Recently, a family that requested a consultation believed that they needed to prepare a 20% down payment to buy a home in Henderson. Thinking this way, they felt it would take them several more years to save the required amount, and they were considering postponing their moving plans altogether. However, after discussing it, we found that this misunderstanding stemmed from not fully understanding the structure of PMI, or private mortgage insurance.

Looking at the housing prices in Henderson, as of June 2026, the median home price in Henderson is $577,500 according to Zillow. In contrast, the median closing sale price over the last six months has been around $475,000, while the overall median in Clark County during the same period has remained at about $370,000, confirming that Henderson has a significantly higher price range than the county average.

As this family discovered, it is true that if the down payment on a conventional loan is less than 20%, PMI will be added. However, PMI is not a condition for loan rejection; it is simply an additional insurance premium added monthly, and if the credit score is above 620, it can start from as low as 3%. Moreover, as time passes and the home equity exceeds 20%, PMI can be canceled, meaning that it is not necessary to save the full 20% from the start to buy a home. I calculated how much PMI would apply with the funds they currently have and when they might be able to cancel it in a few years.

If the down payment capacity is still not sufficient, it may be worth considering FHA loans as well. With a credit score of 580 or higher, one can start with a low down payment of 3.5%, which is often used by first-time homebuyers. However, unlike PMI for conventional loans, it is important to note that if the down payment is less than 10%, MIP will remain for the duration of the loan.

In Henderson, the distance to Nellis Air Force Base is also a factor to consider. It is estimated that about 138,000 veterans reside in the Las Vegas metropolitan area, many of whom are likely in the age group considering home purchases. Active duty members, veterans, and some spouses can purchase without a down payment through VA loans, and there is no PMI burden, making it a top option for families with a history of service at Nellis Base.

Clark County is designated as a high-cost area, but as of 2026, the standard conforming loan limit of $832,750 applies, so it is not classified as a high-cost area. Since the median price in Henderson comfortably falls within this limit, there are relatively few cases where jumbo loans need to be considered. When checking school districts, it is advisable to refer to ratings from GreatSchools or Niche, but since school district boundaries change frequently, please verify the assigned school for the specific address before purchasing.

Those considering purchasing for rental income often start consultations with similar misunderstandings. While a lower down payment reduces initial capital burden, PMI can affect net yield as it is added to the monthly repayment amount. Even in popular areas like Henderson, there is no guarantee that property values will continue to rise, so it is safer to calculate various scenarios, including vacancy periods and management costs. For families relocating from other states, keep in mind that while Nevada has no state income tax, other cost structures may differ from their previous residence, so it is important to check this as well.

Ultimately, as the family experienced, there is often no need to delay homeownership due to PMI. Comparing conventional, FHA, and VA options side by side and calculating the actual total costs can be more helpful in practice. This article is not investment or legal advice, and loan terms may vary based on the lending institution and individual credit status, so it is recommended to consult with a professional before finalizing any agreements.