First-Time Home Buyers In Nevada: Programs And Resource Guide

Nevada is a great place to buy a home, thanks to its low cost of living, minimal tax burden and abundance of outdoor activities. And if you’re a first-time home buyer in Nevada, there are plenty of resources available to make homeownership more affordable.

You could receive a low-cost loan and assistance with your down payment or closing costs. The resources outlined in this article will make purchasing your first home easier and more affordable.

Why Should First-Time Home Buyers Move To Nevada?

With a population of more than 3 million, Nevada is a western state bordering Oregon, Idaho, California, and Utah. The state is known for its desert landscapes ranging from 500 feet above sea level to mountains reaching 13,000 feet.

Though it’s a desert, it isn’t always hot in Nevada and the state experiences all four seasons. The summers are dry and hot, but the winters are surprisingly cold and snowy. The majority of Nevada is currently experiencing a moderate to severe drought.

There are many reasons you might want to buy a house in Nevada — the state provides a great combination of nightlife and outdoor activities. Nevada is known for its casinos, and there are plenty of nightclubs, lounges and bars to choose from.

But there are also plenty of opportunities to go hiking, rock climbing or biking. Nevada is home to Spring Mountain Ranch State Park, Cathedral Gorge State Park and Lake Tahoe - Nevada State Park.

Nevada’s cost of living is 4% higher than the national average, but the state is still considered a relatively affordable place to live, especially compared to California. And the state is tax-friendly, with no income taxes, no estate or inheritance taxes and low property taxes.

Who Is Considered A First-Time Home Buyer In Nevada?

A first-time home buyer is anyone who hasn’t owned a home in the last three years, including investment properties and vacation homes. If you’re a first-time home buyer in Nevada, you may qualify for certain loans and down payment assistance programs.

Down Payment Assistance And First-Time Home Buyer Programs In Nevada

First-time home buyers in Nevada can take advantage of numerous programs designed to make homeownership more affordable. As a first-time home buyer, you may be able to find low-interest rate loans and assistance with your down payment.

Home Is Possible For Nevada First-Time Home Buyers

The Home Is Possible program offers loans with competitive interest rates and interest-free down payment assistance. This statewide program provides down payment assistance for up to 4% of the total loan amount. And the assistance is forgiven after 3 years if you stay in your home.

To qualify, you must be a first-time home buyer with a minimum credit score of 660. You also need to meet the maximum purchase price and income limits, which vary by county. The house has to be your primary residence, and a home buyer education course is required.

Home Is Possible For Heroes

If you’re a veteran or active duty servicemember, you may qualify for the Home Is Possible for Heroes program. This program offers 30-year mortgages with below-market rates, and the loan can be combined with down payment assistance.

To qualify, you must be a first-time home buyer who is either an active-duty service member, a veteran who was honorably discharged, or a member of the National Guard. You must have a credit score of 640 or higher, and a home buyer education course is required.

In addition, you must meet the income limits set depending on your county. And you must plan to use the home as your primary residence.

Home Is Possible For Teachers

The Home is Possible For Teachers program provides down payment assistance to public school teachers living in Nevada. After paying a one-time fee of $755, you could receive up to $7,500 which can be put toward a down payment or closing costs.

You must be a licensed, full-time K-12 public school teacher living in Nevada, and your annual income must fall below $105,000. This program is only available for government-backed loans, so you can’t take out a conventional loan. There are no first-time home buyer requirements to qualify.

Home At Last™

The Home At Last program provides down payment assistance to qualifying home buyers. The loan is given as a 3-year, interest-free second mortgage, and it’s forgiven after 3 years of living in the home as your primary residence.

There are no first-time home buyer requirements, and no purchase price limits to qualify. But you do have to work with a participating lender and complete a free online home buyer education course.

Mortgage Credit Certificate (MCC)

A Mortgage Credit Certificate (MCC) is a federal income tax credit equaling 40% of the interest paid on your mortgage, up to a maximum of $2,000. The savings will continue each year, depending on how much interest you paid on your home loan.

An MCC is available to first-time home buyers and veterans looking to purchase a home in Nevada. You also must meet the maximum income and home price limits.

USDA Rural Development

The USDA Rural Development program helps low- and very low-income borrowers find affordable housing in Nevada. The program provides payment assistance which will temporarily reduce your mortgage payment. The exact amount you receive will depend on your family’s gross adjusted income.

To qualify, you must show that you don’t have safe and sanitary housing and are unable to obtain a loan elsewhere. And you can’t have been suspended or disbarred from participating in government-backed loan programs.

Grants For First-Time Home Buyers In Nevada

Here are some grants that are available to first-time home buyers in Nevada: 

• Affordable Housing Trust Fund: This state-funded program helps Nevada residents obtain affordable housing. If you meet the income limits, the funds can be used to purchase a primary residence.
• National Housing Trust Fund: The National Housing Trust Fund is funded annually by the U.S. Department of Housing and Urban Development (HUD). Nevada is required to use at least 10% of the funds for homeownership. This assistance can be provided through grants and deferred payment loans.
• Emergency Solutions Grant: This grant is designed to help individuals who are at risk of homelessness find permanent housing.
• Workforce Initiative Subsidy For Homeownership (WISH): The WISH program provides down payment assistance to Nevada residents. If you meet the income requirements, you could receive up to $22,000 in WISH grants.

Additional Tips For Nevada First-Time Home Buyers

Buying your first home is a big step, and it can be hard to know how to get started. If you’re a first-time home buyer in Nevada, here are some additional tips to consider.

Consider Current Mortgage Rates

Whenever you’re considering buying a home, it’s a good idea to think about the current mortgage rates. The interest rate you receive will affect your monthly mortgage payment and how much you end up paying over the life of the loan.

Mortgage rates are determined by the Federal Reserve, the bond market, inflation and the state of the economy. However, your personal interest rate will be influenced by your credit score, down payment, and repayment terms.

Research Loan Types

Once you understand what type of mortgage rate you can expect to receive, it’s time to research different types of loans available to first-time buyers. Conventional loans aren’t backed by the government and will be either conforming or non-conforming.

FHA loans are backed by the Federal Housing Administration (FHA), and come with low credit and down payment requirements. If you’re a veteran or active duty service member, a VA loan may be a good choice — these loans come with competitive interest rates and no down payment requirements.

And finally, USDA loans are designed to help low-income borrowers looking to move to a qualified rural area. These loans come with flexible credit requirements and no down payment is required.

Prepare Your Credit

The exact credit score required will vary depending on your lender and the type of loan you apply for. But most of the programs outlined in this article require a minimum credit score of 640. And raising your credit score will help you secure a lower interest rate and better repayment terms.

To get your credit mortgage-ready, focus on paying your bills on time so you don’t have any negative marks on your credit score. And paying down any high-interest credit card debt will improve your credit utilization rate, which can also raise your score.

Look Into Federal Programs

There are numerous federal programs available for first-time home buyers across the country. For instance, the Good Neighbor Next Door program is available to law enforcement officers, firefighters, emergency medical technicians, and teachers. Eligible borrowers who are willing to move to a HUD-designated revitalization area will earn a 50% discount on their homes.

There are also federal loans, tax credits, silent second mortgages, and grants available. Spend some time researching programs that might be available to you.

The Bottom Line

With the right tools and resources, buying your first home doesn’t have to be overwhelming. If you’re ready to learn more, you can start the approval process with Rocket Mortgage^Ⓡ today.