Violet closed on her $198,500 Las Vegas home in September 2022 and owed exactly $0 at the closing table. Her $2,000 earnest money deposit came back to her in full. The National Association of Realtors reports that the typical first-time buyer in 2024 put down 9% of the purchase price, or roughly $17,865 on a comparable home. Violet paid none of that. This article shows exactly how she did it, step by step.
Key Takeaways
- Violet, a 23-year-old buyer with a ~660 credit score, purchased a $198,500 Las Vegas home in September 2022 with $0 due at closing
- Nevada’s Home Is Possible (HIP) program covered her down payment through a low-interest second mortgage
- A negotiated $7,700 seller concession covered the closing cost gap
- Her $2,000 earnest money deposit was fully refunded at closing because nothing remained due
- NAR data shows 38% of non-homeowners cite saving for a down payment as the #1 barrier to buying (NAR, 2024 Profile of Home Buyers and Sellers)
Nevada’s Home Is Possible Program Provides 3-6% Down Payment Assistance Statewide
Nevada’s Home Is Possible (HIP) program gives qualifying buyers 3-6% of the loan amount as down payment assistance through a second mortgage at a competitive fixed rate. The Nevada Housing Division makes HIP available with FHA, VA, USDA, and conventional loans across all Nevada counties. Clark County income limits reach $105,000 annually, and no first-time buyer status is required to qualify.
The Nevada Housing Division administers Home Is Possible as a second mortgage tied to the primary loan. Buyers must complete a HUD-approved homebuyer education course before closing. The DPA does not need to be repaid as a forgivable grant if the borrower remains in the home for the required period. Current income tables, purchase price caps, and participating lender lists are posted at HomeIsPossibleNV.org.
Violet’s $0 Closing Proves What a Well-Structured DPA Transaction Can Achieve
Violet purchased for $198,500 with a credit score around 660 and stable W-2 employment. NAR’s 2024 data shows the typical first-time buyer put 9% down, or roughly $17,865 on a comparable purchase. By combining the HIP second mortgage with a $7,700 seller concession, Violet eliminated every dollar she would otherwise have owed at closing and walked away with $2,000 cash back.
NAR’s 2024 Profile of Home Buyers and Sellers found that first-time buyers represented only 24% of all purchases, the lowest share in NAR survey history. The leading obstacle: 38% of non-owner households cited saving for a down payment as their primary barrier. Programs like Home Is Possible address this directly by converting the lump-sum down payment requirement into a structured second mortgage. (Source: NAR.realtor)
Choosing a HIP-Approved Lender Is the Step Most Buyers Miss Before Searching
Not every Nevada lender participates in Home Is Possible. The Nevada Housing Division maintains a list of approved lenders trained in HIP guidelines, and pairing with a non-participating lender means buyers miss the DPA entirely. Violet worked with a HIP-approved loan officer who structured her FHA primary loan and the second mortgage simultaneously, securing pre-approval before any house hunting began.
Pre-approval with a HIP-approved lender establishes the maximum purchase price, confirms DPA eligibility, and reveals the exact monthly payment the buyer will carry, including the second mortgage. This sequence matters because it prevents buyers from falling in love with a property outside the program limits and then discovering they cannot qualify.
For a detailed look at what lenders evaluate during this process, the credit score requirements guide for buying a house in 2026 and the complete down payment FAQ for homebuyers break down each qualifying factor.
HUD.gov establishes that FHA loans require a minimum 3.5% down payment for borrowers with credit scores of 580 or higher. Home Is Possible’s second mortgage is specifically designed to cover that 3.5% requirement, replacing the buyer’s out-of-pocket contribution entirely while the primary FHA loan finances the remaining purchase price.
Property Selection Determines Whether Seller Concessions Are Realistically Achievable
HUD permits sellers to contribute up to 6% of the purchase price toward buyer closing costs on FHA loans. Violet’s $7,700 request on a $198,500 purchase represented approximately 3.9%, within program limits. However, achieving that concession required targeting a property where the seller had motivation to close rather than waiting for a higher offer from a cash buyer or a buyer without concession needs.
Violet focused on a home that was move-in ready but lacked premium kitchen finishes and high-end upgrades. Properties in that condition tend to attract fewer competing offers, which shifts negotiating leverage toward the buyer. Highly upgraded homes in active price ranges almost never yield 4% in seller concessions because sellers have enough buyer interest to hold firm on net price.
This property selection principle is a core part of how down payment assistance programs function in practice. DPA covers the down payment, but the closing cost gap still needs to close through either seller contributions, lender credits, or buyer funds. When you can negotiate the seller concession, the closing cost gap disappears.
Understanding which fees appear at closing and which fall outside escrow is also essential. The guide to what home buyers must prepare for in hidden costs and the Las Vegas closing costs breakdown for 2026 cover the full fee landscape buyers face.
The Final Settlement Statement Showed $0 Due and $2,000 Refunded
At the closing table in September 2022, Violet’s certified final settlement statement confirmed two numbers: $0 due from the buyer, and $2,000 returned to Violet. That outcome was not luck. It was the result of structuring the transaction correctly from the pre-approval stage forward.
The $2,000 earnest money refund works as follows: an earnest money deposit appears as a credit on the settlement statement. When the combination of seller concessions and DPA covers all closing costs and down payment, the buyer’s ledger shows zero owed. Any earnest money already applied becomes a credit that exceeds the balance due, resulting in a refund.
For first-time buyers, this moment is significant. You enter escrow with $2,000 held. You exit with $2,000 back and the keys to your home. The key variable that makes the math work is whether the seller concession is large enough to absorb every line item on the HUD-1 that is not covered by the second mortgage.
Two Costs Buyers Must Pay Even When the Closing Statement Shows $0
A $0 at closing result does not mean a $0 home purchase. Two costs are paid outside of escrow and are non-refundable regardless of what assistance programs a buyer uses:
Appraisal fee: Lenders require an independent appraisal to confirm the property’s value supports the loan amount. This fee is paid directly to the appraisal company, typically ranging from $400 to $600 in the Las Vegas market, and is due before or when the appraisal is ordered. Home Is Possible does not cover it.
Home inspection fee: Buyers select their own inspector and pay the fee directly to that inspector before or at the time of the inspection. Las Vegas home inspections typically cost $300 to $500 depending on property size and scope.
In Violet’s transaction, these two fees were the only items she paid. Every other cost, including the down payment and all lender fees appearing on the settlement statement, was covered through the HIP second mortgage and the seller’s $7,700 concession.
Buyers should budget $700 to $1,100 for these out-of-pocket costs before entering escrow. Having this amount available as liquid savings is a reasonable minimum even for a fully DPA-funded transaction.
Is Home Is Possible the Right Program for Your 2026 Las Vegas Purchase?
Home Is Possible works best for buyers with stable income, a credit score of 640 or higher, and a target purchase price within Clark County program limits. The program is not limited to first-time buyers. Any buyer meeting the income, credit, and purchase price criteria may apply regardless of prior homeownership history.
For buyers who qualify for multiple programs, comparison matters. Grand Prix Realty works with lenders who run scenarios across HIP, VA loan options, and other Nevada programs to identify the best net outcome per buyer’s specific profile.
Additional programs that pair well with or serve as alternatives to Home Is Possible:
- Home Is Possible for Heroes: Enhanced terms for veterans and active military
- Home Is Possible for Teachers: Targeted assistance for licensed educators
- CBC Mortgage Chenoa Fund: Forgivable DPA on FHA loans for buyers who need grant-style assistance
For a broader comparison of Nevada first-time buyer programs, see the Las Vegas first-time homebuyer programs guide for 2026 and the full Nevada Home Is Possible program overview. Explore further in our first time home buyer assistance programs.
The Bigger Picture: Violet’s Property Gained Value While She Built Equity
Violet purchased in September 2022 when many prospective buyers were waiting for a market correction that did not arrive on the timeline they anticipated. By November 2023, her property had appreciated to approximately $230,000, representing roughly $31,500 in equity growth on a purchase that required $0 at closing.
The lesson extends beyond any single program. Buyers who wait for perfect market conditions often watch months or years pass while paying rent that builds no equity. The buyers who enter the market with a solid plan, the right financing team, and a property suited to their actual budget tend to outperform those who wait.
For buyers still evaluating whether to rent or purchase in 2026, the complete rent vs. buy analysis for Las Vegas provides current data on monthly payment comparisons, equity timelines, and break-even calculations.
Frequently Asked Questions
What is Nevada’s Home Is Possible program?
Home Is Possible is a down payment assistance program administered by the Nevada Housing Division. It provides 3-6% of the loan amount as a second mortgage at a competitive fixed interest rate. The program works with FHA, VA, USDA, and conventional loans and is available to any qualifying buyer in Nevada, not just first-time homebuyers.
How did Violet buy a home with $0 down in Las Vegas?
Violet combined two funding sources: the Home Is Possible second mortgage, which covered her FHA down payment requirement, and a $7,700 seller concession that covered her closing costs. The overlap of these two sources eliminated every dollar she would otherwise have owed at closing. Her $2,000 earnest money deposit was then refunded because the balance due was zero.
What credit score do you need for Home Is Possible in Nevada?
The Nevada Housing Division requires a minimum credit score of 640 for FHA loans under Home Is Possible, and typically 660 or higher for conventional loan options. Violet’s score was approximately 660, which qualified her for the program’s standard FHA terms.
Does Home Is Possible require buyers to be first-time homebuyers?
No. Home Is Possible does not restrict eligibility to first-time buyers. Any buyer who meets the income limits, credit score minimums, and purchase price caps may apply regardless of prior homeownership history.
What costs does Home Is Possible not cover?
Home Is Possible covers the down payment via a second mortgage. Closing costs are typically covered through seller concessions and any remaining DPA balance when structured correctly. However, the appraisal fee and home inspection fee are paid outside of escrow and are not covered by the program. In Las Vegas, these typically total $700 to $1,100 combined.
