There are four real loan types available to first-time home buyers in Las Vegas: FHA, Conventional, VA, and USDA. Each one serves a different kind of buyer, and picking the right one up front can save you $30,000 to $80,000 over the life of the loan. The wrong choice is rarely a disaster, but it usually means you leave money on the table.
Here is a clean comparison of all four, the Clark County-specific rules that apply, and a decision framework for picking the right one for your situation.
FHA loans â the default for most first-time buyers
Federal Housing Administration loans are the most flexible option for buyers with lower credit scores, limited savings, or non-traditional income. The minimum credit score is 580 for the 3.5 percent down payment, and 500 for a 10 percent down payment. Debt-to-income ratio can go up to 56.9 percent with compensating factors, compared to 45 to 50 percent on conventional loans.
The trade-off is mortgage insurance. FHA charges an upfront MIP of 1.75 percent of the loan amount (rolled into the mortgage) and an annual MIP of 0.55 to 0.85 percent, paid monthly. For most loans originated after 2013, the annual MIP stays for the life of the loan unless you refinance. On a $400,000 loan, that is around $200 per month you will pay for 30 years unless you refi into a conventional.
FHA limits in Clark County for 2026 are $766,550 for a single-family home. Above that, you are into jumbo territory. Below that, FHA makes sense for most buyers with credit scores between 580 and 680 who cannot comfortably put 5 percent down.
Conventional loans â better for stronger credit
Conventional loans follow Fannie Mae and Freddie Mac guidelines. Minimum down is 3 percent for first-time buyers using HomeReady (Fannie) or Home Possible (Freddie) programs, or 5 percent on standard conventional. Minimum credit score is 620, though rates improve meaningfully at 680, 720, and 740.
The advantage is mortgage insurance structure. Private mortgage insurance (PMI) on a conventional loan automatically drops off at 78 percent loan-to-value, usually around year 10 to 12 on a typical loan. Some lenders will remove it earlier with an appraisal proving you have 20 percent equity. On a $400,000 loan with 5 percent down, PMI runs $150 to $250 per month and disappears in about 8 to 10 years of normal payments.
If your credit is 700 or higher and you can put 5 percent down, conventional usually beats FHA on total cost. If your credit is below 680 or you are putting less than 5 percent down, FHA is typically the better math.
VA loans â the best deal for eligible veterans
If you served in the military, are currently active duty, or are a surviving spouse of a service member, VA loans are almost always the right choice. Zero down, no mortgage insurance, and typically rates 0.25 to 0.5 percent lower than conventional. There is a one-time funding fee (1.4 to 3.6 percent depending on service history and down payment) that can be rolled into the loan. Service-connected disabled veterans are exempt from the funding fee entirely.
VA loans in Clark County follow the same 2026 loan limit structure as FHA for veterans with full entitlement, there is no actual loan limit. A VA loan can go above $766,550 with no down payment, which is useful in Summerlin and Henderson where prices push into the $700s and $800s.
To qualify you need a Certificate of Eligibility (COE), which your broker can pull directly from the VA portal in about 15 minutes. Most veterans do not need DD-214 paperwork upfront because the VA system verifies service automatically. If you are buying a multi-unit property (duplex, triplex, fourplex) and planning to live in one unit, VA loans cover up to four units with the same zero-down structure.
USDA loans â zero down in specific Nevada areas
USDA Rural Development loans offer zero down payment financing with competitive rates, but the property has to be in a USDA-eligible area. For Las Vegas, that means parts of Pahrump, Moapa Valley, Mesquite, and some outlying census tracts in northwest Clark County. The city of Las Vegas itself and most of Henderson, Summerlin, and North Las Vegas are not USDA-eligible.
Income limits apply. In Clark County for 2026, household income cannot exceed 115 percent of the area median, which is roughly $110,000 for a four-person household. USDA has no credit score minimum from the agency itself, but most lenders require 640. The main ongoing cost is the USDA annual fee of 0.35 percent, which functions like lighter mortgage insurance.
If you are open to buying in Pahrump or Mesquite and commuting, USDA can be the best deal of all four loan types for eligible buyers. Zero down, zero PMI, and a rate comparable to conventional. The constraint is location.
How to actually choose
The decision usually comes down to three variables: your credit score, your down payment, and where you want to buy.
If you served in the military, VA almost always wins. Do not stop reading, but assume VA is your answer.
If your credit is below 680 and you are putting less than 5 percent down, FHA is the default.
If your credit is 700 or higher and you can put 5 percent down, conventional usually wins on long-term cost.
If you want to buy in Pahrump, Mesquite, or northwest Clark County rural areas and your household income is under 115 percent AMI, USDA is the cheapest option available.
If you are borderline between FHA and conventional, the deciding factor is usually how long you plan to stay in the home. Under 7 years, FHA often wins because the lower upfront cost beats the long-term PMI cost. Over 10 years, conventional wins because PMI drops off naturally.
Stacking assistance programs
All four loan types can be combined with Nevada down payment assistance programs. Home Is Possible (HIP) grants work on FHA, VA, and conventional. HOME Plus layers on FHA and conventional. WISH matching grants work on all four. Clark County HOME assistance works on FHA and conventional.
Our full coverage is in the assistance programs guide. The short version: most first-time buyers in Las Vegas qualify for $15,000 to $25,000 in layered assistance on top of their chosen loan type.
Common mistakes in loan type selection
Over a year of working with first-time buyers in Clark County, the same patterns of wrong choices show up repeatedly. Choosing FHA when your credit qualifies for conventional, because FHA feels more familiar. The monthly PMI cost on conventional drops off, FHA MIP stays forever. On a typical 30-year loan in Las Vegas, that difference is often $40,000 to $60,000.
Choosing conventional when your DTI is tight, because you assume FHA is for buyers with bad credit. FHA’s 56.9 percent DTI cap is a real tool that lets you buy more home than conventional allows, even with excellent credit. If you have student loans, a car payment, and a tight budget, FHA can qualify you for a $450,000 home when conventional caps you at $380,000.
Skipping VA because you do not think you qualify. National Guard and Reserves with 6 years of service qualify. Widows and widowers of service members qualify. Many veterans who left the military decades ago never used their benefit and still have full VA entitlement available. If you served in any capacity, always check before picking another loan type.
Choosing a builder’s preferred lender without comparing. Builder incentives look generous in the sales office but the underlying rate is often 0.5 to 1 percent higher than a broker can get. Run the numbers both ways before committing to the builder’s lender. Your agent should support this; if they push back hard, that is a signal.
What to do next
Before committing to a loan type, run the full comparison once. A broker can pull your credit (soft inquiry, no score impact), confirm which loan types you qualify for, and model total cost over 5, 10, and 30 years for each option. The difference between FHA and conventional on a typical Las Vegas home is usually $20,000 to $50,000 over the life of the loan. That is real money worth a 20-minute conversation.
Call Millennium Mortgage Group at (702) 946-1413 or start at mmtggroup.com.