Mortgage Friend · FHA Loans · Las Vegas, NV
FHA loans are backed by the federal government and designed for buyers who don't need perfect credit. Minimum 3.5% down at 580+ credit score. Flexible income and debt requirements.
The Basics
An FHA loan is a mortgage insured by the Federal Housing Administration (FHA), a division of the U.S. Department of Housing and Urban Development (HUD). Because the federal government backs the loan, lenders are willing to approve borrowers with lower credit scores and smaller down payments than a conventional loan would allow.
FHA loans are one of the most widely used purchase loan programs in the country — and for good reason. They're particularly well-suited for first-time buyers, buyers rebuilding credit, and anyone who wants to preserve cash rather than put a large amount down.
The trade-off is mortgage insurance. FHA requires both an upfront mortgage insurance premium (MIP) rolled into the loan balance, and an annual premium added to your monthly payment. On most FHA loans originated with less than 10% down, that insurance stays for the life of the loan — unlike conventional PMI, which drops off at 20% equity.
FHA is a strong fit for: first-time buyers, buyers with credit challenges (500–619), buyers who want a low down payment without VA eligibility, and buyers who qualify for Nevada down payment assistance programs.
Eligibility
FHA has more flexible qualification standards than conventional loans, but there are still clear guidelines you need to meet. Here's what lenders look at:
580+ for 3.5% down. 500–579 with 10% down. Below 500 does not qualify for FHA financing.
Generally under 43% back-end DTI, up to 57% with strong compensating factors (reserves, credit, etc.).
FHA loans require owner-occupancy. You must intend to live in the property as your primary residence. Investment-only purchases do not qualify.
The property must meet FHA minimum property standards. An FHA appraisal is required — the appraiser will flag safety and structural issues that must be addressed before closing.
Two years of employment history is preferred. Gaps are acceptable with explanation. Self-employed borrowers need 2 years of tax returns.
Must be a lawful U.S. resident (citizen, permanent resident alien, or non-permanent resident alien with eligible work authorization).
Side by Side
The right loan depends on your credit score, down payment, and how long you plan to keep the mortgage. Here's a direct comparison.
| Factor | FHA Loan | Conventional Loan |
|---|---|---|
| Minimum credit score | 500 | 620 |
| Minimum down payment | 3.5% | 3% (HomeReady/Home Possible) |
| Mortgage insurance | Required; stays for life of loan (with <10% down) | Required under 20% down; removable at 20% equity |
| Upfront MIP | 1.75% of loan amount | None |
| Loan limit — Clark County 2026 | $524,225 | $806,500 |
| Best for | Credit challenges, low down payment, first-time buyers | 620+ credit, want PMI to drop off, higher loan amounts |
Las Vegas Market
The 2026 FHA loan limit for Clark County is $524,225. With the current Las Vegas median home price sitting around $440,000, the vast majority of homes in the metro are well within FHA loan limits — meaning FHA is a viable path for most buyers in this market.
Las Vegas buyers using FHA can also stack Nevada down payment assistance programs to reduce out-of-pocket costs even further. The Home Is Possible program provides up to 5% of the loan amount in down payment assistance for qualifying buyers — and it works with FHA loans. In some scenarios, a buyer can cover the entire FHA down payment with DPA, leaving only closing costs as an out-of-pocket expense.
If you're a first-time buyer or haven't owned a primary residence in the past three years, you likely qualify for these programs. We'll verify eligibility at no cost when you apply.
Common Questions
Start your application online or call us directly. You'll hear back the same day.