Buying in Summerlin but worried about the down payment? You are not alone. Many first-time buyers in Clark County use state-backed help to bridge the gap between savings and closing day. In this guide, you will learn how Nevada’s main program works, who may qualify, how assistance can change your cash to close and monthly payment, and the exact steps to team up with an approved lender. Let’s dive in.
Nevada down payment assistance overview
Nevada’s flagship program is the Nevada Housing Division’s Home Is Possible program, often called HIP. These funds are designed to reduce the cash you need to bring to closing by helping with the down payment and sometimes closing costs. Assistance is typically recorded as a second lien on the home and paired with your first mortgage.
Most state assistance fits two common structures:
- Forgivable second mortgage: Zero interest or low interest, no monthly payment, and forgiven after you live in the home for a set period (often 3 to 5 years). It remains on title until forgiven.
- Deferred or repayable second mortgage: No monthly payment while you live in the home, but you repay it when you sell, refinance, or pay off the first mortgage within the set time.
Program rules change over time. Income limits, purchase price caps, credit score minimums, and eligible loan types are updated periodically. You typically need an approved program lender and an approved homebuyer education course to qualify. Always confirm current details with the Nevada Housing Division and your lender before you write an offer.
Who qualifies in Clark County
First-time, income, and price limits
Many programs focus on first-time buyers, usually defined as not owning a home in the past three years. You will need to meet Clark County income limits and purchase price caps. These limits are updated regularly, so verify current figures before you start touring homes.
Credit, property, and occupancy basics
An approved lender will underwrite your primary mortgage and check your credit score, debt-to-income ratio, and reserves if required. Properties must be your primary residence. Eligible types often include single-family homes, townhomes, and condos, though some condo projects need specific approval.
Program mechanics to know
Assistance is usually delivered as a second mortgage recorded at closing. Lenders may need to reserve funds early in the process. Some assistance is forgiven on a schedule and may include recapture rules if you sell or refinance before the forgiveness period ends. If your first mortgage has a loan-to-value above 80 percent, mortgage insurance usually still applies even when you use assistance.
Loan pairings that work
FHA loan + state assistance
This is a common pairing because FHA allows a lower down payment and flexible credit parameters. You will still have FHA mortgage insurance, both upfront and monthly.
Conventional loan + state assistance
You can often pair assistance with conventional financing. Private mortgage insurance applies when your loan-to-value is above 80 percent. Your lender can show how assistance affects PMI and your monthly payment.
VA or USDA notes
VA buyers may use assistance for closing costs even when no down payment is required. USDA can pair with assistance in eligible rural areas. Not every lender or program supports every pairing, so confirm compatibility early.
What it means for your budget
Cash to close
Your cash to close typically covers the down payment, closing costs, and prepaids for taxes and insurance. Assistance can reduce or cover the down payment and may help with some closing costs. Even with assistance, plan for remaining closing costs and initial escrow deposits, which often run 2 to 4 percent of the price. Ask your lender for a Loan Estimate showing exactly how the funds are applied.
Monthly payment impact
If assistance lowers the first mortgage amount, your principal and interest can go down. In many structures, the assistance sits as a subordinate lien without a monthly payment, so your monthly cost equals your first mortgage payment plus taxes, insurance, and any mortgage insurance. If your assistance has a payment or interest, that second payment will be part of your monthly housing cost.
Illustrative Summerlin examples
The numbers below are hypothetical to show how mechanics work. Always request a personalized Loan Estimate.
Example A: Deferred, no monthly payment
Purchase price: $600,000; assistance: 3 percent ($18,000) as a deferred second forgivable after 5 years; buyer brings $5,000 for closing costs. Cash to close focuses on closing costs. Monthly payments reflect the first mortgage plus escrow and any mortgage insurance. No second payment during the deferral period.Example B: Second with a payment
Same purchase price and assistance amount, but the second has a small interest rate and monthly payment. Your total monthly cost includes the first mortgage, the second mortgage payment, escrow, and mortgage insurance if applicable.
Compare your options the right way
Ask your lender for two Loan Estimates:
- First mortgage only.
- First mortgage with assistance.
Review the loan amount, monthly principal and interest, mortgage insurance, any second-lien payment, and a full cash-to-close breakdown.
Summerlin buyer tips
Price limits vs local prices
Summerlin offers condos, townhomes, and single-family homes across a wide range of prices. Some areas trend higher than the county average, which can bump into purchase price limits for assistance. Verify Clark County limits and consider nearby neighborhoods if your target home exceeds program caps.
HOA dues, taxes, and insurance
Many Summerlin properties have HOA dues that count toward your qualifying ratios. Clark County property taxes and homeowners insurance will be included in your escrow. Make sure your Loan Estimate reflects HOA dues, taxes, and insurance so you see the full monthly picture.
Condo approvals
If you are buying a condo, confirm that the project meets lender and program requirements. Some communities need additional review before closing.
Step-by-step to use DPA
- Check eligibility in principle. Compare your income to current Clark County limits, confirm your price range fits program caps, and verify first-time buyer status or exceptions.
- Complete homebuyer education. Take the approved class or counseling required by the program.
- Contact an approved lender. Work with a lender authorized to reserve Nevada Housing Division funds.
- Get pre-approved with scenarios. Request a Loan Estimate with and without assistance.
- Shop within program limits. Write offers on eligible properties and price points.
- Reserve funds and underwrite. Your lender reserves assistance funds if required and processes both the first loan and program conditions.
- Close and record. The assistance is recorded as a second lien at closing per program terms.
Documents checklist
- Government ID and Social Security number
- Recent pay stubs (30 days) and 2 years of W-2s/tax returns
- Bank statements and a list of debts
- Completed homebuyer education certificate
- For self-employed: profit and loss plus 2 years personal and business returns
- Letters for large deposits or recent credit inquiries
Questions to ask your lender
- Are you approved for Nevada Housing Division programs, and do you have any overlays?
- What are the current Clark County income and purchase price limits?
- Is this assistance forgivable, deferred, or repayable with a monthly payment?
- How does assistance affect my interest rate, mortgage insurance, and monthly payment?
- Exactly how much will I need at closing? Are there program fees?
- What happens if I sell or refinance before the forgiveness period ends?
Red flags to avoid
- “Zero money down” offers that hide higher rates or fees. Always compare Loan Estimates.
- Assuming funds are unlimited. Ask your lender to confirm assistance is reserved for your file.
- Ignoring HOA dues, taxes, and insurance in your monthly budget.
Your next moves
Down payment assistance can be a smart path to homeownership in Summerlin if you match the right program to the right property and lender. Confirm eligibility early, request side-by-side Loan Estimates, and keep a close eye on HOA dues, taxes, and mortgage insurance so your monthly cost stays on target. If you want a local plan tailored to your price point and neighborhood short list, connect with Dorthy Sierra to map out your next steps and meet approved lenders.
FAQs
Does Nevada DPA remove mortgage insurance for Summerlin buyers?
- Usually no. If your loan-to-value stays above 80 percent, mortgage insurance still applies on conventional loans, and FHA includes MIP.
Do I have to be a first-time buyer to use assistance in Las Vegas?
- Many programs target first-time buyers, typically defined as no ownership in the past three years, with some exceptions. Confirm current rules.
Can I use assistance to buy a resale condo in Summerlin?
- Often yes, if the price, property type, and condo project meet program and lender requirements, and you will live in the home.
Will down payment assistance increase my interest rate in Clark County?
- Assistance does not automatically change your rate, but some lenders price loans differently with subsidy programs. Compare Loan Estimates.
Is down payment assistance taxable income for Nevada buyers?
- Usually not when structured as a loan or forgivable loan, but tax situations vary. Consider speaking with a tax professional.
How do HOA dues affect qualifying for a Summerlin home with assistance?
- Lenders include HOA dues in debt-to-income ratios, which can affect your maximum price and monthly payment. Verify dues before you offer.
