Assistance Programs For First-Time Home Buyers In Nebraska

Buying a home is one of the most significant financial investments most people make in their lives. Unfortunately, the upfront costs can often deter prospective buyers from ever taking that step. The good news is that if you’re considering buying a home in Nebraska, the state has several first-time home buyer programs to remove some of the hurdles to homeownership.

If you’re considering buying a home in Nebraska, keep reading to learn about some of the first-time home buyer programs the state has to offer.

Buying A Home In Nebraska

Nebraska is an excellent place to call home, and for many good reasons. Also known as the Cornhusker State, Nebraska is home to nearly two million people. The state is known for its agriculture and its production of corn, wheat, and more. In fact, its state nickname comes from its corn production – it ranks third in the nation.

Nebraska also has a lot to offer its residents, from young professionals to families with children to retirees.

The state has a low cost of living and affordable housing. While it doesn’t have the massive cities you might find in other states, it does have a good balance of small towns and bigger cities. The state also has plenty of outdoor activities, lots of job opportunities and relatively low crime.

Nebraska also has some unique advantages for its residents, especially those considering buying a house. First, Nebraska has a cost of living that’s considerably lower than the national average. Despite that, people still earn a median household income that’s only a few thousand dollars lower than the nation’s overall median.

Today’s Mortgage Stats For First-Time Home Buyers In Nebraska

Like much of the country, Nebraska’s housing market has favored sellers over the past several years. This can result in homes selling more quickly and for a higher price. And while it’s true that Nebraska’s median home price has increased by 8.6% over the past year, it hasn’t risen as much as the nation’s median home price.

Nebraska is one of the cheapest states to buy a house. While the median home price in the U.S. at the end of 2022 was about $357,319, according to Zillow, the median in Nebraska is just $250,513. And in addition to the cost of homes in Nebraska, residents also have the benefit of a generally low cost of living.

It’s worth noting that despite the affordable home prices, Nebraska’s median home price isn’t all that much lower than the national median, which makes buying a house far easier. Nebraska’s median home price is 35% lower than the national median, while the median household income is only 3.5% lower than the nation overall.

Qualifying As A First-Time Home Buyer In Nebraska

To be eligible for any first-time home buyer programs in Nebraska, you’ll have to meet the following eligibility requirements set by the Nebraska Investment Finance Authority (NIFA):

• Must not have owned and occupied a home in the last 3 years
• Must have a minimum credit score of 640 with a 45% debt-to-income ratio (DTI) or a minimum credit score of 660 with a 50% DTI ratio
• Household income must be less than the maximum household income limit, which ranges from $89,000 to $126,840, depending on the number of people in the household
• You plan to purchase a home that's $427,000 or less in a target area or $349,000 or less in a nontarget area
• Must complete a home buyer’s education course

There are some exceptions to the rule limiting these programs to borrowers who haven’t owned and occupied a home within the past three years. Exceptions include:

• Qualified veterans who have been discharged from the service under conditions other than dishonorable discharge
• Buyers purchasing homes in target areas within Adams, Douglas, Jefferson, Lancaster or Scotts Bluff counties
• Homeowners who lost their homes due to divorce, natural disaster or forced job relocation

Nebraska First-Time Home Buyer Programs

Nebraska offers several first-time home buyer programs and grants to help make homeownership more accessible.

NIFA First Home Program

The  NIFA First Home Program is designed for borrowers who don’t need assistance with their down payments or closing costs and who are purchasing homes in targeted areas. This program offers more competitive interest rates on conventional, FHA, USDA and VA loans.

NIFA Military Home Program

The NIFA Military Home Program is specifically designed for buyers who are current employees of any military branch or who are discharged qualified veterans that haven’t been dishonorably discharged. This program can apply to VA, FHA, and USDA loans.

Down Payment Assistance For Nebraska First-Time Home Buyers

In addition to the programs we discussed above, Nebraska residents also have access to a down payment assistance program to help reduce the upfront cost of owning a home.

NIFA HBA Down Payment Assistance

The NIFA Homebuyer Assistance Program is designed to help buyers who may not be able to afford their down payment or closing costs. This program offers both first and second mortgage loans. Borrowers need only contribute $1,000 in most cases, though a larger investment may be required for certain types of loans.

How To Apply To Programs For First-Time Home Buyers In Nebraska

If you’re considering applying for one of Nebraska’s first-time home buyer programs, NIFA makes it easy to see if you qualify. On the organization’s website, you’ll find a simple form you can complete to determine if you’re eligible.

You’ll just have to provide some personal information, as well as the number of people living in your home, your household income, and what county you’re buying a home in. Once you complete the form, you’ll know if you qualify and can complete the application process.

NIFA also has a toll-free number where buyers can connect with Homeownership Team Specialists, who can speak with you about your situation and give you an idea of whether you might be eligible for one of the programs we’ve discussed above.

Other Federal First-Time Home Buyer Loans In Nebraska

The programs listed above are far from the only options available for first-time home buyers in Nebraska. Even if someone doesn’t qualify for one of the programs listed above, there are many other options that can help them buy their first home.

• Freddie Mac Home Possible mortgages: The Freddie Mac Home Possible loan helps very low and low-income borrowers buy homes with as little as 3% down. The wide variety of options and credit flexibilities with this loan help to make homeownership more accessible.
• Fannie Mae HomeReady mortgages: The Fannie Mae HomeReady Mortgage is a low down payment loan program designed for low-income borrowers and those with limited cash for a down payment.
• Fannie Mae standard 97% LTV loan: The Fannie Mae standard 97% LTV loan is a popular type of home loan that allows buyers to qualify with as little as 3% down as long as they meet the eligibility requirements of a conventional mortgage.
• FHA loan: An FHA loan is one that the Federal Housing Administration offers and is designed for borrowers with credit scores that don’t allow them to qualify for a conventional mortgage.
• VA loan: A VA loan is one that the Department of Veterans Affairs offers and is designed to help eligible current and former military members buy a home with no down payment.
• USDA loan: A USDA loan is one that the Department of Agriculture offers and is designed to help eligible borrowers in rural areas buy a home with no down payment.
• HUD Good Neighbor Next Door Program: The HUD Good Neighbor Next Door Program helps borrowers in certain occupations buy homes at a substantial discount. Eligible occupations include law enforcement officers, teachers, firefighters and emergency medical technicians. Eligible homes must be located in revitalization areas approved by HUD.

Each of the loan programs listed above can be a great program for some buyers, but none are the right fit for all buyers. When considering which loan program is right for you, consider factors like your income, where you live, whether you’re a military veteran, the size of the down payment you can afford and how much mortgage can you qualify for.

FAQs On Programs For First-Time Home Buyers In Nebraska

Are you considering applying for a first-time home buyer program in Nebraska? Here are a few more things you may want to know.

What is the average age of first-time home buyers in Nebraska?

While we don’t have data for Nebraska specifically, the average age of first-time home buyers in the United States was 36 years old in 2021, according to the National Association of Realtors.

Do I need to take a Nebraska first-time home buyer class?

Depending on the loan or program you apply for, you may be required to take some sort of first-time home buyer or homeownership education course. To determine if a class is required, read the requirements of the specific program you are applying for.

Is there a first-time home buyer tax credit in Nebraska?

The Mortgage Credit Certificate (MCC) Program makes homeownership more financially accessible to low-income borrowers. With this credit, borrowers can get a tax credit for up to $2,000 per year for their mortgage interest paid. This program is a federal one but is administered by state and local governments.

What credit score do I need for first-time home buyer assistance in Nebraska?

The credit score you’ll need to qualify for a first-time homebuyer program in Nebraska depends on your debt-to-income ratio (DTI). If you have a DTI of 45% or lower, you may qualify with a credit score of 640 or higher. With a DTI of 50%, you may qualify with a credit score of 660 or higher.

Is there a first-time veteran home buyer assistance program in Nebraska?

Yes, Nebraska has a first-time home buyer program that’s specifically designed for current and former military members. To qualify, veterans can’t have been dishonorably discharged but also don’t have to meet the requirements of a first-time home buyer.

The Bottom Line

If you’re considering buying a home in Nebraska, one of the first-time home buyer programs we’ve discussed in this article can help you do it. Even if you aren’t sure if you’ll qualify, it’s worth exploring these programs to see if you might be eligible.

If you’re ready to start shopping for your first home, start the approval process with Rocket Mortgage^® today.