Advance Buyer Credit Loan Program From Nebraska Investment Finance Authority

Similar to other states, Nebraska’s state housing authority: Nebraska Investment Finance Authority has developed the Advance Buyer Credit Loan Program (ABC) to allow first time home buyers in Nebraska to get access to their IRS $8000 tax credit for buying their first home.
Unlike other states, Nebraska offers the Step Down Interest Rate for home buyers who payoff their ABC loan within the specified 120 days of getting the tax credit advance loan when they buy their home. See below.
See more information on the federal $8000 first time buyer tax credit.

Specific Guidelines of NIFA Advance Buyer Credit Loan Program

The program is expected to run until December 1, 2009 when the $8000 IRS first time buyer tax credit runs out.

The program is only available to first time home buyers.

First time buyers will be subject to income and property purchase price limits depending where the house is located. See: Nebraska Purchase Mortgage and Down Payment Assistance Programs for more information on income and price limits.

Home to be purchased must be the primary residence of the first time buyer.

First mortgage loan programs must be obtained through NIFA approved mortgage lenders who offer FHA home loans and USDA Rural Development mortgages.

Home buyers must have $1000 of their own money to use for down payment.

Home buyers must attend a NIFA approved home buyer education program.

The Advance Buyer Credit Loan is a second mortgage that will have an interest rate equal to the interest rate of the first mortgage.

The maximum loan amount is $6800 or 85% of the $8000 federal tax credit that the home buyer qualifies for.

Step Down Rate – If the home buyer pays the ABC loan back within 120 days of inception the home buyer will receive a reduction in their first mortgage interest rate of .5%.

If the ABC loan is not paid on time, the loan will convert to a 10 year loan.