Down Payment Assistance Programs for First-Time Homebuyers in Nebraska

Nebraska is held in high regard for its diverse landscapes, rich agricultural heritage, and vibrant cities like Omaha and Lincoln. It is a popular holiday destination courtesy of its natural beauty and attractions such as Sandhills, Omaha Zoo, and the Nebraska State Capitol.

In recent years, “The Cornhusker State” has witnessed a housing crisis with median home prices rising to approximately $296,500 as of April 2024. This price hike paired with high mortgage rates and limited inventory made it a challenge for Nebraskans to make their dream of becoming a homeowner come true, especially first-time buyers.

Do you want to become a homeowner in Nebraska but is the financial strain of down payment getting the better of you? You can apply for down payment assistance programs and reduce the burden.

Looking for Assistance in a Specific Part of Nebraska

Nebraska is facing a shortage of affordable homes for low-income households with reports of 77 housing units being affordable for every 100 renters with the state still requiring another 35,000 homes in the next five years to meet the demand.

Nebraska has implemented a variety of down payment assistance programs to address the issue. The potential homeowners can get a portion of the down payment and closing costs covered through these initiatives and homeownership is more accessible. This page will provide a comprehensive look into these programs, its sponsor, and the eligibility criteria for availing them.

Down Payment Assistance in Montana

Down payment assistance programs make homeownership easy for many Nebraskans, especially for first-time buyers. The programs are helpful for prospective homeowners in overcoming financial barriers associated with these purchases but also promotes homeownership education through courses. These initiatives are key to creating a more inclusive housing market.

Homebuyer Assistance Program

The Homebuyer Assistance Program (HBA) in Nebraska provides financial assistance to first-time homebuyers, particularly those from low to moderate-income families, in purchasing their new homes by providing financial assistance.

Fundamentals

• Assistance Type: Second mortgage
• Sponsor: Nebraska Investment Finance Authority (NIFA)
• Assistance Amount: $10,000 (at maximum)

Eligibility Requirements

• The applicant/borrower should not be a homeowner in the past three years
• Applicants have to make a minimum cash investment of $1,000 (the amount may vary based on loan type and seller contributions).
• Borrowers should have a minimum credit score of 640 with a 45% debt-to-income (DTI) ratio or a 660 credit score with a 50% DTI ratio.
• The household income should be $160,000 or lower.
• The purchase amount of the house should be $470,000 or lower
• The house must be the borrower’s principal residence within 60 days of closing.
• The applicant is required to complete a homebuyer education course

First Home Grant Program

The First Home Grant Program is aimed to provide relief to applicants from low-income families who are looking to become homeowners. The initiative provides financial support without the burden of repayment.

Fundamentals

• Assistance Type: Grants
• Sponsor: Nebraska Investment Finance Authority
• Assistance Amount: $5,000 (at maximum)

Eligibility Requirements

• The income of the applicants showed 50% or less of the area median income.
• Applicants should be first-time homebuyers i.e. that have not owned a home as their primary residence within the last three years.
• Applicants are required to be eligible for a first mortgage through NIFA’s Homebuyer Assistance Program (HBA).
• Homeowners should complete a homebuyer education course to be well-informed about the purchasing process.

Nebraska Down Payment Assistance Program FAQs

Are there any restrictions or conditions associated with down payment assistance?

Yes, certain down payment assistance programs have made it mandatory for applicants or borrowers to make their purchased homes the primary residence for a certain period before selling or renting them out.

How much down payment assistance can I receive?

The amount depends on the specific program and your individual financial situation. These initiatives may range from a few thousand dollars to a significant portion of the home’s purchase price.

Can I use down payment assistance funds for anything other than the down payment?

Applicants are not allowed to use the funds for other expenses but some programs may permit a portion of the funds to be used for other eligible expenses.

Disclaimer: This article is for informational purposes only and should not be considered as legal or financial advice. Please consult an attorney, mortgage lender, or CPA for guidance on your specific situation.