First Time Home Buyer

 Programs in Nebraska

Complete First Time Home Buyer Programs Available in Nebraska.

The state agency created by the legislature in Nebraska to offer first time home buyer programs is the Nebraska Investment Finance Authority. Here is a summary of the current first time home buyer programs that are offered:

First Home

The First Home Mortgage has a fixed-rate with a 30-year term. There is no prepayment penalty. Interest rates under the NIFA program will change from time to time. Interest rates are generally less than non-NIFA mortgage rates. A First Home Mortgage may not be used to refinance an existing loan, other than refinancing a construction period loan or similar temporary initial financing with a term of 24 months or less.

First Home Plus

The First Home Plus mortgage program works just like NIFA’s First Home mortgage program, except it eliminates some of the costs and fees you otherwise would pay in connection with obtaining your mortgage.

Just like a borrower of a First Home mortgage, you must be a first-time homebuyer, meet the income and purchase price limits, live in the residence as your principal residence, and satisfy the other First Home regulations and requirements. Yet unlike a First Home mortgage, which requires a borrower to pay discount points and origination fees equal to 1 ¾ of the principal amount of the mortgage, you do not pay any discount points or origination fees with a First Home Plus mortgage. You do still pay other standard and required application fees and closing costs relating to your First Home Plus mortgage.

Homebuyer Assistance (HBA)

NIFA's Homebuyer Assistance (HBA) Mortgage provides down payment and closing cost assistance. To qualify, the borrower must meet the same requirements as a First Home Mortgage including the income and purchase price limits and the first-time homebuyer requirement.

Under the HBA mortage, down payment and closing cost assistance is provided by NIFA in an amount currently equal to 4.25% of the first mortgage amount. The borrower is required to execute a second mortgage for the amount of the assistance. The second mortgage bears no interest and repayment is required only if the borrower pays off the first mortgage prior to the expiration of 11 years. (The actual amount of the second mortgage that must be re-paid declines over time from year 1 to year 11.) The HBA mortgage is assumable under certain conditions.

First Home Focused (Targeted Areas)

NIFA's First Home Focused Mortgage (Targeted Areas) typically offers a lower interest rate and higher income and purchase price limits. You do not have to be a first-time homebuyer if you are buying in a NIFA Targeted Area. However, the property must still be owner-occupied.

First Home Super

NIFA's First Home Super Mortgage provides additional financial incentives for homeownership. A lower interest rate helps increase the supply of affordable housing by providing financing for new single-family homes and for existing housing stock which has undergone a certain amount of rehabilitation.

This is a finite resource that must be used creatively to maximize the greatest impact in neighborhoods and communities. A limited pool of funds is allocated by NIFA on a first-come first-serve basis. First-time homebuyers should contact a NIFA participating lender and inquire about NIFA's First Home Super Mortgage. Additional monies are available for special projects through the Collaborative Resource Allocation for Nebraska (CRANE) process.

First Home Super mortgages are available for first-time homebuyers with Incomes at or below 80% of the county area median income (.pdf - 56KB), adjusted for family size. Also see maximum Purchase Price Limits. Funds may be used to purchase new or existing housing stock. To be eligible, existing homes must have at least $3,000 of rehabilitation that must be completed prior to closing. Generally, the $3,000 rehabilitation amount must be included when determining the purchase price of the home for purposes of meeting the NIFA purchase price limits.

Mortgage Credit Certificate

Mortgage Credit Certificates (“MCCs”) are nonrefundable, federal tax credits that provide financial assistance to certain new and existing homeowners as an alternative to NIFA's single family mortgage revenue bond financing program (NIFA's “Bond Program”). A homeowner holding an MCC issued by NIFA receives an annual federal tax credit that the homeowner can apply against his or her federal tax liability in each year the MCC is effective.

Under the MCC Program, NIFA will issue MCCs to qualifying low and moderate income persons and families in connection with the following types of loans

Home Mortgage Loans relating to the purchase of a new or existing residence located in a Nebraska Targeted Area
Qualified Home Improvement Loans relating to a homeowner's qualified home improvement of his or her existing principal residence in Nebraska; and
Qualified Rehabilitation Loans relating to a homeowner's qualified rehabilitation of his or her existing principal residence in Nebraska.

For complete details on these first time home buyer programs available to Nebraska residents, visit the Nebraska Investment Finance Authority website.

It is highly recommend that you also visit the First Time Home Buyer Grants page for free assistance with the down payment.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources