The Nebraska Investment Finance Authority or NIFA offers both special mortgage financing for first time home buyers and down payment assistance to help Nebraska residents buy their first homes.
What Kind Of Special Mortgage Programs Are Available In Nebraska For First Time Homebuyers?
The state of Nebraska is committed to its residents owning a home. This is especially true for low and moderate income households. Nebraska and the Nebraska Investment Finance Authority have the following home buyer programs available:
- The First Home Mortgage – Qualified first time home buyers buying a home anywhere in Nebraska can use this loan to buy a home. Purchase price limits apply as well as income limits do apply. Non first time home buyers can use Nebraska’s First Home Mortgage to purchase a property in a NIFA targeted Area. Purchase price limits and income limits in targeted areas a higher than in non targeted areas. (See the First Home Focused program description below)
The First Home Mortgage is 30 year low fixed interest rate mortgage. To qualify for this mortgage program you must apply through an approved mortgage lender within the NIFA lender network throughout the state. FHA, VA, USDA and conventional loans with PMI are eligible for this program. If you plan on using this loan to buy a home, you must plan to live in the property as it only available for owner occupied residences.
There are discount and origination fees associated with this program of 1.75% of the loan amount.
- First Home Plus – The First Home Plus mortgage works the same as the First Home Mortgage Program with the exception that it eliminates the discount and origination fees. A First Home Plus mortgage uses less of your available cash and allows you to use your money for other important needs you may have. As a result of removing the fees, the interest for this loan program are slightly higher than the First Home Mortgage program, but they are very competitive when compared to non NIFA mortgage programs.
- NIFA First Home Focused Mortgage – This mortgage program is offered in target areas in Lincoln, Omaha Douglas County, Omaha Sarpy County and all of Thomas County. This program typically offers a lower interest rate but allows higher income and purchase thresholds to be attained. There is no restriction for first time home buyers. Contact your local lender to see if you qualify.
What is a NIFA targeted area? A targeted is area is an area that is in need of special economic and community development. In these areas, NIFA and HUD have increased the income and purchase price limits to expand the number of eligible home buyers to be able to purchase homes in these areas.
Is There Down Payment Assistance In Nebraska?
Home buyers in Nebraska can apply for the NIFA Affordable Housing Grant Program through participating lenders. This program offers qualified and approved home buyers up to $3,000 in the form of a forgivable grant if the home buyer lives in their property for at least 5 years. There is no interest charged on the grant money, nor are there any monthly payments. This money can be used to satisfy down payment and closing cost requirements of their first mortgage, or used to make small repairs on the property.
To be eligible for this program must attend and complete a Reach homebuyer education class during your loan approval process. You must also put a minimum of $500 of your own money into the purchase. Qualified buyers will be subject to median household income limits depending on the location of the home being purchased.
NOTE: NIFA has another program that is not currently available called the NIFA Homebuyer Assistance Program. Due to the mortgage and financial crisis of 2007 and 2008 this program has been suspended indefinitely. Please check back with the NIFA.org website in the future to see if the program has been reinstated.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
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