't exceed 36%. Quick examples for Nevada:
These assume minimal debt, 7% interest rate, $0-15K down (FHA/VA). Use our affordability calculator for your exact situation.
Pre-Qualification: Informal estimate based on self-reported info. Takes 5 minutes, no credit pull, not verified. Weak negotiating power.
Pre-Approval: Full application with credit check, income/asset verification, underwriter review. Takes 24-48 hours. Shows sellers you're a serious, qualified buyer.
In competitive Nevada markets (Las Vegas, Henderson, Reno), pre-approval is REQUIRED to make offers. Learn more about the difference.
Choose FHA if: Credit score 580-680, down payment under 5%, first-time buyer, or tight budget
Choose Conventional if: Credit 700+, 5-20% down payment available, want to avoid lifetime mortgage insurance
FHA has easier approval but includes mortgage insurance for life of loan. Conventional requires better credit but PMI cancels at 78% LTV. Full FHA vs Conventional comparison.