Nevada First Time Home Buyer Down Payment and Mortgage Assistance Programs

1. Nevada Housing Division
   • First Time Home Buyer Program-mortgage interest rates
   • Down Payment and Closing Cost Loan Program
   • Contact Information for Nevada, Department of Business & Industry, Housing Division
   • Steps you need to take to obtain first time home buyers assistance
2. HOME Investment Partnership Program (HOME)
3. Please read our Las Vegas Real Estate Blog and discuss all related topics in our Las Vegas real estate and mortgage forum.

Nevada Housing Division

The Nevada Housing Division First Time Home Buyer Program offers below-market fixed interest rate 30 and 40-year loans to low and moderate income first time home and condo buyers, with additional assistance available for down payment and closing costs.

1. First time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years.
2. The maximum gross income for the applicants must fall within the Maximum Income Limits set by NHD. Currently, as of 7/10/2007 the limit is $72,120.00 for one or two persons and $84,140 for three plus persons in Clark County.
3. The purchase price of the residence you wish to buy may not exceed the Maximum Purchase Price Limits for the area in which it’s located. The maximum purchase price is $360,000 for Las Vegas and Clark County, Nevada.
4. Applicant's assets, including without limitation, may not exceed 50% of the purchase price of the residence being purchased, unless disabled or elderly and such assets are the primary source of income.
5. Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
6. Credit must meet the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
7. Requires a home buyer to successfully complete a First Time Home Buyer Education Course. We have attended two of such courses and highly recommend them.
8. If purchasing in a Targeted Area there are no restrictions on former home ownership.
9. Important: There is a Recapture Tax Penalty if you sell or otherwise dispose of all or any part of your interest in your residence within nine (9) years from the closing date of your Mortgage Loan, you may be required to pay federal income taxes for the taxable year in which you dispose of your interest in your residence in addition to the federal income taxes normally attributable to any gain recognized on the sale or disposition of your residence.

First Time Home Buyer Program-mortgage interest rates

These rates vary and as of 7-10-2007 the interest rates are:

• 6.150% (30-year first mortgage loans)

1. 6.250% (40-year conventional first mortgage loans)

Nevada Down Payment and Closing Cost Loan Program

The Nevada HD Down Payment and Closing Cost Loan Program provides up to $12,500 in assistance at a fixed interest rate (1.00% below that of the first loan) 20-year loan. These rates vary and as of 7-10-2007 the interest rates are:

1. 5.150% (20-year amortization associated with 30-year first mortgages)
2. 5.250% (20-year amortization associated with 40-year conventional first mortgages) 

There is an additional restriction to qualify for the down payment assistance. The applicant’s assets are restricted, after closing, to $5,000 including, without limitation, cash, savings accounts, stocks, bonds and equity in real property.

Contact Information for Nevada Department of Business & Industry, Housing Division

Southern Nevada Office, 1771 E. Flamingo, Suite 103-B Las Vegas, Nevada 89119 Tel. 702-486-7220, Fax. 702-486-7227.

Steps you need to take to obtain first time home buyers assistance

1. Prequalify for a loan. Participating lending institutions process all NHD loans. First, select a participating lending institution (see web-site).
2. Attend a First Time Home Buyer Education Class.
3. Locate an affordable residence.
4. Enter Into a real estate purchase contract.
5. At this point, you can formally apply for an NHD loan through a participating lending institution.

HOME Investment Partnership Program (HOME)

HOME is a federally funded, large-scale program for affordable housing. HOME funds may be used to develop and support affordable rental housing through acquisition, new construction, reconstruction, moderate or substantial rehabilitation.

Home Buyer Assistance under HOME

1. Funds must be used to purchase a primary residence. However, if you presently own a home, disposition of title must be concurrent with, or prior to, close of escrow for the new property (local jurisdictions may restrict funding for first-time homebuyers only).
2. Property must be owner-occupied (property may not be sub-leased).
3. Available only for dwellings which qualify as real property (i.e., mobile homes must be affixed to a foundation).

For more funding information, please contact Clark County Community Resource Management   (702) 455-5025

HUD requires Realtor participation, we will guide you through the first time home buyer programs.