Best Mortgage Lenders for First Time Home Buyers in Nevada

Are you thinking about buying a home in Nevada this year? You might feel like you have a lot to learn before you take the plunge. Understanding mortgage rates is a good way to decide on a mortgage lender.

We'll walk you through everything you need to know about mortgage rates so you find the best mortgage company.

Best Mortgage Lenders for a First Time Home Buyer in Nevada:

• Best for Bank Statement Loans: Angel Oak Mortgage Solutions
• Best Overall in Nevada: Quicken Loans®
• Best for Online Experience: guaranteed Rate
• Best for In-Person Experience: Bank of America
• Best for VA Loans: Veterans United

What is a Mortgage Rate?

The term “mortgage rate” refers to the interest rate on your home loan. You'll pay back this rate on top of the home loan amount you’ve borrowed. Lower mortgage rates can save you thousands of dollars over the lifetime of your loan. 

How do you lock in the best rate? There are a lot of factors involved — we’ll break them down for you.

What Factors Impact Your Mortgage Rate?

There are a lot of factors that go into determining your individual mortgage rate. Understanding these factors can help prepare you, whether your rate is high or low. It can also allow you to make improvements to get a better rate.

• Credit score: This is the number one factor all lenders look at when to determine your mortgage rate. In general, the higher your score, the lower your mortgage rate. If your credit score is low, work on improving it before applying for financing.
• Loan-to-value ratio (LTV): LTV is another important factor that lenders look at when they set your rate. This is the amount of money you borrow versus your home's full value.

Let's say your home costs $200,000 and you put down $10,000. You’ll need financing for the remaining $190,000. Your LTV would divide the amount financed ($190,000) by the home cost/value ($200,000). In this case, your LTV would be 0.95, or 95%.

The lower your LTV percentage, the lower your mortgage rate. Some lenders even have LTV rate requirements. If you can afford a larger down payment, your rate will decrease.

• Home location: Where you buy in Nevada can determine your mortgage rate and local markets vary from city to city. If your local market is strong, you might be able to lock in better rates than if the market is weak.
• Lender: Your lender also plays a role in setting rates. Some lenders might have low eligibility requirements but high rates to protect them from loan defaults.
• Mortgage type and term: The type of mortgage you choose will impact your rate. Your mortgage term, or the length of your home loan, will also affect your rate.

Let’s review some typical mortgage types to give you a better idea of how they can impact your rate.

What is a Mortgage Type?

There are a lot of different mortgage types to choose from when financing your Nevada home. Let’s take a closer look at the 4 most common mortgage options: conventional, FHA, USDA and VA mortgages.

Conventional Loans

Conventional home loans are not secured by the government and often have higher interest rates. Your individual mortgage rate depends on your credit score and LTV. Despite high rates, these loans can often have more flexible approval requirements.

You’ll need to buy private mortgage insurance if you put less than 20% down on your home. This protects the lender if you default on your mortgage.

FHA Loans

You can get an FHA home loan through the Federal Housing Administration. They're a great option for first time homebuyers. They’re considered less risky because they're backed by the government. They also have lower-than-market interest rates.

Other benefits of FHA home loans are low credit requirements (scores between 580 – 620) and low down payment options (3.5%).

USDA Loans

The United States Department of Agriculture backs USDA home loans in rural areas. Most homes in Nevada located outside of major cities will qualify for a USDA loan. USDA loans also offer lower-than-market interest rates.

Other benefits of USDA home loans are:

• Flexible credit requirements (alternative history considered)
• Zero down payment options
• Low mortgage insurance rates

VA Loans

The United States Department of Veterans Affairs funds VA loans. They're for current and former military members and their families.

You'll get flexible credit requirements, zero down payment options and no mortgage insurance requirements. Be prepared to pay an origination fee for loan processing — about 1% of your loan’s value.

What is a Mortgage Term?

Your mortgage term, or length of your home loan, also impacts your interest rate. Let’s look at a few common mortgage terms to understand how it might impact your rate.

30-Year Fixed

A 30-year fixed mortgage is a home loan where you’ll pay a set amount monthly for 30 years. It’s the most common mortgage term. As a result, you’ll likely pay low monthly payments at a higher interest rate. While this option is more affordable month-to-month, you’ll pay more interest over time.

15-Year Fixed

A 15-year fixed mortgage is the same as above, except the duration of time is 15 years shorter. This means your monthly payments will be higher and you’ll often lock in a lower rate. You’ll pay the least amount of interest with this type of loan.

5/1 Adjustable Rate

An adjustable-rate mortgage (ARM) is a mortgage without a set rate. A 5/1 ARM locks in an introductory rate that’s usually low for 5 years. After 5 years, your rate fluctuates based on the housing market. 

An ARM might make sense for you if you plan to sell your home after 5 years or want to make more money after your introductory period.

Current Mortgage Rates in Nevada

Curious about the average mortgage rates in the Sagebrush State? Benzinga is frequently reviewing local mortgage data to bring you the most updated rate information. Use this table to help you get an average expectation for current mortgage rates.

Calculating Interest in Nevada

Your home’s interest rate will vary depending on the area of Nevada you call home. We’ve compiled average home values and mortgage rates to give you a better idea of how much interest you might pay.

Lender Credit Score Minimums in Nevada

Your credit score is an important factor in determining your mortgage rate. We’ve listed some of the top lenders in Nevada to help you get a better sense of their credit score requirements.

5 Best Mortgage Lenders in Nevada

We’ve grouped 6 of the most popular mortgage lenders into categories to help you find the lender that offers the incentives you’re seeking.

1. Best for Bank Statement Loans: Angel Oak Mortgage Solutions

Angel Oak Mortgage Solutions is a full-service mortgage lender offering traditional and portfolio mortgage loans. Among their many customized loan solutions is their Bank Statement product for self-employed borrowers in Nevada. This loan does not require tax returns and includes a 1099 Income option for 1099 earners. 

• Loan amounts up to $3 million
• 12 or 24 months personal or business bank statements
• Two years out of bankruptcy, short sale, foreclosure, or deed-in-lieu
• Owner occupied, non-owner occupied, second homes located in Nevada
• 1099 option available
• 40-year fixed interest only
• Delayed financing available
• Non-warrantable condos allowed

Angel Oak Mortgage Solutions offers a wide range of loan options allowing you to obtain any mortgage as long as qualification requirements are met. Nevada residents can also refinance into any of these loans. The customer service team is easy to reach via email, phone or the online contact form, and you can begin your journey by searching for a local advisor right on the website.

Angel Oak is headquartered in Atlanta, Georgia and is licensed in AL, AZ #0927070, licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, CO, CT, DE, DC, FL, GA #32379, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, NV, NH, licensed by the N.J. Department of Banking and Insurance, NM, NC, OH, OK, OR, PA, Rhode Island Licensed Lender, SC, TN, TX, UT, VT, VA, WA dba AOHL LLC, WI.

Quicken Loans® is one of the top mortgage lenders in the country, and for good reason.

It offers a streamlined application process for income requirements and other financial paperwork. It also offers 24/7 customer service and conventional, FHA, USDA and VA loans. 

3. Best for Online Experience: guaranteed Rate

guaranteed Rate can help you find the right mortgage type and apply online.

Have questions? The company offers top-notch customer service. guaranteed Rate offers conventional, FHA, USDA and VA loans.

Credit score requirement: 620

4. Best for In-Person Experience: Bank of America

Do you prefer a traditional mortgage lender that you can sit down with? Consider Bank of America. Bank of America offers online and in-person mortgage options to guide you.

Existing Bank of America customers may also receive rate discounts. Bank of America offers conventional, FHA and VA loans. 

Credit score requirement: 620

Get a fast refinance quote or purchase quote for your Nevada home.

5. Best for VA Loans: Veterans United

If you’ve logged some time in the military, Veterans United’s loans will likely be the best deal. Unlike other veteran-marketed loan programs, Veterans United only accepts active duty and veteran military members.

In addition to no-down-payment loans, you’ll also eliminate the private mortgage insurance you’ll have to pay with other mortgages.

Veterans United is also more forgiving of lower credit scores. Interest rates are lower than average.

Key Considerations

It’s important to understand that mortgage rates and what they mean. Low rates can save you tens of thousands in interest. Look at your financial budget to determine which mortgage incentives are important.

A higher down payment to secure a lower rate may not make sense if you can’t afford to part with this large sum of money.