Nevada Loan Options
Nevada FHA Loan
FHA (Federal Housing Administration) loans are a government-backed mortgage option designed to enhance homeownership accessibility, particularly for first-time buyers and individuals with moderate incomes in Nevada. One of the distinctive features of FHA loans is their relatively low down payment requirement, typically as low as 3.5% of the home’s purchase price. These loans are insured by the FHA, providing lenders with added security and enabling them to offer more favorable terms, even to borrowers with less-than-perfect credit.
FHA loans in Nevada accommodate various financial situations by allowing funds for the down payment to come from diverse sources, including gifts. Additionally, FHA loans often feature competitive interest rates, making them a popular choice for individuals seeking a flexible and accessible financing option to enter the housing market.
Some Benefits of an FHA Loan:
New, Lower Mortgage Insurance Premiums: In 2023, the FHA implemented reduced monthly mortgage insurance premiums, providing borrowers in Nevada with more affordable homeownership options.
Low Down Payment: Qualified applicants can benefit from a minimum down payment requirement of only 3.5%.
First-Time Home Buyer Eligibility: FHA loans are an excellent option for first-time home buyers in Nevada. However, eligibility is not limited to first-time buyers; anyone can qualify for a Nevada FHA loan, whether purchasing or refinancing a home.
Flexible Underwriting: One of the primary advantages of an FHA loan in Nevada is its lenient credit criteria compared to conventional loans sold to Fannie Mae and Freddie Mac. Additionally, FHA loans allow for a higher debt-to-income ratio, potentially requiring less income to qualify.
Credit Problems: Individuals with past credit issues or limited traditional credit history can still secure FHA financing in Nevada.
Non-Traditional Credit: If you lack a traditional credit score, contact us today to explore eligibility for non-traditional credit qualification.
Assumable Loans: Nevada FHA loans are assumable, enabling individuals to take over the mortgage without incurring additional costs associated with obtaining a new loan.
2024 FHA Loan Limits for Nevada
| County | 1 Unit Property | 2 Unit Property | 3 Unit Property | 4 Unit Property |
|---|---|---|---|---|
| Carson City | $510,600 | $653,650 | $790,100 | $981,950 |
| Douglas | $657,800 | $842,100 | $1,017,900 | $1,265,000 |
| Storey, Washoe | $621,000 | $795,000 | $771,125 | $958,350 |
| Churchill, Clark, Elko Esmeralda, Eureka, Humboldt, Lander, Lincoln, Lyon, Mineral, Nye, Pershing, White Pine |
$498,257 | $637,950 | $1,592,700 | $1,979,350 |
FHA Mortgage Insurance Premiums:
The FHA Loan encompasses both upfront and monthly mortgage insurance premiums.
Upfront Mortgage Insurance Premium (UFMIP): The UFMIP is a mandatory fee for loans insured by the Federal Housing Administration (FHA), serving as insurance coverage for the FHA against potential losses in the event of borrower default.
- The UFMIP is a one-time payment due at loan closing, calculated at 1.75% of the loan amount.
- Borrowers can pay the UFMIP upfront in cash, increasing closing costs, or opt to finance it into the loan amount, thereby increasing the overall loan balance.
- The UFMIP is typically non-refundable; however, refinancing an existing FHA loan into a new FHA loan within a specific timeframe may qualify for a credit toward the new UFMIP.
Monthly Mortgage Insurance Premium (MIP): The monthly MIP is an ongoing fee integrated into borrowers’ monthly mortgage payments for FHA loans.
- The monthly MIP is combined with the mortgage payment and remitted monthly.
- Its calculation involves multiplying the loan amount by an annual MIP rate and dividing by 12 months. The annual MIP rate depends on factors like the loan amount, term, and loan-to-value ratio.
- While most FHA loans require the MIP payment for the loan’s duration, some may allow MIP cancellation after 11 years, contingent on the loan-to-value ratio at origination.
For precise and current details on FHA Loans, contact one of our loan officers in your Nevada area today at 1-866-389-2778.
2024 FHA Mortgage Insurance Premiums
Mortgage Term of more than 15 Years
| Base Loan Amount | Loan to Value | MIP (basis points) | Duration |
|---|---|---|---|
| Less than or equal to $726,200 | ≤ 90.00% | 50 bps | 11 years |
| > 90.00% but ≤ 95.00% | 50 bps | Mortgage Term | |
| > 95.00% | 55 bps | Mortgage Term | |
| Greater than $726,200 | ≤ 90.00% | 70 bps | 11 years |
| > 90.00% but ≤ 95.00% | 70 bps | Mortgage Term | |
| > 95.00% | 75 bps | Mortgage Term |
Mortgage Term less than or equal to 15 Years
| Base Loan Amount | Loan to Value | MIP (basis points) | Duration |
|---|---|---|---|
| Less than or equal to $726,200 | ≤ 90.00% | 15 bps | 11 years |
| > 90.00% | 40 bps | Mortgage Term | |
| ≤ 78.00% | 15 bps | 11 years | |
| Greater than $726,200 | > 78.00% but ≤ 90.00% | 40 bps | 11 years |
| > 90.00% | 65 bps | Mortgage Term |
Information and self-help tools are provided for your independent use and are not intended to provide investment advice. We cannot and do not guarantee loan eligibility or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to speak with one of our experienced loan officers for a loan eligibility analysis and custom rate and payment estimate.
