FHA Loans
Nevada
Nevada maintains high equality ratings with a long list of anti-discrimination and pro-LGBTQ+ laws and policies. Las Vegas and Reno are among some of the most inclusive cities in the state, with ample housing and entrepreneurial opportunities.
Nevada FHA loans are a great alternative to traditional lending because they make purchasing a primary residence more accessible. Whereas a conventional mortgage has many strict requirements, a Nevada FHA loan is more catered to buyers who might not otherwise qualify for a loan.
Learn how to get started with Nevada FHA loan options, including eligibility and loan limit requirements.
What Are FHA Loans?
A Federal Housing Administration (FHA) loan is a government-insured mortgage issued by a bank or other approved lender. In the mid-1930s, the FHA was created to stimulate the economy and encourage more homeownership among Americans.
As a government-backed program, more lenders were and are willing to offer loans with less stringent lending requirements than conventional loans. Since then, millions of people, including those in Nevada, have become homeowners using the FHA loan program.
FHA loans are a great solution for first-time home buyers, especially those with less-than-perfect credit scores or unable to come up with a higher down payment and closing costs. However, despite the name, FHA loans aren’t reserved for first-time home buyers.
Prospective buyers in Nevada can qualify for an FHA loan, even if they have owned a house within the last three years. The FHA loan program is designed to be inclusive to all prospective buyers to purchase a primary residence. It’s most often used to purchase a single-family home but can also be used with multi-unit properties.
Do you meet the Nevada FHA loan requirements? Find out below.
Benefits of Federal Housing Administration Loans in Nevada
Nevada FHA loans offer buyers in the Silver State an easier solution to home buying. Here are some of the biggest advantages of the FHA loan program.
Small Down Payment Options
Most lenders require a minimum deposit, regardless of the loan type. FHA loans are a popular choice because of the low down payments, usually with a minimum deposit of between 3.5% and 10%. Additionally, FHA loans allow for gifted funds to be applied to the down payment requirement. This means any funds collected from family or friends can be applied as a deposit.
Down payment assistance programs are also available to Nevada buyers. Down payment assistance is available through the Home is Possible Program. The State of Nevada also offers a few Homeownership Assistance programs, including a repayment plan. Pride Lending can help you gain access to Nationwide DPA programs, too.
Competitive Interest Rates
If you are interested in an FHA loan in Texas, then you should understand the benefits of this option. Here are a few advantages Texas homebuyers will experience with FHA loans.
Flexible Underwriting Guidelines
Underwriting is the process of evaluating a borrower’s risk. Since these borrowers are in more precarious financial situations, most applications are underwritten manually. What loan officers look for during the underwriting process is usually more flexible with FHA loans, whereas a conventional product would have more strict requirements.
Assumable Mortgages (Buyer Can Take over Existing FHA Loan)
An FHA mortgage on a house in Texas may be eligible as an assumable mortgage for a new buyer. Essentially, instead of taking out a new loan to buy a house, you take over the debt and payments for an existing FHA mortgage and become the new owner of the house. This is an excellent option for people with spotty credit reports.
FHA Loan Requirements
Every lender will have their own requirements for the FHA program. However, the typical Texas FHA loan requirements are as follows.
Minimum Credit Score
To qualify for an FHA home loan, you should aim for a credit score of 580 or better, as they will allow you to access the best rates and lowest upfront expenses. Lenders approving FHA mortgages may allow for scores as low as 500 if they offer at least 10% upfront.
Down Payment Amount
As mentioned previously, the minimum down payment for an FHA mortgage is 3.5% for those with a score of 580 or greater; those with scores between 500 and 579 must make a minimum payment of 10%. Although this is a low down payment and makes homes more affordable, it also means you would pay a private mortgage insurance premium (MIP).
We understand that even 3.5% can feel like a challenge depending on your personal finances, but Pride Lending is here to assist. We’ll connect you with local, state, and nationwide down payment assistance programs that can provide you with grants or second liens.
Numerous organizations in Texas offer assistance for those who can’t afford their upfront costs. For example, you may choose DPA programs from the Texas State Affordable Housing Corporation (TSAHC) or the Texas Homebuyer Program from the Texas Department of Housing and Community Affairs.
Debt-To-Income Ratio (DTI)
DTI compares your monthly debt payments to your gross monthly income. You divide your debt total by the gross income each month and then multiply by 100 to get a percentage. The typical lender will require a maximum DTI of 43%. Lenders can make an exception to a maximum DTI of 57% if the borrower has a good credit profile and provides a larger down payment.
Property Standards
Since the government is backing this mortgage, approval for the property type is needed before the loan is given. An appraisal will ensure the property is safe to occupy and up to standards for liveable conditions.
Additionally, this home must become your primary residence to qualify. However, it is possible to purchase a property with up to 4 units and rent up to 3 units, as long as one is used as your permanent residence.
Mortgage Insurance Premiums (MIP)
Everyone, no matter how much they put down, needs to pay the upfront mortgage insurance premium, which is 1.75% of the loan amount. You’ll also have to pay ongoing annual mortgage insurance premiums, though this may not be for the entire length of the loan.
If you make a 10% down payment or more, the MIP will be removed after 11 years, but if you make less than this, you’ll have MIP for the entirety of the loan. It’s also possible to refinance into a conventional loan once you have 20% equity, which would remove mortgage insurance.
Nevada FHA Loan Limits
FHA loan limits refer to the maximum loan amount available through the program. Loan limits change yearly and vary based on the local market of the county in which you want to purchase. Most counties in Nevada have loan limits up to $498,257 for a single-family home. However, some more in-demand counties have higher limits.
As of 2024, FHA loan limits for single-family properties in Carson County are $510,600. In Douglas County, they are $657,800. FHA loan limits also increase for multi-unit properties, with a maximum of between $981,950 and $1,265,000 for four-unit property purchases.
Las Vegas, one of the most popular cities in Nevada, is located in Clark County and has loan limits of between $498,257 and $958,350, depending on property type. These FHA loan limits reflect a more competitive housing market with higher-than-average real estate prices.
The FHA loan limits are also based on median home prices, and the national conforming loan limit is calculated as a percentage of the loan limit floor and ceiling.
The FHA Loan Process
Are you ready to get started on your FHA home loan in Nevada? Qualify for an FHA loan with the following steps:
See if you meet the requirements
Evaluate if you have a credit score of 580 or greater, a DTI of 43% or lower, and that you meet the down payment requirement of 3.5%. You may still qualify if you have a score as low as 500 or a DTI of 57%, but this may limit your choices.
Contact Pride Lending
When you reach out to us, we’ll begin your loan consultation by reviewing your options with you. FHA-approved lenders are qualified to give out these mortgages, and finding the right loan partner is the key to a positive homebuying experience.
Apply and get pre-approved
Pre-approval will prepare you for a smoother buying experience and help you understand what you can afford. You will need many documents for your application, including tax returns, paychecks, and bank statements.
Shop for the perfect home
Once you’ve been preapproved, we’ll discuss your budget with you and send your preapproval letter to your realtor. You can then begin shopping for the right property in your area.
Submit an offer
You and your realtor will decide on a competitive bid and submit the letter to the seller.
Complete the application
The application is called the Uniform Residential Loan Application and will include many of the same details you needed for preapproval; however, it will also include property details, which the lender will use to determine whether the property meets their standards.
Offer acceptance
The seller will decide if they find your offer acceptable. If they do, then you’ll sign a purchase contract that tentatively agrees to buying the home.
Inspection
While not strictly necessary for the program, the lender will likely require you to have the property inspected, ensuring that there are no significant issues.
Conditions
If you’re happy with the inspection results, then our team at Pride Lending will walk you through the sales contract and make sure everything is correct.
Underwriting
We will submit all the details that you have provided to the lender, whose underwriting team will now take over. They will carefully investigate each facet of the loan and ensure that there are no issues with you or the home.
Appraisal
An approved appraiser will evaluate the property to determine if it is a fair value, is safe to live in, and meets the property requirements for FHA home loans.
Loan approval
Once the appraisal is complete and the details of the loan have been reviewed, the lender will proceed with the final approval of your loan so that you can close on the transaction. We will schedule the closing date with you and the title company will send the information regarding how to pay the upfront expenses.
Close on the home
All the documents will be signed, the title will be transferred to you, the closing costs will be paid, and you will become the new owner of that house with the help of an FHA home loan.
Why Choose Pride Lending for Your Texas FHA Loan?
When you need the right team on your side to navigate the Texas FHA program, a loan officer from Pride Lending is ready to help. We serve all our clients with the same care, offering excellent customer service and a streamlined application process to make homeownership affordable and accessible.
Our team is composed of allies and members of minority communities, including LGBTQ+ and BIPOC individuals. We’re here to help everyone, no matter their identity, and serve as an advocate for those who may feel underserved by the mortgage industry.
First-time homebuyers and repeat buyers alike can work with Pride Lending whether they want to buy a single-family home or learn about an FHA reverse mortgage. Call us today at 725-231-0192 to learn more about Texas FHA loans.