FHA Loan Limits in Nevada
If you’ve been wanting to purchase a home in Nevada, a mortgage backed by the Federal Housing Administration (FHA) could make homeownership more affordable. Unlike conventional loans, FHA loans have lower down payment and credit score requirements.
The FHA loan limit for a single-family home in most Silver State counties is $472,030, but rises in other areas. Clark County, home to Las Vegas, has a limit of $494,500, while the highest FHA loan limit is $657,800 in Douglas County, home to Lake Tahoe.
Nevada FHA loan limits by county
| County name | One unit | Two units | Three units | Four units | Median sales price |
|---|---|---|---|---|---|
| CARSON CITY | $506,000 | $647,750 | $783,000 | $973,100 | $440,000 |
| CHURCHILL | $472,030 | $604,400 | $730,525 | $907,900 | $325,000 |
| CLARK | $494,500 | $633,050 | $765,200 | $950,950 | $430,000 |
| DOUGLAS | $657,800 | $842,100 | $1,017,900 | $1,265,000 | $572,000 |
| ELKO | $472,030 | $604,400 | $730,525 | $907,900 | $280,000 |
| ESMERALDA | $472,030 | $604,400 | $730,525 | $907,900 | $59,000 |
| EUREKA | $472,030 | $604,400 | $730,525 | $907,900 | $280,000 |
| HUMBOLDT | $472,030 | $604,400 | $730,525 | $907,900 | $201,000 |
| LANDER | $472,030 | $604,400 | $730,525 | $907,900 | $158,000 |
| LINCOLN | $472,030 | $604,400 | $730,525 | $907,900 | $155,000 |
| LYON | $472,030 | $604,400 | $730,525 | $907,900 | $360,000 |
| MINERAL | $472,030 | $604,400 | $730,525 | $907,900 | $80,000 |
| NYE | $472,030 | $604,400 | $730,525 | $907,900 | $250,000 |
| PERSHING | $472,030 | $604,400 | $730,525 | $907,900 | $102,000 |
| STOREY | $621,000 | $795,000 | $960,950 | $1,194,250 | $540,000 |
| WASHOE | $621,000 | $795,000 | $960,950 | $1,194,250 | $540,000 |
| WHITE PINE | $472,030 | $604,400 | $730,525 | $907,900 | $110,000 |
How are FHA loan limits determined?
The amounts FHA is allowed to lend depend on the conforming loan limit, which is determined by the Federal Housing Finance Agency each year based on the national average home sales price. Because prices can vary greatly by location, the Department of Housing and Urban Development (HUD) creates a range.
The “floor,” or the lowest maximum mortgage amount that the FHA will finance, is set at 65% of the conforming loan limit. For a single-family home, this works out to be $472,030. The “ceiling” is 150% of the conforming loan limit, which is $1,089,300. This top limit only applies to the most expensive areas, while the lowest limit applies to most of the country.
How to qualify for an FHA loan in Nevada
While FHA loans have less strict qualifications, you still need to meet these minimum requirements before you’re able to close on a house with a Nevada FHA loan:
- A 500+ credit score. FHA lenders require that borrowers have at least a 500 credit score. And, if your score is higher, 580+, you qualify to make a smaller down payment. If you’d like to work on your score, here’s how to improve your credit.
- A 3.5% to a 10% down payment. If you have a credit score of 580 or higher, you need only a 3.5% down payment. If your score is between 500 and 579, you’ll need to pay at least 10% down. No matter your score, a larger down payment means a smaller monthly payment.
- A 43% debt-to-income (DTI) ratio. Your DTI is how much of your monthly income you pay towards debt. You generally need a DTI below 43% to qualify for an FHA loan, although some lenders may be willing to make exceptions up to 50%.
- An FHA home appraisal. Once a buyer accepts your offer, you’ll need to get an FHA home appraisal, which estimates the value of the home and ensures that it’s safe to live in.
- FHA mortgage insurance. FHA loans require two types of mortgage insurance. The annual mortgage insurance premium (MIP) ranges from 0.15% to 0.75% and is part of your monthly payment, while the upfront mortgage insurance premium (UFMIP) is 1.75% of your total loan amount and typically rolled into the mortgage.
- Occupancy. FHA loans require that you use your home as your primary residence for at least a year. You cannot purchase the home solely for the purpose of it being an investment or rental property.
Buying a multifamily property with an FHA loan
You could still get rental income, however, if you purchase a multifamily home. FHA loans allow you to buy a home with up to four units. As long as you live in one of the units for at least one year after you close on the home, you can rent out the other units.
FHA loan requirements such as credit score (500 to 580 minimum), down payment (3.5% to 10% minimum) and DTI (43% to 50% maximum) stay the same. To help you afford the larger space, though, FHA multifamily properties have a higher loan limit with each additional unit..
FHA lenders in Nevada
| Lender name | LT rating | Minimum FHA credit score |
|---|---|---|
| Rocket Mortgage | 5 stars | 580 |
| PennyMac Mortgage | 5 stars | 580 |
| Truist Mortgage | 4 stars | 580 |
| Caliber Home Loans | 3 stars | 620 |