You don’t necessarily have to be a first-time home buyer to qualify for the best of these awesome Nevada first-time home buyer programs in 2019
The Nevada first-time home buyer programs in 2019 offer below-market fixed interest rate mortgage loans and grants to help low and middle-income buyers (those making less than $98,500 per year in a few cases) become home owners. They help Las Vegas first-time home buyers or repeat buyers with down payment and closing costs which in some cases will be forgiven.
In this page we will discuss who can qualify for Nevada first-time home buyer programs and the majority of Las Vegas home buyers do. Then we explain benefits and requirements.
Definition of a first-time homebuyer :
While the definition of the first-time home buyers by HUD has been “anyone who has not owned a home in the last three years, or those who have been displaced due to divorce or legal separation”.
The requirement for not owning a home for the past 3 years has been withdrawn for Home is Possible and Home is Possible for Heroes and Teachers. The only requirement is that the applicant doesn’t own a home at the time of closing. However the last 3 programs still require it.
Other requirements that all programs have in common is taking a Las Vegas first-time homebuyer class, and completing the HUD-approved First-Time Home Buyer Education Course. Then they are assigned a certified housing counselor who will guide them. Additionally, applicant must use the home as a primary residence and obviously must meet standard underwriting requirements.
Nevada First-Time Homebuyer programs-Federal:
Given that first-time home buyers who are seeking down payment or mortgage assistance rarely can afford a 20% down payment, the Federal Government has provided some remedies for this situation.
However, given that we are only concerned with Las Vegas, we will only discuss Greater Las Vegas first-time home buyer programs in 2019, so we will not discuss the USDA loan that applies to rural areas.
FHA loans are distributed by the third-party banks but are backed by FHA. The required down payment is 3.5% with the credit score of 580 or more. Read More Those with a lower FICO score need higher down payment. The bad part is that the borrower has to pay Private Mortgage Insurance for the life of the loan. So, the borrower may be better off switching to a conventional mortgage after the home equity reaches 20% of the home value.
VA loans are backed by the Department of Veteran Administration (VA) to help out US military veterans become home owners. This loan has two big advantages over the FHA loans. Read More One is that most Veterans do not have to put down any down payment nor pay the costly Private Mortgage Insurance (PMI) for the life of the mortgage either. The closing costs are lower as well, however a fee has to be paid to the VA.
Fannie Mae and Freddie Mac
If first-time homebuyers meet the requirements set by Fannie Mae or Freddie Mac, they can get a mortgage with a 3% down payment. However, in this case the PMI is cancellable when the home equity reaches 20%.
Nevada Housing Division Las Vegas first-time home buyer programs
The main program that has survived cuts in Nevada first-time home buyer programs in 2019 is Home is Possible which comes in 4 flavors.
Home is Possible
Home is Possible for Nevada is currently the best program and offers 5% of the loan value which is usable for down payment and/or closing costs and forgivable after only three years if the applicant stays in the home.Read More
Home is Possible is a permanent statewide program that offers an attractive 30-year interest rate.
There is no first-time home buyer requirement here and all home buyers are welcome, however they may not own a home at the closing time and are required to live in the home as the primary residence.
For government loans (FHA, USDA, VA), the qualifying income must be below $98,500 but for conventional loans the income limit is $70,100.
Home price should be less than $484,350.
Minimum credit (FICO) score of higher than 640.
One-time application fee of $675.
Home is Possible for Heroes
Another statewide program for US Military Veterans which offers a below-market fixed interest rate 30-year loan that reduces the monthly mortgage payment. It can be combined with the Mortgage Credit Certificate (MCC) with program fees waived for more savings.Read More
No first-time home buyer requirement but the borrower may not own other property at the time of closing and need to use the house for primary residence.
Qualifying income shall be below $98,500 and home price less than $484,350.
Financing should be through VA or USDA loans only and a minimum FICO score of 640 is required and one-time application fee of $675 has to be paid.
If you’re a veteran who has been honorably discharged, are in the National Guard, are a surviving spouse or you’re on active military duty, Home Is Possible for Heroes was made specifically for you.
Home is Possible for Teachers
Teachers need to hurry up, this program is going away at the end of 2019 but until then it offers $7500 in bonus money to licensed full-time K-12 public school classroom teacher in Nevada.
This program offers below-market fixed interest rate 30-year loans which can be combined with the Mortgage Credit Certificate (MCC) with program fees discounted.Read More
Teacher must live in the home as a primary residence and if they do so for 5 years, the bonus money is forgiven.
Applicants shall finance through a government issued mortgage (no conventional loans) and the minimum credit score of 640 is required for an FHA loan and 640 for VA loan.
Borrower can own a home but should not own one at the time of closing.
The qualifying income has to be less than $98,500 and home price should be less than $485,000.
Teachers need to pay a one-time fee of $675 on the first mortgage.
Home is Possible Las Vegas First-Time Homebuyer programs
Home is Possible for First-Time Homebuyers is by far more stringent than Home is Possible and has less benefits. We recommend that first-time home buyers go with the Home is Possible and avoid this one.Read More
Assistance for up to 4% of the total loan amount which can be used toward down payment and closing costs, which is forgivable after 15 years if the applicant uses the house as the primary residence.
Offers Attractive, 30-year fixed interest rate
The maximum qualifying income is $70,100 for 2 people and $80,615 for 3 people or more and the maximum home price is $271,164, both far less than Home Is Possible.
Applicants must not have owned a home in the past 3 years and must use the home as primary residence.
Applicants must pay a one-time fee of $625 and have a credit score (FICO score) of higher than 660.
Income Tax Credits
Las Vegas first-time home buyers can combine the above programs with the Mortgage Credit Certificate (MCC) for additional savings. First time home owners can get a rebate up to $2,000 annually with a Federal Income Tax credit of up to 30% of the interest paid as well as a standard tax deduction on any remaining interest Read More
The definition of the first-time home owner applies, applicants shouldn’t own a home for the past 3 years unless you are a qualified veteran.
Should meet maximum income and home purchase amount for Cark County, Nevada.
Applicant should finance through FHA, VA loans.
MCC Program has a flat fee of $795 along with a lender application fee of $300. But if combined with Home is Possible a $400 discount is offered.
The City of Henderson Neighborhood Services First Time Home buyer Program
The City of Henderson Neighborhood Services offers an interest-free deferred loan not to exceed 6% of the purchase price or $10,000, whichever is less, which can be used for down payment and closing costs. Additionally, the program will loan up to $35,000 for home repairs. Read More
This is an awesome program for Henderson first-time home owners who want additional savings by purchasing a fixer upper to remodel to their own taste.
Applicants must have lived or worked in Henderson for one (1) year prior to applying and must not have owned a home in the past 3 years.
Must contribute $1,500 of their own funds toward the purchase of the home.
This is no interest charges or monthly payments on the grant, but the loan must be paid back.
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.
Lastly, those who want to take advantage of Las Vegas first-time home buyer programs must use a mortgage officer and Realtor who are certified by the Nevada Housing Division to participate in these programs and we are. If you think you can qualify and the majority of home buyers can, don’t wait, pick up the phone and call us at 702-478-7800.