Loan Comparison Guide
If you're a Nevada veteran or active-duty service member eligible for VA benefits, you may be wondering whether a VA loan or conventional loan is the better choice for buying your home. Both have unique advantages, but for most eligible veterans, the VA loan offers unbeatable benefits including $0 down payment, no PMI, and competitive interest rates. This comprehensive comparison breaks down all the key differences to help you choose the best loan for your situation in Las Vegas, Reno, Henderson, and throughout Nevada.
VA: $0 down payment required
Conventional: Minimum 3-5% down for primary
residence
VA: No monthly PMI ever
Conventional: PMI required if less than 20% down
VA: Typically 580+ minimum
Conventional: Usually 620+ minimum for best rates
VA: Typically 0.25-0.50% lower than conventional
Conventional: Market rate based on credit/down
payment
For Nevada veterans and active-duty service members, VA loans offer overwhelming advantages in most scenarios. The combination of zero down payment, no monthly mortgage insurance, and lower interest rates can save you tens of thousands of dollars over the life of your loan compared to a conventional mortgage.
| Feature | VA Loan | Conventional Loan |
|---|---|---|
| Minimum Down Payment | 0% ($0 down) | 3-5% for primary residence |
| Mortgage Insurance | None (one-time funding fee) | PMI required if less than 20% down |
| Minimum Credit Score | Typically 580-620 | Typically 620-640 |
| Interest Rate | Usually 0.25-0.50% lower | Market rate |
| Loan Limits | No limit with full entitlement | $766,550 in Nevada (2025) |
| Eligibility | Veterans, active duty, eligible spouses | Any qualified borrower |
| Property Type | Primary residence, up to 4 units | Primary, second home, investment |
| Closing Costs | Seller can pay up to 4% | Seller can pay up to 3% |
| Appraisal Requirements | VA appraisal (stricter) | Standard appraisal |
| Reusability | Yes, multiple times | N/A |
EXAMPLE SCENARIO
$450,000 home purchase in Las Vegas | 30-year fixed rate | 6.5% interest
Cash savings at closing: $23,000
Monthly payment savings: $142/month
Annual savings: $1,704
5-year savings: $8,520
Total 30-year savings: Over $51,000
This example shows how a VA loan saves Nevada veterans both upfront cash and monthly payments. Even with the VA funding fee, the elimination of PMI and 0% down requirement provides substantial savings over the life of the loan. Your actual savings will vary based on credit score, interest rates, and specific loan terms.
If you're eligible for a VA loan, it's almost always the best choice for purchasing a primary residence in Las Vegas, Henderson, Reno, or anywhere in Nevada. Let our VA loan specialists help you maximize your benefits and find the perfect home.