2022 Nevada First-Time Homebuyer Assistance Programs
Average home prices in Nevada continue to increase each year, and since 2020 prices have been skyrocketing, making buying a home challenging for first-time homebuyers.
However, several first-time homebuyer assistance programs are available that can level the playing field and get you into your first home faster, with help for lower interest fees, down payments, and closing costs.
Nevada First-Time Homebuyer Programs
There are a number of first-time homebuyer programs in Nevada that can assist you with purchasing your first home. However, there are some general requirements to qualify, such as maximum income, your credit score, and your debt-to-income ratio.
Home Is Possible (HIP)
The Nevada Home is Possible program allows you to purchase a home in approved areas of Nevada with favorable interest rates and with assistance on your down payment of up to 4%, which is waived if you stay in your home for at least three years.
You’ll need a credit score of 660 to qualify for the loan, your debt-to-income ratio will need to be 45%, and there are maximum income limits up to a $135,000 household income depending on the county you decide to live in.
Home Is Possible For Heroes
The Home Is Possible For Heroes program is a subset of the overall HIP program, it’s focused on veterans and active service members. It provides a below-market fixed interest rate on a 30-year mortgage and a reduced monthly payment.
You still need a minimum credit score of 640, a reasonable debt-to-income ratio, and there are maximum household income limits. You’ll also find that there is a maximum home price that will qualify for this loan.
Home Is Possible For Teachers
The Home Is Possible For Teachers program provides down payment assistance of up to $7,500, which is forgiven after five years of living in your home. You also get below-market interest rates on 30-year loans.
You’ll need a minimum credit score of 660, be licensed as a k-12 public school teacher in Nevada, and there are maximum household incomes and maximum price on your home.
The other thing to note about the Home is Possible For Teachers program is that it’s only available on government-guaranteed loans, so it should be used in combination with one of the federal loan options listed at the bottom of this article.
Home At Last Down Payment Assistance
The Home At Last down payment assistance program helps with down payments and closing costs for all types of loans when you’re buying within rural Nevada communities of under 150,000 residents.
You’ll need a credit score of 640, a debt-to-income ratio of 45%, and your maximum household income can’t be over $150,000.
Home At Last Mortgage Credit Certificate (MCC)
The Home At Last mortgage credit certificate provides a yearly tax credit of around 20% of your mortgage interest payments for first-time home buyers and some veterans; it’s essentially a 20% discount on your mortgage payments forever.
You need to apply before you purchase your home, the house must be in certain rural areas, and your household income can’t be over a certain threshold depending on which county you decide to settle in.
One potential downside is that selling your home within nine years may make the credits repayable.
Federal First-Time Homebuyer Programs
While there are a great range of first-time homebuyer programs specifically for Nevada, there are also federal programs that may be a better match to your needs and current situation, so review all programs before deciding which to go with.
- Lenient Conventional Loans
Both Fannie Mae and Freddie Mac offer excellent conventional home loans with down payments as low as 3%, which is helpful if you cover the monthly costs but haven’t been able to build up a size-able down payment yet.
The Federal Housing Administration guarantees your loan with private lenders so that you can get more favorable mortgages, including low down payments of 3% - 10%, low closing costs, and better interest rates.
Veterans Affairs can provide a guarantee for veterans, active duty service members, and a number of other special cases that gives you much more favorable interest rates on private mortgages.
The USDA can assist low to moderate income homebuyers with guarantees that allow you to get reasonable loans that have no down payment, but you’ll need to purchase in a designated rural area.
*Disclaimer: This material is provided for information purposes only and is not to be construed as investment or tax advice. Readers are strongly advised to consult with their professional advisors regarding the information herein.
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