USDA Loans Nevada: Mortgages With No Money Down
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January 13, 2023

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Are you considering purchasing a home in Nevada? You may not know that there are great financing options available to help make owning a home more affordable.

One of the most popular loan options for first-time homebuyers is the USDA Loan, or United States Department of Agriculture Loan.

This loan offers several advantages over conventional loans, including no-money-down options and low-interest rates.

If you’re looking for a home in Nevada, here is what you need to know about USDA Loans.

See if you qualify for a zero-down USDA loan.

What’s in this article?

Become a Nevada homeowner with zero down
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USDA-eligible areas in Nevada
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Income limits
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Down payment and assistance
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Nevada USDA mortgage rates
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Pros and cons
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Credit score
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How to apply
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Become a homeowner in Nevada with zero down

A USDA Loan is a 100% financing mortgage program that allows buyers to purchase a home with no money down.

This is especially helpful for first-time and low-income homebuyers who may not have the funds available for a sizeable down payment. A USDA Loan also features lower closing costs than other loan programs, which can make buying a home more affordable.

What is a USDA loan?

A USDA loan is a regular home loan comparable to FHA or conventional. Yet, there’s a big difference: there’s no need to worry about making a down payment.

To qualify for a USDA loan, the property must meet certain requirements. In general, homes located in areas with populations less than 35,000 are eligible for financing through this program. To make sure that your chosen house falls within these criteria, you can use the Property Eligibility website created by USDA.

Don’t let a lack of savings prevent you from owning your dream home – take advantage of the incredible opportunity that comes with USDA loans. Familiarize yourself with the USDA loan requirements and eligibility criteria to get started on this life-changing journey.

USDA-eligible areas in Nevada

If you are a resident of rural areas, consider looking into the United States Department of Agriculture (USDA) mortgage program.

Even suburban regions may be eligible for USDA funding; head over to their interactive map and find out. Before doing so, though, take some time to explore all of your options in Nevada. Here are five locations that could be worth considering when applying for a USDA loan.

Tip: It may come as a surprise, but the USDA’s definition of “rural” is incredibly broad. Even cities with populations up to 35,000 can be classified as rural areas if they are part of a larger metropolitan area.

It pays off to investigate regions near your preferred city that could qualify. Let’s look at five major Nevada cities with USDA-eligible areas.

Note: All non-shaded areas are eligible

Las Vegas, Nevada

Las Vegas Nevada USDA home loan eligible areas map

There are a few USDA-approved towns surrounding the ever-popular city of Las Vegas. The towns are Boulder City, Pahrump, Indian Springs, and Overton. These small towns are within reach of Las Vegas but offer a much more relaxed and family-friendly environment, with more affordable home prices.

Las Vegas median home price: $385,000


Reno, Nevada

Reno Nevada USDA home loan eligible areas map

The Reno area has many opportunities for rural loan seekers as well. The towns of Golden Valley, Spanish Springs, and Lemmon Valley are all USDA-certified and perfect for families looking to get out of the hustle and bustle of city life.

Reno median home price: $525,000, but nearby USDA-eligible areas offer more affordable options.


Carson City, Nevada

Carson City Nevada USDA home loan eligible areas map

The Capital City of Carson City has a few towns that are also eligible for rural loans. The towns of Indian Hills, Dayton, and Kingsbury are USDA-approved for rural loan seekers. In 1859, the discovery of gold and silver on the Comstock Lode near Carson City launched it as a commercial hub. Since then, its importance has only grown due to being selected at Nevada’s state capital during the constitutional convention. Today, USDA buyers can enjoy a lake view with no down payment.

Carson City median home price: $387,500


Spring Valley, Nevada

Spring Valley Nevada USDA home loan eligible areas map

Nearby Spring Valley, Blue Diamond and Bonnie Springs are USDA-approved locations. This region is a popular destination for outdoor adventurers and nature lovers alike, thanks to its proximity to the Red Rock Canyon National Conservation Area.

Spring Valley median home price: $376,500


Sparks, Nevada

Sparks Nevada USDA home loan eligible areas map

Sparks is an outdoor enthusiast’s dream, with popular attractions such as the Nugget Casino Resort, The Outlets at Legends, and of course, ‘The Marina’—Sparks Marina. This public park offers a plethora of activities for all ages; from picnics to volleyball or bike riding to stand-up paddle boarding in the waters, there’s something for everyone here! USDA-approved towns around Sparks include Spanish Springs, Patrick, and Clark.

Sparks median home price: $379,750

See if your area in Nevada is eligible.

USDA loan income limits for Nevada

Owning a home can be a reality for many families, thanks to the USDA loan program.

Generous income limits allow those with limited-to-moderate earnings to access these loans; as long as your salary doesn’t exceed 115% of the median wage in your area, you’ll qualify. Make homeownership dreams come true with this amazing opportunity from the USDA today.

Most households with 1-4 members are eligible to receive an annual income of up to $103,500, while those comprising 5-8 individuals might get a maximum sum of $136,600. These limits tend to be higher in metropolitan places with more expensive living costs.

But note that USDA includes all adults 18 years old and above living in a household when calculating if the household is eligible for a loan. However, only household members on the loan application can help to qualify for financing.

Learn more about USDA income limits

County or Area1-4 member household income limit 2022-20235-8 member household income limit 2022-2023
Reno107,400141,750
Elko County103,500136,600
Esmeralda County116,750154,100
Eureka County125,550165,750
Humboldt County106,400140,450
Lander County129,150170,500
Lyon County103,500136,600
Mineral103,500136,600
Nye103,500136,600
White Pine103,500136,600

The following deductions can be made to your income when determining eligibility:

  • Childcare expenses for children under 12
  • Dependents living in the home
  • Certain medical expenses
  • Elderly households
  • Care of household members with disabilities

Those who think they are over income limits should check with a lender.

A great place to check income eligibility is USDA’s income tool.

USDA loan down payment and closing costs

If you’re a first-time homeowner or have minimal savings for a down payment, the USDA loan program can take a lot of overwhelm out of the process.

Although USDA loans do not require a down payment, buyers must cover the closing costs which typically equal around 2-5% of the purchase price. This includes fees such as title charges, appraisal cost and other associated expenses for buying a home.

Thankfully, loved ones can aid in the costly burden of closing costs by offering applicable gifts. It is possible to negotiate with the seller and request them to pay some or all of it, or even add it on your loan if your home appraises at a higher value than what’s being asked for.

Learn more about USDA Loan Down Payment and Closing Costs

Nevada closing cost assistance grants and programs

The state of Nevada offers several programs to assist homebuyers with their closing costs and other related expenses. These include grants, tax credits, and loan programs that have helped make homeownership a reality for many families.

HIP (Home is Possible)

The HIP program is a great financing option for first-time homebuyers looking to put a little money down. You may qualify if your family’s annual income is $105,000 or less, and the home you want to buy costs less than $548,250.

Home At Last Down Payment Assistance Program

With Home At Last™, Nevadans have obtained customized loan and down payment assistance options to achieve their dream of homeownership. And here’s the best part: there are absolutely no interest or payments on the assistance amount.

Learn more about Nevada Closing Cost Assistance Grants and Programs.

USDA loan limits for Nevada

The USDA loan program offers no explicit limit on the amount you can borrow. Rather, it indirectly determines your eligibility for a home based on income caps and other factors.

If you’re among the many who earn up to $103,500 yearly or around $8,625 each month in most of US states and cities, your purchasing power is naturally capped by your monthly payment, including taxes, insurance premiums, HOA fees and interest rate. These add up to determine your debt-to-income ratio (DTI).

Monthly income$8,625
Principal, Interest, tax, insurance, HOA, mortgage insurance$2,500
Front-end debt-to-income29%
Student loans, auto loans, all other payments$1,000
Back-end debt-to-income41%
Example mortgage rate6.5%*
Estimated home price based on the above$325,000

Mortgage rates, payments, and fees are for example purposes only. Your costs will vary.

See if your income qualifies.

USDA debt-to-income ratio

The USDA loan program provides a standard debt-to-income ratio of 29/41, meaning that your housing costs should not exceed 29% and all debts combined must be lower than 41% of your gross income. USDA home loan mortgage rates in Nevada

Nevada USDA mortgage rates

USDA mortgage rates are often lower than conventional and FHA loan rates because of the federal backing that comes with this program. Since lenders have less risk associated when issuing a USDA loan, they can offer more attractive interest rates for borrowers who qualify.

USDA property condition guidelines

Comparable to other government-funded home loan options such as FHA or VA, the USDA loan program requires that all dwellings financed through one of their loans abide by a set of stringent criteria in order to be qualified for financing.

To be a viable option for financing, a house must meet particular criteria such as being structurally sound and safe, efficient in energy consumption, and up to health-code standards. The most pivotal aspect is that it should have no major issues; minor repairs are acceptable.

While lenders are hard to find, it is possible to buy and fix up a home with one loan. Here is a list of USDA construction loan lenders.

Learn even more about homebuying.

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Pros and cons of a Nevada USDA loan

USDA loans offer many advantages, yet as with any financial product, there are both benefits and drawbacks to consider. Let’s delve deeper into USDA pros and cons.

While these are fantastic loans, they do come with limitations as well.

Pros

  • Lenient credit score minimum
  • Zero down payment
  • Competitive interest rates
  • Low mortgage insurance rates

Cons

  • Extra time needed to close
  • Income and geographical limits
  • Mortgage insurance is permanent
  • Only 30-year, fixed-rate loans

USDA loan vs FHA, VA, and Conventional loans

FHA loan: The FHA loan program is a great option for buyers who don’t have the savings to make a large down payment. Only 3.5% down is required and there are no income or geographic limitations.

VA loan: This offer has been tailor-made with military personnel, veterans, and their surviving spouses in mind – no need to put down any money down and there’s no official minimum credit score.

Conventional loan: Conventional loans are available for buyers with higher credit scores and more money to put down. There are no geographic or income limits for standard programs.

Loan featureUSDAFHAConventional
Income limits$103.5k-$238.2KNoneNone
Geographic restrictions?YesNoNo
Down payment0%3.5%3%
Min. credit score580-640580620
Loan limits for 1-unit homeNone$472K-$1.089M$726K-$1.089M
Upfront mortgage insurance1.0% of loan1.75% of loanNone
Monthly mortgage insurance0.35% of loan annually0.85% of loan annually0.40-3%+ of loan annually

USDA loan credit score minimum

Generally, a minimum of 620-640 is expected; however, certain lenders may still approve your application even if your credit score drops below 580 depending on individual circumstances.

USDA mortgage insurance

The USDA Loan Program offers two kinds of mortgage insurance: the one-time Upfront USDA Loan Guarantee Fee and an Annual Fee.

The Guarantee fee is 1% of the loan value.  It can be financed into the loan amount, reducing upfront cost.

The annual fee is 0.35% of the loan amount per year, or about $58 per month on a $200,000 mortgage. This is much less expensive than FHA’s mortgage insurance premium of $141 per month for the same loan amount.

See how affordable a USDA loan can be.

How are the USDA Guaranteed Loan and Direct Loan different?

There are two types of USDA home loans: Guaranteed and Direct.

The USDA loan program is tailored to individuals with moderate incomes, and approved loans are secured through regular, everyday banks and lenders.

But those who meet much more restrictive income limits may qualify to apply with the government directly. While it might sound good on the surface, expect longer wait times and more rules for the program. 

Our criteria for determining eligibility is simple:

  1. Very low: $31,550 annual income in most areas
  2. Low: $50,500 annual income in most areas

To find out more about the Direct program, visit the USDA website.

USDA lenders, the process, and how to apply

USDA loan processing involves an extra step that isn’t needed with FHA and conventional loans: Not only must the lender approve your application, but you also need to receive approval from USDA itself.

This additional measure adds time before your loan can move forward.

Conversely, it is necessary to apply with a typical bank or mortgage provider if you wish to take advantage of the Guaranteed program. This does not require applying directly with the government. Otherwise, count on the following steps in your loan process:

  1. Apply with the lender
  2. Submit all your documentation and receive a pre-approval
  3. Find and make an offer on a home, and get an accepted offer
  4. The lender orders an appraisal and finishes their approval
  5. The lender then sends the file to USDA
  6. Upon USDA approval, your lender draws final loan documents which you then sign
  7. The loan closes and you get the keys

Nevada USDA loan FAQ

How to qualify for a USDA loan in Nevada?

To qualify for a USDA loan in Nevada, you must have a credit score of at least 580-640 depending on the lender, make less than about $8,600 per month in most areas, and purchase a home in an eligible location.

What can a USDA loan in Nevada do for me?

If you’re a moderate-income family living in a rural or suburban area, the USDA Loan Program offers zero down payment, low mortgage rates, and inexpensive mortgage insurance, making homeownership more affordable.

Is it hard to get approved for USDA?

No, qualifying for a USDA loan is not difficult for those who meet qualifications. Applicants must be within income requirements, purchase a home in an eligible rural or suburban area, and have reasonable credit scores.

Become a homeowner in Nevada with a USDA loan

If you’re dreaming of being a homeowner, the goal isn’t far out of reach. A USDA loan may be the answer. With no down payment requirement and lenient credit score criteria, this program allows you to purchase a house in Nevada without the stress of saving for a down payment.

See if you qualify for a zero-down USDA loan.
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