This week we've covered down payment options, new construction vs. resale, property taxes, and where to buy for long-term wealth building. We're closing out the series with the myth that stops more first-time buyers than almost anything else: "I need 20% down."
The Straightforward Answer: No
Twenty percent down is not a requirement to buy a home in Las Vegas — it's a legacy number most people repeat without knowing why. Here's what's actually available:
- Conventional loans: as low as 3% down for qualified buyers
- FHA loans: 3.5% down, with more flexible credit requirements
- VA loans: 0% down for eligible veterans and service members
- USDA loans: 0% down in eligible areas, including parts of outer Henderson, North Las Vegas, and Boulder City
So Why Does 20% Keep Coming Up?
Two reasons. First, putting down less than 20% on a conventional loan typically means paying private mortgage insurance (PMI) until you build enough equity — an added monthly cost, not a barrier to buying. Second, sellers in competitive situations sometimes view larger down payments as a sign of a stronger, more certain buyer — but that's a negotiating factor, not a lending requirement.
What a Smaller Down Payment Actually Costs You
The honest trade-off is a slightly higher monthly payment (from PMI or mortgage insurance premiums, and financing a larger principal) versus tying up tens of thousands of dollars that could otherwise go toward closing costs, reserves, or simply getting into the market sooner rather than waiting years to save 20%. In a market where home values have historically climbed over time, waiting to save the full 20% has often cost buyers more in appreciation than they saved in mortgage insurance.
Combine It With What We Covered Earlier This Week
Between FHA/conventional/VA/USDA loan options, Nevada's Home Is Possible assistance (Day 1), and choosing the right neighborhood for your budget and goals (Day 4), most first-time buyers in the Las Vegas Valley need far less cash up front than they assume.
Ready to Find Out What You Actually Qualify For?
If you've read all five posts this week and you're still wondering where you'd start, that's exactly what we're here for.
This post reflects general lending information as of publication and is not a commitment to lend. Loan terms, eligibility, and requirements vary by lender and program and change over time — verify current details with a licensed lender. Speak with Sherwyn or Ferguz Colonia for guidance specific to your situation.
Sherwyn Colonia, NVRE License #S.185645 | Ferguz Colonia, NVRE License #S.199036 FIV Realty | (702) 234-5985 | thecoloniateam.com This is not intended to solicit properties currently listed for sale. Equal Housing Opportunity. All information deemed reliable but not guaranteed. We are committed to compliance with the Fair Housing Act and the Nevada Real Estate Division's licensing and advertising regulations.
