Buying a home in Las Vegas is exciting. However, choosing the right mortgage can feel confusing. Three main loan types dominate the market: FHA, VA, and conventional. Each one serves a different kind of buyer. Your credit score, savings, and military status all play a role in this choice. Let’s break down how each loan works so you can pick the best fit for your budget and goals.
FHA Loans: The Accessible Path for Many Buyers
FHA loans are backed by the federal government. They exist to help people who have lower credit scores or limited cash. Specifically, you can put down as little as 3.5% if your credit score is 580 or higher. Scores between 500 and 579 still qualify, but you will need 10% down. Buyers with scores below 500 generally cannot get FHA financing at all.
One big perk is that FHA loans Las Vegas buyers use often allow gift funds and down payment help. First-time buyers with tight savings find this useful. Additionally, sellers can pay up to 6% of your closing costs, which cuts the cash you need at the table.
There is a tradeoff, though. FHA loans come with mortgage insurance on every loan. If you put less than 10% down, that insurance stays for the life of the loan. Even with 10% or more down, it lasts about 11 years. This ongoing cost can add up over time and raise your monthly payment compared to other options.
Clark County Loan Limits Matter
FHA loan limits change based on your county. According to the U.S. Department of Housing and Urban Development, the 2026 FHA floor for a single-unit home is $541,287. Meanwhile, Nevada limits vary widely by location. Some counties allow less than others. Before you start shopping, check what Clark County allows so you know your price range.
VA Loans: Built for Those Who Served
Veterans, active-duty members, and certain military spouses can access VA loans. These loans stand apart from both FHA and conventional options in several key ways. Notably, VA loans do not charge private mortgage insurance at all. This alone can save hundreds of dollars each month.
Furthermore, most VA loans Las Vegas buyers choose offer zero down payment. That means you can buy a home without saving tens of thousands of dollars first. VA underwriting also tends to be flexible, which helps buyers who might not meet strict conventional guidelines.
Las Vegas has a large military-connected community. Nellis Air Force Base and other nearby posts mean many local buyers qualify for this benefit. If you served, a VA loan is often the strongest option available. Skipping it could mean paying more than you need to each month.
Conventional Loans: Strength in the Long Run
Conventional loans are not backed by a government agency. They typically need stronger credit scores and larger down payments. Most lenders want at least a 620 score, and a 5% to 20% down payment is common.
So why would anyone choose conventional? The answer lies in mortgage insurance. Conventional private mortgage insurance, called PMI, drops off once you reach about 80% loan-to-value. That means once you build enough equity, your monthly cost goes down. Consequently, buyers with good credit often save money over the full life of a conventional loan compared to FHA.
Similarly, conventional loans give you more flexibility with property types and loan amounts. If your credit is solid and you have some savings, this route can be the cheapest long-term choice.
Which Loan Fits Your Stage in Life?
Think of these loan types as tools for different moments. A buyer with a 590 credit score and small savings may benefit most from FHA right now. Someone with strong credit and 10% saved might lean toward conventional. Veterans should almost always explore VA first.
Moreover, your choice today does not have to be permanent. Many buyers start with an FHA loan and refinance into a conventional loan later. As your income grows and equity builds, you can shift to a product with lower long-term costs. Accordingly, the best approach is to match your current situation rather than chase a perfect label.
Monthly Costs Tell the Real Story
Down payment size grabs most of the attention. Nonetheless, monthly costs reveal the true picture. Mortgage insurance duration, interest rates, and property taxes all shape what you pay each month. An FHA loan with lifelong insurance might cost more over 15 years than a conventional loan with PMI that drops off after five. Therefore, always compare monthly totals, not just upfront numbers.
Ready to Find Your Best Loan Option?
Choosing between FHA, VA, and conventional financing does not have to be stressful. The right loan depends on your credit, savings, and goals. Our Las Vegas lending team can walk you through each option and show you real numbers. Call us today at (702) 832-0446 to get started on your path to homeownership.