July 31, 2021

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Nebraska First-Time Homebuyer Assistance Programs

If you’re looking for your first home in Nebraska, the Nebraska Investment Finance Authority, the state-owned real estate finance agency, can help you get an affordable mortgage Advance payment assistance. The organization’s programs are usually reserved for First time buyer, and include homebuyer training to help you as you begin your purchase.

If you’re interested in lowering the Nebraska home ownership barrier, read on to find out what might be available to you.

Nebraska First Time Buyer Loan Programs

NIFA Homebuyer Assistance Program (HBA)

The Nebraska Investment Finance Authority (NIFA) Homebuyer Assistance Program (HBA) offers both low-interest mortgage and down payment assistance. The program is available to first-time buyers (defined as those who have not owned a home in the past three years), qualified veterans, or buyers shopping in a target area. You can get a 30 year conventional loan, an FHA, a VA, or a USDA loan through HBA.

As long as you have at least $ 1,000 to contribute to the purchase, you can qualify. However, this may depend on the type of loan and your closing costs. Further admission requirements are:

  • 640 minimum credit score with a debt-to-income ratio (DTI) of 45 percent or 660 minimum credit score with a 50 percent DTI
  • Must complete the Homebuyer training course
  • Must meet NIFA Income limits
  • Must meet NIFA purchase price limits, which are $ 283,000 for a unit with a unit in a non-target area and $ 346,000 for the same property type in a target area

NIFA First Home Program

First time buyers who do not need down payment assistance can qualify for NIFA’s First Home program, which applies to a conventional loan, an FHA loan, or a USDA loan. The interest rates under this program are typically lower than the interest rates on an HBA loan, but the eligibility requirements are the same.

If you are not a first-time buyer but are buying a home in a target area, you can take advantage of the First Home Targeted program, which is similar to the First Home loan but has more flexible income and purchase price restrictions.

NIFA Military Home Program

Military and qualified active duty veterans – first-time buyers or not – can also obtain a low-rate, low-down payment or no down payment mortgage through the NIFA Military Home Program. The program applies to VA loans but can also be used in conjunction with an FHA or USDA loan if you are not eligible for a VA mortgage.

Nebraska Down Payment Assistance

NIFA HBA deposit assistance

If you qualify for a first HBA mortgage through NIFA, you are also eligible for down payment assistance, which is in the form of a second loan of up to 5 percent of the home purchase price of up to $ 10,000. The interest rate on this loan is 1 percent and you will pay it back over 10 years.

NIFA First Home Grant

If you qualify for NIFA’s First Home program, you may receive a $ 5,000 grant with your mortgage to help cover your down payment or closing costs. The grant does not have to be repaid. To qualify, your income cannot exceed 50 percent of your income Area Median Income (AMI) in the county where you are buying a home.

Note that the funds for this program are limited and are based on availability.

Other first-time buyer loan programs

In addition to the Nebraska state’s first-time buyer programs, there are other national programs that could help you get into your first home sooner. These include conventional 3 percent loans from Fannie Mae and Freddie Mac, as well as loans from FHA, VA, and USDA. Everyone has different requirements, but some are less stringent than others. For example, homebuyers with low credit scores or limited down payment savings may still qualify for an FHA loan. To learn what you might be eligible for, visit the Bankrate Guide Loans and Programs for First Time Buyers.

For more home ownership programs in Nebraska, including by city, see HUD.gov.

Getting started

Before reaching out to mortgage lenders, you should contact the Nebraska Investment Finance Authority (NIFA) to find out which programs might be right for your situation. If you are interested in one, you can connect with one NIFA Approved Lender to determine what you need for a home loan. Regardless of which mortgage you ultimately choose, it is wise to compare Mortgage rates and loan offers to ensure that you are getting the lowest interest rate and the best possible terms.

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