Nevada First Time Home Buyer Programs and Grants-Overview

About overview of Nevada First-Time Home Buyer Programs and Grants

The Nevada First-Time Home Buyer Programs offer below-market fixed interest rate mortgage loans and grants. These programs are designed to help low and moderate buyers with down payment and closing costs which in some cases will be forgiven.

Greater Las Vegas first time home buyer qualifications:

All-Greater Las Vegas first-time buyers who want to use government programs need to meet the requirements below to qualify:

A: Definition of the first-time homeowners by Department of Housing and Urban Development or HUD is needed.

“Anyone who has not owned a home in the last three years, or those who have been displaced due to divorce or legal separation”

B: All these programs are for owner-occupiers, real estate investors are excluded

C: Nevada first-time home buyers have to meet 2017 income guidelines for the down payment assistance programs and cannot make in excess of the chart below based on family size.

HUD 80% of median income for Clark County Nevada, including Las Vegas, Henderson, North Las Vegas and Unincorporated Clark County, Nevada.

 1 person2 Persons3 Persons4 Persons5 Persons6 Persons7 Persons
80% Median Income$33,750$38,550$43,350$48,150$52,050$55,900$59,750

D: Applicants have to use a Realtor and mortgage officer who is certified to work with these programs and we are.

E: Requires a home buyer to successfully complete a HUD-approved First-Time Home Buyer Education Course. Then they are assigned a certified housing counselor who will guide them.

Every year we have to re-take the course to maintain our certification and can’t overemphasize the importance of the class and counseling sessions and their educational value.

Other program related qualifications:

The majority of government programs offered have most of the requirements below, however private Nevada first-time home buyer programs have fewer requirements. If there is an exception, we will note it under the program.

  1. The maximum gross income for the applicants must fall within the Maximum Income Limits set by Nevada Housing Division (NHD)
  2. 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.
  3. Income must support the repayment of the loan pursuant to the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.
  4. Credit must meet the underwriting criteria applied by FHA, VA, RHS, or Fannie Mae, as applicable.

Las Vegas Nevada first-time home buyers should buy rather than renting

Avoiding the Re-Capture Tax

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 a specified time 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.

Making offers and financing the property

Nevada first-time home buyer deals take longer to close which seems to be a disadvantage if your Realtor neglects to do one thing listed below.

Applicants who have passed all stages and become ready to buy are already approved for the loan and final approval is contingent on appraisal. This removes much of the uncertainty about the outcome and makes it as close to a cash offer as a financing deal can be.

Your Realtor should make sure that the seller and his listing agent understand this, which should more than make up for longer escrow time and even get a discount.

Private and government-sponsored Nevada first-time home buyer programs:

In the next pages, we discuss government-Sponsored Las Vegas first-time Home Buyer Programs as well as private first time home buyer programs which have fewer restrictions.