First time home buyers in Nebraska, like those in other states, have access to a wide range of assistance programs designed to help them purchase their first properties. These programs sometimes offer low-interest loans, down payment and closing cost assistance, or accommodation of both. If you're not aware of what's available in Nebraska you can always check with your real estate agent or your mortgage lender. Both are great resources for finding out what's available in your area.
Like all states, Nebraska has established a special agency that's responsible for overseeing housing programs. That agency is called the Nebraska Investment Finance Authority (NIFA). This authority has several different missions, one of them being to coordinate all federal and state housing assistance resources and administer them through local lending institutions. At the time of this writing the NIFA website lists four different programs providing assistance to first time home buyers.
First Home Plus
First Home Plus is for single-family homes being purchased by first time buyers. It is a somewhat unique program in that rather than offering direct assistance, it offers indirect assistance by eliminating the various costs and fees normally associated with obtaining a mortgage. This can be a significant amount of money based on standard closing costs being up to 3% of the total purchase price. In order to qualify you must make the new home your principal residence, meet income eligibility requirements, and adhere to other restrictions that may apply in certain localities or targeted areas.
First Home Focused
The First Home Focused option is specifically aimed at targeted areas where the state of Nebraska is trying to increase home ownership. Right now those areas include Lincoln, parts of Douglas County, parts of Sarpy County, and all of Thomas County. This program provides a low interest loan to first time home buyers who meet eligibility requirements and make the home their primary residence. Under certain conditions, repeat home buyers can qualify for this program in some of the targeted areas. These targeted areas change from time to time so it's important to check with the NIFA for up-to-date information.
Homebuyer Assistance
The Homebuyer Assistance mortgage is a secondary loan offered in conjunction with another NIFA first mortgage loan. This secondary loan is used toward down payment and closing costs and it's paid off as part of the mortgage for the first seven years of the principal loan. Applicants must meet the same income eligibility requirements of a standard NIFA loan and the assistance cannot exceed 3% of the total purchase price. Home buyers must contribute at least $1,000 of their own funds at the time of closing. In addition, the NIFA may grant exceptions to residency requirements and allow this secondary loan to be assumed by a future buyer.
Affordable Housing Program Grant
This program resulted from grant funds provided by the Federal Home Loan Bank in 2008. The program provides cash grants to first time home buyers who meet eligibility requirements. The grants are used to pay down payment and closing costs and never need to be repaid. The income eligibility requirements vary depending on the geographical location, and take into account the income earned by all adults living in the home. This grant funding is limited and will no longer be available once it's all used up.
Additional Assistance Programs
In addition to the four first time home buyer programs mentioned above there are a handful of others administered by counties and local municipalities. The HUD website maintains an ongoing list of these programs, although there's no way to know if their information is kept up-to-date. For your convenience we list below the current HUD listings as of the date of this writing.
- Douglas County Holy Name Housing Corporation, New Community Development Corporation and Omaha Economic Development Corporation, Focus Community Initiative Challenge Grant (GRANT)
- Grand Island Homeownership Opportunity Program
- Hastings Southwood Subdivision Down Payment Assistance (DPA)
- Lancaster County Affordable Homeownership Program (HOP)
- Lincoln First Home Program (FHP)
- Multi Counties Blue Valley Community Action Inc Home-Ownership Opportunity Program (HOP)
- Multi Counties High Plains Community Development Corporation Down Payment & Closing Cost Assistance Program (DAP)
- Multi Counties Northeast Economic Development, Inc. Northeast Regional Down Payment Assistance Program (DPAP)
- Multi Counties Northern Ponca Housing Authority Down Payment Assistance Program (DAP)
- Norfolk Elkhorn Valley Community Development Corporation Homeownership Opportunity Program (HOP)
- Omaha Housing Authority Public Housing Homeownership Program (PHHP)