Overview of Private First-Time Home Buyers Programs & Grants

Overview of private-first time home buyer programs offered by banks

Private first-time home buyer programs are for buyers that do not meet government-sponsored Las Vegas first-time home buyer assistance requirements. These don’t offer as much assistance as government programs but nevertheless offer very good assistance.

The best part of these bank programs is that some pay for private mortgage insurance (PMI) that can save home buyers a few grand every year.

All homes have to be owner occupied (no investors).

Some programs require the first-time home buyer’s to make less than the amounts below which are 80% of the median income for Clark County.

 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

Citibank: Home Run Loan Product

Interest rates comparable to conventional loan rates

Down payments as low as 3%

No mortgage insurance requirement

Products offering the stability of a fixed rate

Flexible credit guidelines

Homeownership education and counseling

Loans up to $424,100 and as much as $636,150 available in some higher-cost areas

1-2 units, condos, co-ops, and PUDs are eligible

Wells Fargo: Neighborhood LIFT Program

Wells Fargo’s Neighborhood LIFT (Let’s Invest for Tomorrow) Program went into effect March 3, 2017. They have different income limits for their program depending on whether the buyer is a military or not.

Non-Military:

 1-4 person 5 person6 person7 person
None military income limits$48,150$52,050$55,900$59,750

Military:

 1-4 person5 person6 person7 person
Military income limits$60,200$65,050$65,900$69,850

You could receive up to $7,500 to be applied to the principal if using an FHA loan. If you use other loan products it can be applied to down payment or closing costs.

The amount you receive is based on the amount you are able to put toward your down payment. Pay particular attention to how one dollar in down payment contribution can get you $1000 in the additional grant.

Non-military contribution and grant:

Down payment by borrower$0-$1500 $1501-$2500 $2501-$5000 Over $5000
Lift Grant $2500 $3,500$6,000$7500

Military contribution and grant:

Down Payment contribution$0-$2500 $2501-5000 Over $5000
Lift Grant$5,000$6000$7500

Program overview:

You must be approved for a first mortgage by Wells Fargo or an approved lender.

If you currently own a home it must be sold before closing.

Grant is forgiven by 1/3rd per year- 100% after three years of occupancy.

If an active military has to transfer 100% grant is forgiven.

Wells Fargo: Your First Mortgage

Wells Fargo has another program called Your First Mortgage. Only a 3% down payment is needed. There are no income restrictions, no First-Time Homebuyer requirements but you can take a First-Time Homebuyer class to receive 1/8 point off your loan.

Low down payment and out-of-pocket costs:

  • Get a conventional fixed-rate mortgage with a 3% down payment.
  • Use down payment and closing cost sources like gift funds and down payment assistance programs.

Flexible income guidelines:

  • Qualify with income from rentals or from someone who lives with you but isn’t a borrower.
  • Qualify with no area median income requirements.

Wells Fargo: My Home Road map

Wells Fargo also has a program called My Home Roadmap for buyers not ready for home ownership yet. They help you with 2 hours of live credit counseling along with 6 months of free credit counseling to help you get mortgage ready.

This program is for customers who have been turned down due to bad credit or were just not ready.

This program offers a referral and pays for up to 2 hours (or $250) of counseling with a certified credit counselor who provides customers with options and support on the path to homeownership.

Conclusion:

Obviously, those who can meet the qualifications for the Nevada first-time home buyer programs can get more assistance than private programs. However, some of these come with no income restrictions and in some cases, you don’t even have to a first-time homeowner.