Tap Into DPA Programs Available To You
First time home buyers in Nebraska have options available to them for help in purchasing their first residence. If you feel that saving enough for a down payment will forever prevent you from buying your first residence, here’s some great news. The Nebraska Investment Finance Authority (NIFA), offers down payment assistance for Nebraska 1st time property buyers.
Nebraska DPA Details
Help coming up with the needed down payment is perhaps the greatest resource that you can tap into as a first time home buyer. Here are some details from the NIFA website:
Homebuyer Assistance (HBA)
The Homebuyer Assistance (HBA) Program combines the benefits of a first mortgage loan with a second mortgage loan for homebuyers purchasing a home within the State of Nebraska. The second mortgage loan provides down payment and closing cost assistance.
You must be a first-time homebuyer; unless the home is located in a federally designated target area or you meet the definition of a qualified veteran. A first-time homebuyer is someone that has not owned and lived in a home within the past 3 years. Certain exceptions apply if a home was lost by divorce, forced job relocation or natural disaster. There are maximum income and purchase price limits that apply to all homebuyers. You must live in the home as your principal residence.
The second mortgage loan provides assistance in an amount up to 5% of the purchase price of the home. NIFA requires the homebuyer to have a minimum investment of $1,000. The term of the second mortgage loan is 10 years (120 months). Homebuyers must make principal and interest payments on the second loan.
All homebuyers must have a minimum credit score of 640 to qualify for a NIFA loan. If you do not have a credit score, you may still qualify. There is a maximum debt to income ratio requirement of 45% for all loans. Contact a participating lender for more information.
To get complete program details, including income limits as well as how to get the application process started, please visit the NFIA DPA page.
More Down Payment Assistance
In addition to the above DPA program offered by NIFA, there are local housing agencies in various towns, cities and counties throughout the state that provide financial assistance to prospective 1st time property buyers as well. To find out about more down payment assistance available near you, please visit local first time buyer programs in Nebraska.