Las Vegas loan programs: which mortgage fits your situation
The right program can change your down payment, your rate, your buying power or your entire investment strategy. We went through every major option with mortgage advisor Wes Friedman — FHA and VA at the entry end, conventional and jumbo in the middle, and the investor tools most buyers have never heard of. Plus the actual math on the 50-year mortgage.
Every program at a glance
| Program | Min down | Min credit | Best suited to |
|---|---|---|---|
| VA | 0% | 580 | Eligible veterans and active duty — no MI, no loan limit |
| FHA | 3.5% | 580 | Lower credit scores, smaller down payment |
| Conventional | 3% (20% investment) | 620 | Stronger credit; MI can be removed later |
| Jumbo | 20% | — | Loans above the conforming limit |
| DSCR | 15–25% | 620 | Investors; property qualifies, not the borrower |
| Second home | 10% | ~620 | Vacation property you occupy part of the year |
| ARM | Varies | Varies | Buyers with a clear refinance exit in 2–5 years |
| Interest-only | Varies | Varies | Investors prioritising cash flow over payoff |
| Bank statement | 15–25% | ~660 | Self-employed with heavy write-offs |
| P&L | 20–25% | ~660 | Self-employed whose recent income jumped |
| 1099-only | 15–25% | ~660 | Contractors, gig workers, Uber drivers |
| Fix and flip | ~30% | — | Flippers — lends against after-repair value |
Down payment and credit minimums interact. A 620 score on a program that allows 620 usually means a larger down payment than the headline minimum.
FHA and VA
FHA — not a first-time buyer loan
This is the most common misunderstanding about FHA. It is an entry-level program, not a first-time buyer program. Plenty of repeat buyers use it. What it offers is a 3.5% down payment and real tolerance on credit, with underwriters going down to 580 while still delivering a competitive rate, because the loan is government insured.
You can also hold an FHA loan alongside a conventional loan. Holding two FHA loans at once is possible but restricted — generally you need to be at least 100 miles from the existing FHA property, unless there is a qualifying circumstance such as hardship or a documented increase in family size.
That single feature is why many buyers use FHA to get in, then refinance to conventional once their credit and equity support it.
VA — the best terms available, if you qualify
- 100% financing — zero down, which no other mainstream program offers
- No mortgage insurance at any down payment
- No loan limits — large loans are possible if you can afford the payment
- Credit from 580, and among the most flexible loans to underwrite
- Military service counts as work history, so recently discharged buyers do not need two years of civilian employment
The only real limitation is eligibility. You must be active duty or honorably discharged.
Conventional and jumbo
Conventional suits stronger credit profiles. Minimum down is as low as 3% on a primary residence, and 620 is the floor on score — though for the best available rate and terms you want 780 or above.
The structural advantage over FHA is mortgage insurance. Below 20% down you pay it, but it comes off once you reach roughly a 20% equity position. Expect to carry it a minimum of two years after closing unless you make substantial improvements or pay the principal down to that threshold.
For investors
FHA and VA do not finance rental property. Conventional does, at a 20% minimum down payment, and you can hold up to ten financed properties. Beyond ten, you move to DSCR or other non-QM financing.
Jumbo
A jumbo loan is simply one above the conforming limit. Underwriting is more intensive and the minimum down payment is 20%.
| Limit | Figure at time of recording |
|---|---|
| FHA loan limit, Clark County | $524,225 |
| Conforming limit, Clark County | $806,500 |
Both figures are reset annually. Confirm the current year's limits before relying on either — and note the conforming limit sits comfortably above the Las Vegas median, so most buyers are nowhere near jumbo territory.
DSCR loans — the property qualifies, not you
Debt service coverage ratio loans are the closest thing left to a stated income loan, and they are investment-only.
Instead of examining your income, the lender compares the proposed mortgage payment against market rents for the property. If the rent covers the payment at the required ratio — a $1,000 payment against rents of $750 or more, in the example Wes gave — you do not document personal income at all.
- No tax returns
- No employment verification
- No reserve requirements
- You only document the assets for the down payment
Down payment: 15–25%. Rate: roughly half a point above a conventional investment loan. Credit: possible at 620, but expect a down payment closer to 50% at that score.
Short-term rentals
For Airbnb-style properties, lenders can sometimes use AirDNA projections as the rental figure in the ratio calculation rather than long-term market rent.
Cash-out and refinance
DSCR also works as a refinance. If you own an investment property — including one bought with cash — you can pull equity back out to acquire the next one. That is the mechanism most portfolio investors use to scale past the conventional ten-property ceiling.
More detail in the DSCR loan guide and how to evaluate a rental property.
Second homes and vacation property
This one changed, and the change catches people out.
Before 2020, buyers routinely used vacation-home financing at 10% down and then ran the property as a short-term rental. Loan-level price adjustments were added afterward, and the result is counterintuitive: a second home now carries a higher rate than an investment property, plus discount points.
You can still buy a second home and short-term rent it, provided you occupy it roughly half the year. The trade is straightforward — 10% down and a higher rate, or 25% down on a conventional investment loan and a better rate. If you have the capital, the conventional route usually wins.
Credit ranges run from about 660 on investment property loans and around 620 on second homes, with a lower score meaning a larger down payment.
ARMs and interest-only
Adjustable rate mortgages
The spread has compressed. A 7-year ARM used to sit roughly a full point below a 30-year fixed; that gap is now closer to three quarters of a point. On government-insured ARMs, rates under 5% have been available.
The logic for taking one is entirely about the exit. If you expect to refinance in two, three or five years, an ARM buys payment relief in the meantime. If rates rise instead, you are exposed. It is a bet with a deadline, and you should know what your refinance trigger is before you sign.
Interest-only
Lower payment, because you are not paying principal. The interest-only period typically runs ten years, after which the loan amortises over the remaining twenty. These are non-QM, usually adjustable, with no loan limit and credit requirements that flex with the down payment.
The honest framing: this needs a disciplined borrower with a plan. Used passively, the loan never gets paid off.
Where it works well is rental property held for cash flow rather than payoff. Keep the payment low, maximise monthly cash flow, and plan to refinance or 1031 exchange out before the interest-only period ends. That is a strategy. Paying interest only because the payment is easier is not.
When tax returns don't tell the real story
Small business owners expense aggressively to reduce tax liability. It works — right up until they apply for a mortgage and the returns show almost no income. Non-QM programs exist for exactly this gap.
| Program | What it uses as income | Down |
|---|---|---|
| Bank statement | 12 or 24 months of deposits, averaged, minus an expense ratio | 15–25% |
| P&L | An accountant-prepared profit and loss statement | 20–25% |
| 1099-only | Your 1099s, without the write-offs that would sink the application | 15–25% |
Expect roughly half to three quarters of a point more in rate than conventional. For a borrower with seven or eight companies and no appetite for assembling every document, that premium buys a great deal of simplicity.
The P&L route has a specific use case worth knowing: a business whose recent year is dramatically better than its history. Tax returns average that away; a current profit and loss captures it.
See the self-employed mortgage guide for more.
Fix and flip financing
Different mechanics from every other loan here, because it lends against what the property will be worth.
- Around 30% down to start
- The lender determines an after-repair value based on the planned improvements
- You can finance part of the rehab cost, and sometimes the carrying cost of the mortgage, against that ARV
- Funds release in draws — commonly at 25% stages, with the lender re-inspecting before releasing the next one
- Payments begin when the loan starts, though ARV headroom can sometimes cover them
- Plan on roughly a six-month project timeline
You do not get to pay contractors however you like. The lender monitors construction and pays out against completed stages, which is a constraint worth understanding before you budget.
More in the fix and flip loan guide.
The 50-year mortgage, actually calculated
At the time of recording this was a proposal, not an available product. The pitch is affordability relief. The arithmetic is less impressive.
Shorter terms carry lower rates — a 15-year currently runs about half a point below a 30-year. Extending in the other direction should work the same way, so assume a 50-year sits about half a point above a 30-year.
Both figures are on a $500,000 loan with 5% down. So the realistic case is $144 a month in exchange for twenty additional years of debt. Buying power increases by roughly $20,000 — on a half-million-dollar purchase.
There is a second problem. Mortgages are front-loaded with interest. Five years into a 50-year loan, your principal balance has barely moved. Most people never pay off a 30-year; a 50-year term on a buyer in their fifties is a payment schedule running past 100.
There are easier ways to find $144 a month than borrowing twenty extra years into the future. A longer term is a weak band-aid over a budget problem.
Loan program FAQ
Is an FHA loan only for first-time buyers?
No. FHA is an entry-level program, not a first-time buyer program. It allows a 3.5 percent down payment and is far less restrictive on credit score, with underwriters going down to 580. Many first-time buyers use it for those reasons, but previous homeowners can use it too.
What is the main drawback of an FHA loan?
Mortgage insurance lasts for the life of the loan regardless of how much you put down. Even at 20 percent down you pay it. On a conventional loan, mortgage insurance can be removed once you reach roughly 20 percent equity, which is the key structural difference between the two.
How much do you need down for a VA loan?
Nothing. VA offers 100 percent financing with no down payment and no mortgage insurance, and there are no loan limits, so a large loan is possible provided you can afford the payment. Credit can go down to 580, and recently discharged service members do not need a two-year work history because military service counts. The catch is eligibility: you must be active duty or honorably discharged.
What is a DSCR loan?
A debt service coverage ratio loan is an investment-only mortgage that qualifies the property rather than the borrower. The lender compares the proposed mortgage payment against market rents. If the rent covers the payment at the required ratio, you do not document personal income, tax returns or employment. Down payments run 15 to 25 percent, and rates sit around half a point above a conventional investment loan.
How many conventional mortgages can I have on rental properties?
Ten financed properties. Beyond that you need alternative financing such as DSCR or other non-QM products. Conventional investment property purchases require a minimum of 20 percent down.
Can self-employed buyers get a mortgage without tax returns?
Yes, through non-QM programs. Bank statement loans use 12 or 24 months of deposits, averaged and reduced by an expense ratio, as income. P and L loans use an accountant-prepared profit and loss statement. There is also a 1099-only product for contractors and gig workers. These typically need 15 to 25 percent down and cost roughly half to three quarters of a point more in rate.
Is a 50-year mortgage a good idea?
The savings are smaller than most people assume. On a $500,000 loan with 5 percent down, if the 50-year rate runs half a point above the 30-year, the payment difference is about $144 a month for twenty additional years of debt. Only if the rate were identical would the saving reach roughly $325 a month. It also increases buying power by only around $20,000.
It is never just the rate
Programme, term, down payment, mortgage insurance and your exit strategy all move together. Every loan should be built with a five-year projection and a plan to get out of it if the market changes. That conversation is specific to your situation.
Related: mortgage questions every buyer asks, how much income you need to qualify, investing strategies that still work, and what a home actually costs per month.
Subscribe to InvestwithJim on YouTube
Jim Fong · NV license BS.0068736 · The Jim Fong Group at Real Broker · 702-997-2050
General information only, not a loan commitment or an offer to extend credit. Rates, programs, loan limits and guidelines change. Confirm current terms with a licensed mortgage professional.