Lenders consistently report that the 20% down payment myth is the first barrier they help homebuyers overcome. The reality? Multiple loan programs exist that require little to nothing down.
Zero-Down Programs
The Department of Veterans Affairs guarantees zero-down VA mortgages for qualified borrowers. This includes veterans, active-duty service members, and certain members of the National Guard and Reserves. If you served, you likely qualify. The catch? Many veterans don’t realize they’re eligible or don’t understand the benefit still applies decades after service.
The U.S. Department of Agriculture guarantees zero-down mortgages through its Rural Development Program. These loans work in eligible areas, which includes mostly rural locations but also some suburban zones. Yes, even near Las Vegas.
Navy Federal Credit Union offers zero-down mortgages for qualified members buying primary residences.
Low Down Payment Options
FHA loans allow down payments as small as 3.5%. Some lenders offer conventional mortgages with down payments of just 3%, though you’ll pay private mortgage insurance.
The key? Stop waiting to save 20% if you’re otherwise ready to buy. That’s time you could be building equity instead of paying rent. Work with someone who knows the Las Vegas market. Aaron Taylor “The Real Estate Guy” maintains relationships with local lenders who understand these programs and can match you with the right option.
FHA Loans Work with Less-Than-Perfect Credit
Life happens. Medical bills, divorce, job loss. Your credit score at 50 or 60 might not reflect who you are today.
FHA loans exist for exactly this situation. In 2016, the average credit score for an FHA homebuyer was around 686. Compare that to conventional homebuyers, who averaged around 753.
You need a credit score of 580 or higher to get an FHA mortgage with a down payment as low as 3.5%. If your credit score sits between 500 and 579, you’ll need to make a down payment of at least 10%. The bigger challenge at that level? Finding a lender willing to approve the loan.
FHA loans open doors for buyers rebuilding after financial setbacks. If you’ve spent the last few years repairing credit after a rough patch, FHA financing might be your path to homeownership.
Lenders Want You to Keep Money in the Bank
Here’s something that surprises first-time buyers: lenders don’t want you to drain your savings on the down payment and closing costs.
They require “reserves.” These are cash or assets you can sell quickly. The point? You need money to handle unexpected expenses without missing house payments. At 50+, this matters even more. A broken HVAC system, a roof leak, or a medical emergency can’t derail your housing stability.
Your lender calculates the minimum reserves you’ll need to qualify. Sometimes this creates an unexpected situation. You planned to put 20% down to avoid mortgage insurance, but reserve requirements mean you can’t. You’ll have to make a smaller down payment, which triggers the need for mortgage insurance.
Lenders would rather see you carry mortgage insurance and maintain an emergency fund than stretch yourself too thin. That’s not just policy. It’s smart risk management for both you and them.
Think about it. You’re closer to retirement than you were a decade ago. Fixed incomes don’t absorb financial shocks the way a growing salary does. The emergency fund isn’t optional anymore.
Refinancing Still Makes Sense in 2026
Mortgage rates in 2026 sit higher than the historic lows of recent years. Does that mean refinancing is off the table? Not at all.
Several situations justify refinancing even when rates have risen:
Divorce often requires one spouse to buy out the other’s equity. That means refinancing.
Your credit score might have recovered from a low point years ago. Refinancing at your current, better score could save money despite higher market rates.
Getting rid of mortgage insurance becomes possible once you reach 20% equity. The monthly savings might justify a refi.
You finally have positive equity after being underwater.
You need to cash out some equity for major expenses like aging-in-place modifications.
The 15-Year Mortgage Strategy
Refinancing into a 15-year mortgage saves money two ways. First, 15-year mortgages typically carry lower interest rates than 30-year loans. Second, you pay interest over a shorter period.
Yes, monthly payments on a 15-year mortgage run higher than a 30-year loan. But total interest paid over the life of the loan is substantially less. If you’re in your 50s and want the house paid off before retirement, this path makes sense. Run the numbers based on your specific situation.
Borrow What You Can Actually Afford
When people buy homes, they often “stretch” to make the initial monthly payments. The theory goes that incomes will rise over time, making house payments easier to cover.
That theory breaks down when you’re 50+.
You might be approaching retirement. You might already be on a fixed income. You have less flexibility than younger buyers betting on career growth. Living within your means isn’t just good advice. It’s survival strategy.
A conservative rule of thumb: all your monthly debt obligations shouldn’t exceed 36% of your gross income. That includes the house payment, car payments, student loans, credit cards, child support, and anything else you owe monthly.
Say your household income is $5,000 a month. Your total debt obligations shouldn’t exceed $1,800, or 36% of that $5,000.
Now, if you have a high credit score and plenty of money in the bank after closing, the lender will approve a higher house payment. They’ll let you accept debt obligations well above 36% of gross income.
But approval doesn’t equal wisdom.
If your debt obligations hit 45% or 50% of gross income, you won’t have much money left for fun, savings, healthcare, or unexpected expenses. In Las Vegas, factor in utilities during brutal summers, HOA fees, and property taxes. The difference between what a lender approves and what you can comfortably afford matters more at this stage of life.
No-Closing-Cost Mortgages Have Their Place
A typical mortgage comes with thousands of dollars in mortgage fees and closing costs. Pay those fees out of pocket and you’ll get the lowest interest rate you’re eligible for. But you might want to accept a higher interest rate in exchange for the lender paying some or all of the closing costs.
Example: you might be offered an interest rate of 3.75% if you pay all the closing costs, or a rate of 4.125% if the lender pays the closing costs.
Who benefits from no-closing-cost mortgages? Generally, people who plan to sell within five years or so. If you plan to stay longer than five or six years, your total costs will be lower if you pay the closing costs out of pocket.
It’s a balancing act. Paying the closing costs could push you into making a smaller down payment, potentially forcing you to pay for mortgage insurance. Calculate the total cost over your expected ownership timeline before deciding.
VA Loans Remain Underused (Even by Veterans)
We mentioned VA loans earlier, but this deserves its own section. These loans are underutilized even though they’re popular.
In 2016, approximately one-eighth of mortgages were guaranteed by the VA. But a 2010 survey found that many homebuying veterans weren’t aware of the VA loan benefit or didn’t know much about it. About a quarter of active-duty military personnel weren’t aware they were eligible for VA loans.
Maybe those active-duty personnel believed the VA loan benefit was available only to retirees or veterans who have been discharged. That’s wrong.
VA loans are available to honorably discharged veterans, those on active duty, and those who have completed at least six years of service in the National Guard or Selected Reserve units. Certain surviving spouses of veterans are eligible too.
The primary feature? You can buy a primary home without a down payment.
Las Vegas has a substantial veteran population. Many military retirees choose Vegas for the cost of living, weather, and quality of life. If you served, check your eligibility. You might have access to financing you didn’t realize was available.
Cash-Out Refinancing Returns as Home Values Recover
A cash-out refinance happens when you refinance the mortgage for more than the amount owed. You pocket the difference.
Cash-out refinances were popular during the real estate boom of the early 2000s. They almost disappeared after the housing bust wiped out billions of dollars in home equity. Now that home values have climbed near their pre-recession peaks in many markets, cash-out refinances have returned.
The other way to extract cash from equity? A home equity loan or line of credit.
Which makes sense? If you want to spend the money on something short-term (a vacation, a wedding, a car), get the money through a home equity loan or line of credit. But if the purpose is long-term (building an addition, making aging-in-place modifications, major repairs that add value), a cash-out refi might make more sense.
Las Vegas home values have recovered significantly. If you bought during or after the recession, you might be sitting on substantial equity. Understanding how to access that equity strategically matters, especially if you’re planning modifications to age in place.
You Can Refinance Into a VA Loan
If you’re eligible for a VA-guaranteed mortgage, you might be able to refinance from a conventional mortgage or an FHA mortgage into a VA loan.
In many cases, you can refinance for up to 100% of the home’s current value. This means you can do a cash-out refinance using a VA loan. Funding fees for cash-out VA refinances vary from 2.15% to 3.3%, and the fee can be added to the loan balance.
This matters if you started with a conventional or FHA loan years ago but you’re eligible for VA benefits. You can switch. The VA loan might offer better terms or more flexibility for your current needs.
Stay Disciplined During the Underwriting Process
Keep your finances as boring and steady as possible between the time you apply for a mortgage and the time you close on the loan.
That sounds simple in theory. In practice, especially for first-time homebuyers, it’s harder than it looks.
Don’t charge up your credit cards. Don’t apply for new credit while the mortgage is going through underwriting. No furniture shopping on credit. No new car loans. No major purchases.
When you apply for the mortgage, the lender looks at your credit report and credit score. Then, shortly before closing, the lender surveys your credit again.
If there’s a substantial change? Say you maxed out credit cards to buy furniture and appliances, or you got a loan to buy a car? The lender might have to delay your mortgage closing. In drastic cases, you could torpedo your mortgage and have to apply all over again.
This is especially tough for first-time buyers who’ve never owned furniture or appliances and are excited about their new home. Wait. Close first. Shop after.
Frequently Asked Questions
Can I really buy a home in Las Vegas with no money down?
Yes, if you qualify for VA, USDA, or Navy Federal Credit Union loans. VA loans serve veterans, active-duty service members, and certain National Guard and Reserve members. USDA loans work in eligible rural and some suburban areas. These programs eliminate the down payment barrier entirely.
What credit score do I need to buy a home at age 50 or older?
The minimum credit score depends on your loan type. FHA loans accept scores as low as 580 for 3.5% down, or 500-579 for 10% down. Conventional loans typically require 620 or higher. Your age doesn’t affect credit requirements, but many buyers in their 50s have had more time to build strong credit or to recover from past financial challenges.
Should I refinance in 2026 even though rates are higher than a few years ago?
Possibly. Refinancing makes sense if you’re eliminating mortgage insurance, recovering from a low credit score, going through divorce, cashing out equity for major expenses, or switching to a 15-year term to pay off the house before retirement. The decision depends on your specific situation, not just market rates.
How much house payment can I afford on a fixed income?
A conservative guideline says total monthly debt obligations (including your mortgage) shouldn’t exceed 36% of gross income. Calculate all debts: house payment, car payments, credit cards, student loans, child support. If your total debt hits 45% or 50% of income, you’ll have little left for savings, healthcare, and discretionary spending.
What’s the difference between a cash-out refinance and a home equity loan?
A cash-out refinance replaces your existing mortgage with a larger loan and you pocket the difference. A home equity loan or line of credit is a second loan against your equity. Cash-out refis make sense for long-term needs like home improvements. Home equity products work better for short-term needs like medical bills or temporary cash flow gaps.
Do I still qualify for VA loan benefits if I separated from the military 20 years ago?
Yes, if you were honorably discharged. VA loan eligibility doesn’t expire. Many veterans don’t realize this benefit remains available decades after service. You can use it to buy a primary residence with zero down payment, or to refinance an existing conventional or FHA loan into a VA loan.
Should I choose a no-closing-cost mortgage or pay the costs upfront?
It depends on how long you plan to own the home. No-closing-cost mortgages come with higher interest rates. If you’ll sell within five years, the higher rate might cost less than paying thousands upfront. If you’ll stay six years or longer, paying closing costs upfront typically costs less over time.
Can I use my retirement savings for a down payment without penalty?
Some retirement accounts allow penalty-free withdrawals for first-time home purchases, though you’ll still owe income tax. But consider whether depleting retirement savings makes sense at 50+. You have less time to rebuild those accounts. Lenders want you to maintain reserves, which means keeping some savings even after closing.
What happens if my credit changes between application and closing?
The lender reviews your credit shortly before closing. If you’ve maxed out credit cards, opened new accounts, or taken on new debt, they might delay closing or reject the loan entirely. Keep your finances stable during underwriting. Make no major purchases, open no new credit accounts, and maintain your income stability.
Is it better to sell first or buy first when moving to a different home in Las Vegas?
This depends on your financial situation and local market conditions. Selling first gives you certainty about available funds but might require temporary housing. Buying first requires bridge financing or contingent offers. Work with Aaron Taylor “The Real Estate Guy” to evaluate Las Vegas market timing and your specific circumstances.
Key Takeaways
- Multiple zero-down and low-down payment programs exist (VA, USDA, Navy Federal, FHA with 3.5%, conventional with 3%)
- FHA loans accept credit scores as low as 580, opening homeownership to buyers rebuilding credit
- Lenders require cash reserves beyond your down payment to protect you from unexpected expenses
- Refinancing makes sense in multiple situations even when market rates are higher than historical lows
- The 36% debt-to-income guideline helps ensure you can afford payments on a fixed or retiring income
- No-closing-cost mortgages benefit buyers planning to sell within five years
- VA loan benefits remain available to veterans decades after service, including zero-down purchases and cash-out refinancing
- Cash-out refinancing and home equity products serve different purposes based on short-term vs. long-term needs
- Keep finances completely stable during underwriting—no new credit, no major purchases, no job changes
- Work with local experts like Aaron Taylor who understand Las Vegas market conditions and maintain lender relationships
