Nevada Mortgage Rates

Living in Nevada

When most people hear Nevada, they think Las Vegas and rightfully so, as the city brings in more than 42 million visitors a year and over half of the state’s population resides there. But Nevada offers visitors and residents more to do than try their luck at casinos. With a unique mix of urban cities, desert landscape, lakes and mountains, the Silver State provides outdoor adventures, world-class shopping and vibrant nightlife. In fact, Nevada is one of the country’s fastest-growing states.

Current home prices in Nevada are on the rise, according to the Reno/Sparks Association of REALTORS. The median sales price for an existing single-family home in the Reno-Sparks region was $390,000 in May, a 4% increase from April and also a 4% increase from last year. In the Sierra Nevada region, the median price for a single-family home in May was $350,000, also representing an increase in recent months. Currently, sellers in the Reno-Sparks region are receiving close to list prices — 98.8% on average.

Inventory levels have decreased steadily from January of this year in the Reno-Sparks region. Current levels represent only a 1.8 month’s supply of properties. With these conditions, buyers should plan to move quickly on their purchasing decisions. In May, properties sold in 37 days on average in the Reno-Sparks area and 49 days in the Sierra Nevada region.

The rules and costs of buying a home in Nevada

Purchasing a home involves many moving parts which can vary from state to state. Here’s what you need to know about buying a home in Nevada:

Home seller and buyer laws

Sellers in Nevada are required by law to disclose in writing all conditions in the home that negatively affect the property’s value. The Nevada Real Estate Division provides aSeller’s Real Property Disclosure Formthat covers all areas of the property, including the foundation, electrical systems, plumbing and the presence of environmental hazards. The form gives sellers room to fully explain any issues disclosed and encourages them to attach additional pages.

Sellers or their agent must provide the disclosure statement no later than 10 days before closing or buyers have the right to withdraw the offer without penalty. Additionally, sellers must reveal any defects that arise in the home after providing the statement or if a previously disclosed condition worsens.

Should you have difficulty staying current on yourmortgage, know that Nevada permits two types of foreclosure processes: judicial, which requires a lender to take you to court, and nonjudicial, which does not involve the courts.

In Nevada, which has one of the country’s highest foreclosure rates, most foreclosures are nonjudicial. Although the process does not involve the court system, it does require a series of predetermined steps before your home is foreclosed.

Nevada is one of only nine community property states in the country, which means spouses evenly own assets and debts acquired during the marriage. When couples divorce in Nevada, property and liabilities such as bank accounts, business debt, cars, household items and more are split evenly unless a marriage contract is in place. This is important to keep in mind as some government loan programs consider the debt of both spouses in a divorce situation even if only one spouse will own the home.

In Nevada, buyers are not required to hire an attorney to assist with the home closing process, as is the case in some states. Buyers work with an escrow holder to process their closing, which can be an escrow company, title company, attorney or bank.

Taxes

All home sales in Nevada incur a real estate transfer tax payable to the county recorder in the county where the property is located. The amount of the tax is based on the value of the home, typically $1.95 for each $500. The rate is higher in Washoe, Churchill and Clark counties. Your lender will let you know the exact amount you will need to pay as you near your closing date.

Once you purchase your home, you will owe property taxes in Nevada. The median property tax in Nevada is $1,749 per year for a home worth the median value of $207,600,according to Tax-Rates.org.The state ranks 24th in order of average property taxes received. Tax rates also vary from county to county. For example, residents in Washoe County pay the most in the state — $1,889 on average — while Esmeralda County homeowners pay the least — $414 on average. Check with the tax assessor in your county to get an idea of what your taxes will be.

Nevada does offer relief programs to help ease the tax burden that homeowners face. Assistance includes exemptions for eligible veterans, surviving spouses and blind homeowners and tax abatements (reduction of tax liability) for eligible homeowners who reside in their home as their primary residence. Relief is granted on the county level, socheck with the tax assessorin the county where your property is located for more information.

Conforming loan limits

The conforming loan limit for one-unit properties in Nevada is $484,350. This amount represents the maximum amount you’ll be able to finance with a conventional mortgage ensured byFannie Mae or Freddie Mac, the government-sponsored companies that back most conventional loans. If you are looking to borrow above the conforming loan limit, you’ll have to take out ajumbo loan, which typically has a higher interest rate and stricter lending requirements.

Programs for homebuyers in Nevada

Multiple agencies in Nevada offer assistance to help make homeownership affordable, ranging from low-interest financing to federal tax credits. Some programs are available statewide while others are specific to location. We’ve highlighted a few programs below, but more homeownership assistance may be available to you.

Home At Last Down Payment Assistance

The Nevada Rural Housing Authority (NRHA) offers financing combined with down payment assistance to Nevadans who live in designated rural locations.

  • 30-year fixed-rate conventional, FHA, VA or USDA loan
  • Down payment assistance up to $24,000 in the form of a 0% interest, no-payment second mortgage forgiven after 3 years
  • A bonus grant between $1,500 to $2,500 may be available to eligible buyers who finance with a conventional loan
  • Costs associated with the program may include a $400 funding fee, $275 administration fee and additional charges that may be offset by the down payment assistance

Who qualifies

  • Buyers purchasing in designated rural locations
  • Household income limit of $116,000 for FHA, VA or USDA loans and $135,000 for conventional loans
  • Minimum credit score of 640
  • Debt-to-income ratio must be 50% or less
  • Home must be your primary residence
  • Borrowers must take a homebuyer education course
  • Other eligibility requirements may apply

Learn More

Home At Last Mortgage Credit Certificate

Buyers who purchase a home with one of the NRHA programs can also apply for a federal income tax credit paid annually for the life of the loan.

  • Annual federal income tax credit based on the mortgage interest paid
  • Can be combined with down payment assistance
  • Borrowers may choose to receive the credit annually when they file their taxes or may receive it throughout the year by adjusting their tax withholding and increasing their take-home pay
  • Costs associated with the program may include a $795 program fee and $300 application fee, which may be offset by the down payment assistance if applying to both programs.

Who qualifies

  • First-time homebuyers(those who have not owned a home in the past 3 years) and qualified veterans
  • Household income limits range between $69,700 and $110,860 depending on county and family size
  • Purchase price must be within program limits, which range between $283,348 and $380,886, depending on county
  • Buyers must claim the credit at the time of home purchase
  • Borrowers must take a homebuyer education course

Learn More

Home Is Possible

Offered by the Nevada Housing Division, this statewide program provides first mortgage financing along with closing costs and down payment assistance.

  • 30-year fixed-rate conventional, FHA, VA, or USDA loan
  • Down payment and closing costs assistance up to 5% of the loan value in the form of a 0% interest, no-payment second mortgage forgiven after 3 years
  • One-time program fee of $675

Who qualifies

  • Household income must be less than program limits, which range from $70,100 to $98,500, depending on county and loan type
  • Purchase price must be below $484,350
  • Minimum credit score of 640
  • Home must be your primary residence
  • Buyers may not own any other property at the time of closing
  • Borrowers must take a homebuyer education course
  • Additional eligibility requirements may apply
  • Veterans and teachers may qualify separately under theHome is Possible for HeroesandHome is Possible for Teachersprograms, respectively

Learn More

Rate shopping tips

Don’t leave getting the lowest rate on your mortgage to chance. Just a small difference in interest rate can either save or cost you thousands over the life of your loan. These tips will help youget the best rate on your loan.

Contact at least 3 lenders on the same day

Since rates change from day to day, get your quotes all at once so you can make apples-to-apples comparisons. Consider reaching out to multiple types of lenders such as national banks, credit unions, community banks or online lenders to see who has the most competitive rates.

Give each lender the same information

Another way to ensure you can make accurate comparisons between the quotes you receive is to give each lender the same information upfront. Interest rate quotes are subject to change based on your situation, so it’s best to avoid a rate increase.

Add up all the lender fees to confirm the costs

The interest rate on your mortgage does not give you the complete picture of what it costs to finance your home, so look at the annual percentage rate (APR) on all quotes to see the total cost of each loan. Also, look at any costs not included in the APR, such as the appraisal fee and credit report fee.

Know when to lock in the rate

Most lenders permit you tolock in your interest rateto protect you against an increase. Find out from your lender what the procedure is and keep communication open with your loan officer to get an idea of the current direction of rates.

The information in this article is accurate as of the date of publishing.