Detailed side-by-side analysis of VA and FHA loans for Nevada homebuyers. Discover which government-backed loan program offers better rates, lower costs, and fits your situation.
| Feature | VA Loan | FHA Loan |
|---|---|---|
| Minimum Down Payment | 0% (None required) | 3.5% with 580+ credit |
| Mortgage Insurance (PMI/MIP) | None | Required for life (0.55% annual) |
| Upfront Fee | 2.15% funding fee (can finance) | 1.75% MIP upfront (can finance) |
| Minimum Credit Score | 580-600 (lender dependent) | 580 for 3.5% down |
| Typical Interest Rate | 0.25-0.5% lower | Competitive market rates |
| Property Type | 1-4 units, primary residence | 1-4 units, primary residence |
| Loan Limits (Nevada 2025) | No limit with full entitlement |
$498,257 (Clark/Washoe) $472,030 (other counties) |
| Eligibility | Veterans & military only | Any US citizen/resident |
| Seller Concessions | Up to 4% | Up to 6% |
| Best For | Veterans seeking zero down | First-time buyers, low credit |
Purchase any home with $0 down - save tens of thousands upfront
Save $200-300/month vs FHA MIP - $90,000+ over loan life
Typically 0.25-0.5% lower than FHA, saving thousands annually
Veterans with full entitlement can buy any price home
Use VA benefits multiple times throughout your life
Total Savings Example (Nevada):
$450K home: $0 down vs $15,750 (FHA 3.5%)
Monthly:
$0 PMI vs ~$206 MIP
30-year savings: ~$90,000+
No military service required - any US citizen qualifies
Only 3.5% down vs 5-20% conventional requirement
Accepts 580 credit scores, even lower with compensating factors
Sellers can contribute up to 6% toward closing costs
Entire down payment can come from family gifts
Best For:
First-time buyers who don't have military service, need low down payment, and have limited credit history or funds for down payment assistance.
Scenario: $450,000 home purchase in Las Vegas
Let's compare the actual costs for a typical Nevada homebuyer with a 650 credit score and limited funds.
*Closing costs only (can request seller pay 4%)
*Down + closing costs (can request seller pay 6%)
Both VA and FHA loans offer powerful benefits. Your best choice depends on your eligibility and financial situation.
The down payment is often the biggest barrier to homeownership. Here's how VA and FHA loans differ and what that means for Nevada buyers.
VA loans are the only major loan program that offers 100% financing with no down payment required, regardless of credit score or loan amount (up to reasonable lender limits).
FHA requires a minimum 3.5% down payment with a 580+ credit score. With 500-579 credit score, 10% down payment is required.
Nevada Housing Division offers down payment assistance programs that can cover part or all of the 3.5% requirement for qualifying first-time buyers.
VA loans allow you to keep this money for furniture, emergency fund, or investing
Mortgage insurance is one of the biggest cost differences between VA and FHA loans. Here's the complete breakdown and how it affects your monthly payment.
VA loans have ZERO monthly mortgage insurance regardless of down payment amount, credit score, or loan-to-value ratio.
VA loans have a one-time funding fee (typically 2.15% for first-time use) that can be financed into the loan. Disabled veterans are exempt. This is far less costly than FHA's lifetime MIP.
FHA requires 0.55% annual MIP on the loan amount, paid monthly for the life of the loan. Cannot be removed without refinancing.
Based on a $450,000 Nevada home purchase with 30-year mortgage
Both VA and FHA loans are designed for borrowers with less-than-perfect credit. Here's what you need to qualify.
Most Nevada VA lenders require 580-620 minimum credit score, though the VA itself doesn't set a minimum requirement.
FHA requires 580 minimum credit score for the 3.5% down payment option. 500-579 scores require 10% down payment.
Let's compare VA and FHA loans across common Nevada homebuyer scenarios to help you make the best choice.
Profile: Air Force veteran stationed at Nellis AFB, 720 credit score, $5,000 saved, $75K income, wants to buy $425K home in Las Vegas
Clear winner for this veteran. VA saves $14,875 upfront and $195/month forever. Total 30-year savings exceeds $85,000. FHA would leave no emergency fund.
Profile: Teacher in Henderson, 620 credit score, $18K saved, $65K income, wants to buy $375K condo, no military service
VA loans require military service (active duty, veteran, National Guard/Reserve with qualifying service, or eligible surviving spouse).
FHA is the only government-backed option for non-military buyers. With 620 credit and 3.5% down, this teacher can become a homeowner. Plan to refinance to conventional once equity reaches 20% to eliminate MIP.
Profile: Army veteran + spouse, 680 credit, $95K combined income, $35K student loans + car payment, buying $500K home in Reno
VA is the only viable path to homeownership here. The absence of PMI keeps the payment low enough to qualify despite high debt. FHA would require paying down $10K+ in debt before qualifying. VA's flexible DTI guidelines (up to 50% with compensating factors) make this possible.
Profile: Marine veteran, 710 credit, $60K saved, wants to buy $650K 4-unit property in Las Vegas, live in one unit and rent others
VA loan is the ultimate house-hacking tool. Buy a 4-unit with $0 down, live in one unit, rent the other three. Rental income covers 75%+ of the mortgage. No PMI means maximum cash flow. This strategy builds wealth while living nearly rent-free. FHA works but VA is vastly superior for this exact scenario.
Common questions Nevada homebuyers ask when choosing between VA and FHA loans
Yes, if you're a veteran or active military member, you can qualify for both VA and FHA loans. However, you can only have one mortgage at a time under each program. If you qualify for both, VA is almost always the better choice due to zero down payment and no PMI. The only scenario where FHA might make sense is if you've exhausted your VA entitlement on another property and need to purchase above the conforming limit without a down payment - though even then, VA often wins.
Both programs have similar credit score requirements (580-620 minimum), but VA loans are often easier to qualify for due to more flexible underwriting:
FHA is easier in one aspect: anyone can qualify regardless of military service, whereas VA is restricted to veterans and military members.
VA loans typically have 0.25-0.5% lower interest rates than FHA due to the VA guarantee reducing lender risk. For Nevada homebuyers in 2025:
On a $450K loan, 0.25% lower rate saves approximately $30/month or $10,800 over 30 years. Combined with no PMI, VA loans save dramatically more in total borrowing costs.
Yes! Veterans who initially used FHA can refinance to a VA loan through a VA cash-out or standard refinance. This is a smart strategy to:
Many Nevada veterans start with FHA before knowing about VA benefits, then refinance to VA once they discover the superior terms. You'll pay a VA funding fee on the refinance (typically 2.3% for refinances), but eliminating lifetime FHA MIP often pays this back within 2-3 years.
Both VA and FHA have specific property requirements, though they're similar in practice:
Both programs require the property to be your primary residence. VA allows up to 4-unit properties with 0% down; FHA also allows 1-4 units with 3.5% down. Neither program allows pure investment properties (must owner-occupy). VA inspections can be slightly stricter, particularly regarding roofing and HVAC systems.
Both VA and FHA loans typically close in 30-45 days in Nevada. However, closing times depend more on your lender's efficiency than the loan type:
Pro tip: Get your VA Certificate of Eligibility (COE) before shopping for homes to speed up the process. We provide 24-hour pre-approval for qualified Nevada veterans, and can often close VA loans in 25-30 days with an experienced team.
Yes, Nevada sellers generally prefer VA loans over FHA, and many listing agents specifically welcome VA offers. Here's why:
In competitive Nevada markets like Las Vegas and Reno, strong VA pre-approval letters from reputable lenders carry significant weight. Educate listing agents that VA loans close just as fast as FHA and often have lower fallout rates. Our pre-approval letters emphasize the buyer's strong qualification and our proven 95%+ close rate.
Yes, you can have both a VA loan and an FHA loan simultaneously if you meet all requirements for each program. Common scenarios include:
Both programs require the property to be your primary residence. Having two "primary residences" is difficult to prove. Most common scenario is PCS military relocation where you're required to move but can't sell existing home. Consult a lender to determine if your specific situation qualifies.
Our Nevada VA loan specialists can help you determine whether VA or FHA is the best fit for your situation