Nevada Mortgage Qualification Estimator

You can keep the marital home if you can qualify for a mortgage refinance on your own income and buy out your ex-spouse's community property share—typically 50% of the equity under Nevada law. With Nevada's median home value at $418,743, a 50% equity buyout on a home with $150,000 in equity would require $75,000 in cash or a cash-out refinance. Your DTI must remain below 43% after assuming the full mortgage payment.

Lenders require your total debt-to-income ratio to stay below 43%, with housing costs (principal, interest, taxes, insurance) ideally under 28% of gross monthly income. If you receive alimony or child support, that income counts toward qualification after 6 months of documented payments with at least 3 years remaining. Nevada's Home Is Possible program offers 4% down payment assistance to borrowers with 640+ credit scores, reducing the cash needed at closing.

Yes, alimony and child support count as qualifying income under federal lending guidelines if you can document 6 consecutive months of receipt and the payments will continue for at least 3 more years. Provide your divorce decree, payment history, and court order to your lender. Conversely, alimony or support you pay reduces your qualifying income and increases your DTI calculation.

While not legally mandated, refinancing is the only way to remove your ex-spouse's liability from the mortgage. A quitclaim deed transfers property ownership but does not release mortgage responsibility—lenders can pursue either ex-spouse for payment regardless of what your divorce decree states. Most divorce settlements require refinancing within 60-180 days of the final decree to protect both parties' credit.

Nevada's median home price is approximately $418,743 statewide as of early 2026, though the Las Vegas metro area averages higher at around $440,327. Home prices decreased about 1.3% year-over-year, with forecasts predicting modest 2-4% annual growth through 2026. A 20% conventional down payment on the statewide median would require $83,749, though FHA loans need only 3.5% ($14,656).

Divorce itself does not appear on credit reports or directly impact your score. However, missed payments on joint accounts, closed credit cards, and debt division can significantly damage credit. If your ex-spouse fails to pay a jointly-held debt assigned to them in the divorce decree, creditors can still report the delinquency on your credit file. Close or refinance joint accounts promptly after divorce to protect your credit.

Nevada offers several programs beneficial for divorced homebuyers: the Home Is Possible program provides 4% down payment assistance with 640+ credit, Nevada Rural Housing's Home At Last program has no first-time buyer requirement, and the Mortgage Credit Certificate (MCC) offers up to 30% federal tax credit on mortgage interest annually. If you haven't owned a home in 3 years post-divorce, you qualify as a first-time buyer under HUD guidelines, opening access to FHA loans with 3.5% down.

Yes, funds from your divorce settlement can be used for a down payment. Lenders require documentation showing the source of funds—typically your divorce decree and bank statements showing the deposit. If receiving a property buyout, cash-out refinance proceeds, or liquid asset division, ensure a clear paper trail. Settlement funds held for 60+ days in your account are generally considered "seasoned" and require minimal additional documentation.