Loan Comparison Guide

VA Loans vs Conventional Loans: Complete Nevada Comparison

Side-by-side analysis showing how Nevada veterans save $80,000+ with VA loans vs conventional mortgages.

VA Loan

  • $0 down payment
  • No PMI required
  • Lower interest rates

Conventional

  • 3-20% down payment
  • No VA eligibility needed
  • Flexible property types
Check VA Eligibility Calculate Savings
Nevada veteran homebuyer comparing VA loan vs conventional loan options with mortgage consultant

Average Savings

$80,000+

Over Loan Life

30 Years

Complete VA vs Conventional Comparison Chart

Detailed side-by-side comparison of every feature that matters for Nevada homebuyers

Feature
VA Loan
Conventional Loan
Down Payment
0%
$0 down required
3-20%
5% typical for first-time
Mortgage Insurance (PMI)
None
Save $100-300/month
Required
If less than 20% down
Credit Score Minimum
580-620
More flexible
620-640
Stricter requirements
Interest Rates
Lower
Typically 0.25-0.5% less
Standard
Market rate
Funding/Origination Fee
2.15%
Can be financed
None
Standard closing costs
Seller Concessions
Up to 4%
Higher limit
Up to 3%
Lower limit
Max DTI Ratio
41-50%
More flexible w/ residual
43-45%
Stricter limits
Property Types Allowed
Primary Only
Must occupy
All Types
Primary, 2nd, investment
Loan Limits (Nevada 2025)
$806,500
Clark/Washoe Counties
$806,500
Same conforming limits
Reusability
Lifetime
Use multiple times
N/A
Standard qualification
Eligibility
Veterans Only
Service requirement
Anyone
No service needed

Quick Summary

  • VA Loans win for total savings: No down payment + no PMI = $50,000+ saved over 5 years
  • VA has upfront funding fee: 2.15% for first use (can be financed into loan)
  • Conventional better for: Investment properties, second homes, luxury properties above VA limits
  • Both have same loan limits in Nevada high-cost areas ($806,500 for Clark/Washoe)

Side-by-Side Loan Comparison

See exactly how VA and conventional loans compare across every important factor

Feature
VA Loan
Conventional
Down Payment
0% $0 required
3-20% $15K-$100K
Mortgage Insurance
NONE Never required
$200-400 If <20% down
Interest Rate
6.00% Lower
6.50% Higher
Credit Score Min
580-620 More flexible
620-640 Stricter
Max DTI Ratio
41-50% With residual
43-45% Strict limit
Property Inspection
VA MPR Health & safety
Standard Value only
Funding Fee
2.15% One-time
0-1% Varies
Seller Concessions
Up to 4% Generous
3-6% Based on down
Assumability
YES Fully assumable
Rarely Not assumable
Max Loan NV
$806K+ Higher limit
$806K Conforming

VA Loan Best For:

  • Veterans, active duty, Guard/Reserves, surviving spouses
  • Limited or no down payment savings
  • Want to avoid PMI costs ($200-400/month)
  • Credit score 580-680 range
  • Planning to live in home as primary residence

Conventional Best For:

  • Non-veterans or veterans using VA benefit elsewhere
  • Have 20%+ down payment saved (no PMI)
  • Buying investment property or vacation home
  • Excellent credit (740+) for best rates
  • Property doesn't meet VA MPR standards

Real Nevada Cost Comparison

See actual monthly payments and total costs for VA vs conventional loans on Nevada homes

$450K Las Vegas Home

Metro Median

VA Loan

Down Payment $0
Loan Amount $450,000
Interest Rate 6.00%
Funding Fee (2.15%) $9,675
Monthly P&I $2,757
PMI $0
Tax & Insurance $525
Total Monthly $3,282
Cash to Close ~$12,000

Conventional (5% Down)

Down Payment $22,500
Loan Amount $427,500
Interest Rate 6.50%
Origination Fee ~$2,000
Monthly P&I $2,702
PMI (0.8%) $285/mo
Tax & Insurance $525
Total Monthly $3,512
Cash to Close ~$35,000

VA Saves You:

Monthly Payment Difference $230/month
Cash to Close Savings $23,000
10-Year PMI Savings $34,200
Total 10-Year Savings $84,800

$600K Reno Home

Higher Price Point

VA Loan

Down Payment $0
Loan Amount $600,000
Interest Rate 6.00%
Funding Fee (2.15%) $12,900
Monthly P&I $3,676
PMI $0
Tax & Insurance $725
Total Monthly $4,401
Cash to Close ~$16,000

Conventional (10% Down)

Down Payment $60,000
Loan Amount $540,000
Interest Rate 6.50%
Origination Fee ~$2,500
Monthly P&I $3,414
PMI (0.65%) $292/mo
Tax & Insurance $725
Total Monthly $4,431
Cash to Close ~$75,000

VA Saves You:

Monthly Payment Similar +$30/month VA
Cash to Close Savings $59,000
10-Year PMI Savings $35,040
Net 10-Year Savings $90,440

*Even with slightly higher monthly payment due to larger loan amount, VA saves you $59K upfront cash plus $35K PMI over 10 years

See Your Exact Savings

Get a personalized comparison for your Nevada home purchase

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Real Nevada Cost Comparison

See the actual dollar differences between VA and conventional loans on a typical Nevada home purchase

$450,000 Home in Las Vegas

Typical first-time buyer scenario • 30-year fixed rate

Credit Score
680

VA Loan

0% down payment

RECOMMENDED
Home Price $450,000
Down Payment (0%) $0
Loan Amount $450,000
VA Funding Fee (2.15%) $9,675
Interest Rate 6.25%
Monthly P&I $2,830
Mortgage Insurance $0
Total Monthly Payment $2,830
Cash Needed at Closing
~$7,500
Covers inspections, appraisal, other costs

Conventional Loan

5% down payment

Home Price $450,000
Down Payment (5%) $22,500
Loan Amount $427,500
Funding Fee $0
Interest Rate 6.50%
Monthly P&I $2,702
PMI (Monthly) $214
Total Monthly Payment $2,916
Cash Needed at Closing
~$30,000
Down payment + closing costs
VA Loan Saves You:
Over the first 5 years
$52,800
$22,500 less upfront + $5,160/year in PMI savings
$22,500
Saved on Down Payment
(VA vs 5% Conv.)
$1,032/yr
Annual Payment Savings
($86/month less)
$25,800
PMI Costs Avoided
(Over 10 years)

Which Loan Type is Right for You?

Both loan types have advantages. Here's how to decide which is best for your Nevada home purchase.

Choose VA Loan If:

  • You're eligible (veteran, active duty, qualifying spouse)
  • You have limited funds for down payment
  • Your credit score is 580-700 (more flexible)
  • You want to avoid monthly PMI forever
  • You're buying within VA loan limits ($726,200 in most NV counties)
Apply for VA Loan

Choose Conventional If:

  • You're not eligible for a VA loan
  • You have 20%+ down payment (avoid PMI)
  • Your credit score is 740+ (best rates)
  • You're buying above VA loan limits (jumbo loan)
  • You want to avoid the VA funding fee
Apply for Conventional

Not Sure Which is Best?

Our Nevada loan specialists can compare both options for your specific situation

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Common Questions: VA vs Conventional

Answers to the most frequent questions Nevada veterans ask when comparing loan options

Still Have Questions About VA vs Conventional?

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