| Why trust us: To create this comprehensive guide, we researched the available housing options in Las Vegas, consulted with local housing experts, and had the guide reviewed by a real estate professional with rent-to-own experience. Learn more. |
Rent-to-own homes in Las Vegas offer a potential pathway to homeownership for people with less-than-perfect credit (580 FICO or lower) or limited funds. These arrangements allow tenants to rent a property with the option to buy it in the future.
However, rent-to-own homes are uncommon in Las Vegas, according to DeShawna Whitmore, a realtor with Realty One Group. Your agent likely won't find any listings on the multiple listing service (MLS), a database of real estate listings shared by real estate agents, and you may have trouble spotting listings on popular real estate websites like Zillow. Only two national rent-to-own companies, Home Partners of America and Trio Homes, currently operate in the area.
Read our in-depth guide to finding legitimate rent-to-own homes in Las Vegas and explore potential housing alternatives.
What to know about rent-to-own homes in Las Vegas
Limited choices
Rent-to-own homes have never been common in Las Vegas. "I've been licensed since 2006, and it's never been common here," says Whitmore. "People tend to be uncomfortable with the contracts and have had negative experiences with lease-to-own agreements."
Rent-to-own contracts often have complex terms and conditions; some may even require you to buy the house regardless of changing circumstances or charge you an expensive termination fee if you choose not to or can't buy. These intricate terms and potential financial penalties make many potential buyers wary of pursuing rent-to-own agreements.
Poor history
Negative experiences include the inability to qualify for a loan and purchase the home before the lease expires.
The lack of appreciation in housing prices can also make it difficult for buyers to justify the higher costs associated with these agreements.
"[Rent-to-own] can lead to people feeling duped if the home doesn't appreciate fast enough," adds Whitmore.
Risky in a volatile market
From May 2022 to March 2023, single-family home prices in Las Vegas fell by $57,000, although housing prices have rebounded sharply since then.[1] This decline marked the first time in 11 years the market saw a price drop, according to Whitmore. "That impacted your ability to buy a home that's supposed to appreciate every year."
Housing price declines are problematic because the cost of purchasing a home in a rent-to-own program typically rises yearly. If the home appraises for less than your purchase price, you would likely have to cover the difference or end your contract.
Whitmore explains that this business model works much better in a market where home prices rise 10–20% or more yearly, but not in a declining market.
Compare rent-to-own options in Las Vegas
Home Partners of America is one of the easiest rent-to-own programs to qualify for. It has close to 200 active listings in Las Vegas and offers flexible renting options for single-family homes and townhouses up to a $500,000 purchase price.[2]
Unlike popular rent-to-own companies like Divvy, part of your rent does NOT go toward your down payment savings. You simply have the option to buy the house during your lease.
However, Home Partners is an expensive option over the long run. Your home purchase costs rise by 3% to 5.5% annually, regardless of market conditions. So, a Las Vegas home initially valued at $490,000 could cost you up to $670,000 if you rent the house for five years, even if home prices fall.
Local landlord listings
Landlords who offer rent-to-own homes in Las Vegas can set their own eligibility criteria and requirements. The payment structure, lease length, purchase price, and other conditions often vary among landlords.
"Often, these agreements don't work out as expected because the price and rent credits don't align with what was initially agreed upon," Whitmore says. "Without an agent to guide the transaction, these agreements can be problematic."
» LEARN: 5 Signs of a Rent-to-Own Scam (and How to Avoid One)
🔎 Pro tip
Your credit score affects your ability to qualify for a mortgage. Check your credit score now, and you can take work to improve it and correct any mistakes in your credit report.
Not sure where your credit stands? Get your credit report at AnnualCreditReport.com. This free resource gives you access to your scores from all three major credit bureaus (Equifax, Experian, and TransUnion) once a year.
Rent-to-own home alternatives in Las Vegas
Rent-to-own options in Las Vegas may seem appealing, but traditional home buying can sometimes be more accessible than you think. The upfront costs of buying can be surprisingly low with various financial assistance programs available.
"Between down payment assistance and seller concessions, I've seen a lot of people close on their home while only bringing $500 or less to closing," says Janese Williams, a mortgage loan originator with Champions Mortgage, based in Sugar Land.
Down payment and closing cost assistance programs
Home is Possible Nevada provides a 30-year fixed-rate loan of up to 4% of your total loan amount, which can be used to cover your down payment or closing costs. This loan is forgivable if you stay in the home for at least three years.
Workforce Initiative Subsidy for Homeownership (WISH) offers eligible first-time home buyers in low- to moderate-income households 4-to-1 matching grants of up to $30,806 for 2024. Offered by Greater Nevada Mortgage in partnership with the Federal Home Loan Bank of San Francisco.
Home Means Nevada Rural Down Payment Assistance offers eligible first-time home buyers forgivable down payment assistance and competitive rates on 30-year fixed mortgage loans.
Local affordable housing options
Affordable Housing Trust Fund distributes funds to support affordable housing for qualifying families, who earn up to 60% of the area's median household income. It provides emergency rent assistance, homeowner renovation support, and down payment assistance.
Southern Nevada Regional Housing Authority provides affordable housing for low-and-moderate income individuals and families. It offers homes with fixed rents that are typically 30-40% below market rates.
Nevada Hand is a nonprofit that develops and manages affordable housing for more than 36 communities serving over 8,200 residents in Southern Nevada for seniors and working families.
First-time home buyer loans
| Loan type | Min. down payment | Min. credit score | Max. debt-to-income level |
|---|---|---|---|
| FHA | 3.5% | 10% | 580 | 500–79 | 43% |
| USDA | None | Varies by lender | 41% |
| VA | None | 580 | 41% |
| Rental | 1–2 months rent | 680 | 33% |
| Conventional | 20% | 620 | 45% |
FHA loans
FHA loans attract a lot of interest from first-time home buyers due to their lower down payment and low credit score requirements. However, be aware that FHA mortgages have strict requirements and fees, including mortgage insurance premiums.
FHA loans also have specific maximum loan limits, determined by the average home sales value within each county. In Nevada, most counties have FHA loan limits up to $498,257 for a single-family home in 2024.
USDA loans
USDA loans can provide zero down financing for home purchases in rural areas and down payment and closing cost assistance. Properties located in towns just outside Las Vegas, such as Boulder City and Jean, may qualify for USDA financing.
VA loans
This government-backed mortgage option is provided by private lenders, including banks and mortgage companies, and offers 0% down financing for veterans, active service members, and surviving spouses.
Free resources in Las Vegas
Local housing counselors
Neighborhood Housing Services of Southern Nevada (NHSSN) offers one-on-one pre-purchase counseling to help you make well-informed choices and point you to valuable resources for accomplishing your homeownership goals.
» FIND: HUD-approved housing counseling locations in Nevada
Housing education programs
The Nevada Housing Division and Freddie Mac offer a free online course that covers credit scores, budgeting, and the home buying process.
The NHSSN's home buyer education course, offered through eHome America, helps you determine if homeownership is the best option for you.
Why you should trust us
Our team at Clever spent several weeks learning the ins and outs of rent-to-own homes to create this comprehensive guide. We identified legitimate companies that operate in your area, consulted with local realtors, and researched government housing resources.
Our experts
- DeShawna Whitmore, a Las Vegas realtor with Realty One Group. Whitmore has 17 years of experience and her team specializes in helping home buyers, including clients who want to pursue rent-to-own options.
- Steve Nicastro, a real estate professional who has advised numerous clients on whether rent-to-own housing is a good option for them. His expertise helped us provide a more in-depth understanding of the rent-to-own process.
