Most people come to me with a number in their head. Sometimes it’s too low — they’ve talked themselves out of the market before we even start. Sometimes it’s way too high — they’ve been watching Zillow without understanding how lenders actually calculate affordability.
This chapter is about getting you to a real number. Not a hope. Not a guess. An actual, defensible, lender-approved number you can walk into this market with.
How Lenders Think About What You Can Afford
Lenders don’t care what you think you can afford. They care about one thing: your debt-to-income ratio, or DTI.
DTI is simple. Add up all your monthly debt payments — car loan, student loans, credit card minimums, any other loans. Divide that by your gross monthly income (before taxes). That’s your DTI.
Example: You earn $6,000/month gross. You have a $400 car payment and $200 in student loans. Your DTI is $600 ÷ $6,000 = 10%. That’s great.
Most lenders want your total DTI — including your new mortgage payment — to stay below 43–45%. Some programs allow up to 50% with strong compensating factors like a high credit score or large down payment.
Here’s the practical math: Take your gross monthly income, multiply by 0.43, then subtract your existing monthly debts. That’s roughly the maximum monthly mortgage payment you can qualify for.
What Does a Mortgage Payment Actually Look Like in Las Vegas?
At current market rates, here’s a rough guide to what different home prices cost per month (principal, interest, taxes, insurance, and a typical HOA):
- $250,000 home — roughly $1,800–$2,100/month
- $300,000 home — roughly $2,100–$2,500/month
- $350,000 home — roughly $2,500–$2,900/month
- $400,000 home — roughly $2,850–$3,300/month
These are estimates. Your actual payment depends on your down payment, credit score, loan type, and current interest rates. But this gives you a real ballpark.
Down Payment Options — It’s Not All 20%
I hear this constantly: “I don’t have 20% down so I can’t buy.” That’s one of the biggest myths in real estate and it stops good buyers cold.
Here are your actual options:
- FHA loan: 3.5% down minimum with a 580+ credit score. On a $300,000 home that’s $10,500.
- Conventional loan: 3% down with strong credit. On a $300,000 home that’s $9,000.
- VA loan: 0% down if you’re a qualifying veteran or active service member. Zero.
- USDA loan: 0% down for qualifying rural/suburban areas — some parts of the Las Vegas Valley qualify
- Nevada Housing Division programs: down payment assistance specifically for Nevada first-time buyers — up to 5% of the loan amount in some cases
Important: If you put less than 20% down on a conventional loan, you’ll pay PMI (private mortgage insurance) — usually $50–$200/month. FHA has its own mortgage insurance. This adds to your monthly payment but it’s not a dealbreaker — it goes away eventually.
Nevada Down Payment Assistance Programs
This is the part most buyers never hear about. The Nevada Housing Division offers programs that can cover part or all of your down payment. These are not grants you have to pay back in some cases, or they’re second mortgages at very low rates.
Eligibility requirements change, but generally you need to:
- Be a first-time buyer (haven’t owned a home in the last 3 years)
- Meet income limits based on household size and county
- Complete a homebuyer education course
- Use the home as your primary residence
I work with buyers who use these programs regularly. It’s not charity — it’s a resource that exists specifically to help people like you get into a home. We’d be fools not to use it.
The Number You Actually Need to Start
Here’s what I tell every buyer who’s on the fence about whether they have enough:
If you have $5,000–$10,000 saved and a 580+ credit score, there is a path to homeownership in Las Vegas. It might not be your dream home. It might not be in Summerlin. But there is a path, and walking that path for 3–5 years puts you in a dramatically better financial position.
If you have $15,000–$30,000 saved and a 640+ credit score, you have real options across the valley with minimal concessions.
If you have $30,000+ and a 680+ score, you’re in a strong position and we can be strategic about where and what you buy.
Stop guessing. Take the quiz, find your real number, and let’s have an actual conversation about what’s possible for you specifically.