Nevada Housing Division (NHD) First Time Home Buyers Assistance
- Nevada Housing Division
- HOME Investment Partnership Program (HOME)
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.
Nevada first time home buyers have to meet 2010 income guidelines for the down payment assistance programs.Greater Las Vegas Area Median Income
- First time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years.
- The maximum gross income for the applicants must fall within the Maximum Income Limits set by NHD.
- 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.
- 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.
- Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
- Credit must meet the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
- Requires a home buyer to successfully complete a HUD approved First Time Home Buyer Education Course. We have attended two of such courses and highly recommend them.
- If purchasing in a Targeted Area there are no restrictions on former home ownership.
- 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.
As of 7-10-2010 the interest rates are:
- 4.750% (30-year first mortgage loans)
- 7% second mortgage
The Nevada HD Down Payment and Closing Cost Loan Program provides up to $4,500 in assistance at a fixed interest rate 20-year loan.
- 7% (20-year amortization associated with 30-year 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.
- Prequalify for a loan. Participating lending institutions process all NHD loans. First, select a participating lending institution (see web-site).
- Attend a First Time Home Buyer Education Class.
- Locate an affordable residence.
- Enter Into a real estate purchase contract.
- At this point, you can formally apply for an NHD loan through a participating lending institution.
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
- 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).
- Property must be owner-occupied (property may not be sub-leased).
- Available only for dwellings which qualify as real property (i.e., mobile homes must be affixed to a foundation).
HUD requires Realtor participation, we are approved for these programs and will guide you through the first time home buyer programs.
Interest rates and down payment assistance amounts get changed overtime, for the most current info visit Nevada Housing Division First Time Home buyer Program