Low Down Payment Options That Actually Exist (And How to Qualify)

One of the biggest myths in homebuying is that you need 20% down to purchase a home. That number gets repeated so often that a lot of buyers either delay buying for years trying to save up, or assume they're just not ready yet.

The reality is most buyers in Las Vegas are not putting 20% down. There are multiple loan programs with low or even no down payment options, and some of them come with additional help for closing costs too. Here's what actually exists and who qualifies.

Why the 20% Myth Persists

The 20% figure comes from one specific advantage: if you put 20% down on a conventional loan, you avoid private mortgage insurance. That's a real benefit. But it's not a requirement to buy a home. It's just the threshold where one fee goes away.

For a $450,000 home in Vegas, 20% down is $90,000. Most first-time buyers don't have $90,000 sitting in savings on top of closing costs and reserves. And they don't need to.

The Low Down Payment Options Worth Knowing

FHA: 3.5% Down

FHA loans allow down payments as low as 3.5% with a credit score of 580 or higher. On a $450,000 purchase, that's $15,750 down. Much more manageable for most buyers.

The tradeoff is mortgage insurance. FHA loans carry both an upfront premium and a monthly premium that in most cases stays for the life of the loan. It's worth factoring that into your monthly payment comparison, but for buyers with credit scores below 680, FHA often still comes out as the best option overall.

Conventional 97: 3% Down

Fannie Mae and Freddie Mac both offer conventional loan programs with just 3% down. These include Fannie Mae's HomeReady and Freddie Mac's Home Possible, which are designed for low to moderate income buyers and come with reduced mortgage insurance costs compared to standard PMI.

To qualify, your income typically needs to be at or below 80% of the area median income for your county. In Clark County, that threshold changes periodically, so it's worth checking current limits with your lender.

The big advantage over FHA is that PMI on a conventional loan is removable once you reach 20% equity. You're not locked into that cost forever.

VA: 0% Down

If you're a veteran or active duty military, the VA loan program allows 100% financing with no down payment and no mortgage insurance. It's the strongest low down payment option available, full stop. If you qualify, this is almost always the first program to consider.

Full breakdown in the VA loan article on this site.

USDA: 0% Down

USDA loans are backed by the U.S. Department of Agriculture and offer 100% financing for homes in eligible rural and suburban areas. The Las Vegas valley itself doesn't qualify, but some surrounding areas in Nevada do. If you're open to living outside the immediate metro, it's worth checking eligibility.

USDA loans have income limits and property location requirements. Your lender can check both quickly.

Nevada Housing Division (NHD) Programs

The Nevada Housing Division offers down payment assistance programs for eligible buyers. These programs can provide grants or second loans to cover part or all of your down payment and closing costs.

Eligibility is based on income limits, purchase price limits, and other factors. These programs layer on top of FHA or conventional loans, so your primary loan still needs to meet standard qualifying guidelines. They also typically require a homebuyer education course.

This is an area where working with a local broker matters. Not every lender offers NHD programs, and the details change. A broker who works in this market regularly is going to know what's currently available and whether you qualify.

What About Closing Costs?

Down payment is only part of what you need to close. Closing costs on a typical Las Vegas purchase run roughly 2–3% of the loan amount and include lender fees, title, escrow, prepaid interest, homeowners insurance, and property tax impounds.

A few ways buyers address closing costs:

Seller concessions. In a negotiation, you can ask the seller to contribute toward your closing costs. How much is negotiable and depends on the market, the offer, and the loan type. VA loans allow up to 4% in seller concessions. Conventional and FHA have their own limits.

Lender credits. You can take a slightly higher interest rate in exchange for the lender covering some or all of your closing costs. Whether this makes sense depends on how long you plan to stay in the home.

Down payment assistance programs. Some NHD programs cover closing costs in addition to the down payment, so you may be able to address both with one program.

What You Actually Need to Have Ready

Even with low or no down payment options, you're going to need something. Here's what lenders are going to look for:

• Enough funds to cover your down payment, even if it's only 3–3.5%
• Closing costs, unless they're covered by seller concessions, lender credits, or assistance programs
• Reserves in some cases, meaning money left in your account after closing
• A paper trail showing where your funds came from and how long they've been there

The cleaner your financial documentation, the smoother this goes.

The Bottom Line

You don't need 20% down to buy a home in Las Vegas. You might need as little as 3.5%, or nothing at all depending on your loan type. The right approach depends on your credit, income, savings, and how the different programs compare for your specific situation.

If you want to see what you actually qualify for and what your options look like side by side, that's exactly what a 15-minute call covers.

Chris Casiello is a licensed mortgage broker and loan officer at The Casiello Team | Powered by Five Star Mortgage, based in Henderson, NV. He specializes in purchase loans, first-time homebuyers, VA lending, and creative loan problem-solving in the Las Vegas metro area.