The Nevada Housing Division or NHD offers both special mortgage financing options and first time homebuyer programs for Nevada residents with low to moderate incomes. There is also additional help available for closing cost and down payment assistance.
First Time Home Buyer And Special Mortgage Programs Are Available In Nevada
The Nevada Housing Division offers a low interest rate 30 year fixed rate mortgage for first time home buyers. A first time home buyer is defined as a person or persons who have not owned a home in the past three years. The program will only finance owner occupied property. You will not be able to finance second homes or investor property through NHD.
You must complete a 6 to 8 hour Homebuyer Counseling Course prior to funding of the mortgage loan. The class must be HUD approved. A person's assets may not exceed 50 percent of the purchase price of the property being purchased. The only exception would be for elderly or disabled persons and such assets are the primary source of income. There is a lower asset test for loans for the down payment. The maximum is $5000. A borrower must have good credit that meets underwriting guidelines as set out by FHA, RHS, VA or Fannie Mae.
City Of Henderson First Time Home Buyer Program
The First Time Home Buyer Assistance Program in Henderson Nevada was designed to help low income families buy a home. Henderson will make a 0% deferred interest loan that will not exceed 10% of the purchase price for down payment. You must live in Henderson for at least one year to be eligible. This loan must be paid back when you sell the property.
Is There Down Payment And Closing Cost Assistance In Nevada?
There is a down payment and closing cost assistance program in Nevada. It is called the NHD Down Payment and Closing Cost Loan Program. The program will provide up to $10,000 in home buyer assistance. It is a fixed 20 year loan that is 2% higher than the first mortgage. This program will limit the amount of assets that you can have after closing to no more than $5000. This would include savings accounts, cash, stocks, bonds and equity in real property.
To receive homebuyer assistance in Nevada you must complete a first time homebuyer education program that is approved by the NHD. You can apply for home buyer assistance through a participating bank that will be completed simultaneously with the application for the First Time Homebuyer Loan. You can receive up to $10,000 in assistance. There are no exceptions.
How Long Do I Have To Keep My Home To Avoid A Recapture Fee?
To avoid a recapture fee for your down payment assistance, you need to remain in the property for 9 years from the closing date of the mortgage loan. If you sell your interest in the property before occupying the property for nine years, you will be subject to the Recapture Tax upon the sale of the property. Make sure you know that date that you closed on the property originally. This will be the date used to figure out if you are subject to any taxes. The recapture tax can be steep. It is 50% of the gain realized on the sale of your interest in the property. More information on Federal Recapture Tax.
Is There Assistance For Rural Home Loans And Down Payment Assistance In Nevada?
If you are trying to purchase in rural Nevada cities and towns with fewer than 100,000 people. There is assistance through the Nevada Rural Housing Authority with the Home At Last Program. This program offers a free 4% cash down payment and a 6.35% mortgage loan. The 4% cash down payment does not have to be paid back. The program is currently out of funds and should have funding again in early 2009. For more information please check with a participating lender in your area.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
(New site)