A first-time homebuyer is just how it sounds, someone who has never purchased a home before but is currently looking to buy! However, even if you have owned a home before but haven’t in the past three years, you have a chance of qualifying for one of these as well. The good news is, there are tons of great programs to help first-time homebuyers out with finding and financing their dream home. And the Nevada Housing Division offers several of these! Read more about what’s available below.
Nationwide Home Loan Programs
For new home buyers with lower credit scores, this is a good program to consider. For people who have credit values of 580 or higher, the federal housing administration offers down payments of up to 3.5%. For lenders with ratings below 500, FHA insures a premium of 10% for a low score. The debt is not included. Mortgage insurance is necessary and cannot be canceled during the life of the FHA loan, it is the best way to achieve a low credit score and low down payments.
This is the best way to get low payments and low insurance premiums. Initially, home buyers are to get a standard home loan with a 3 percent reduction if the mortgage meets the requirements of Fannie Mae and Freddie Mac. They will no longer have to pay mortgage insurance until at least 20 percent has been paid. A minimum credit score of 620 is needed to apply for a traditional mortgage, but a 740 or higher will get you a better interest rate.
These mortgages are offered by the U.S. Department of Veterans Affairs for military members, veterans and surviving wives. Though you may have to pay a VA funding fee, the benefits to this are no minimum credit score or down-payments required.
The USDA house loan is a zero-down loan for rural and suburban house buyers who qualify for the loan. These loans are offered through the U.S. Department of Agriculture by the USDA Rural Development Guaranteed Housing Loan Program. Regional income limitations do exist, so make sure you find out what yours is based on your location. Applicants with credit scores of 640 and above will have an easier time, and those with lower scores will need to meet more stringent requirements to qualify.
Homebuyers in Nevada and elsewhere can be funded through these national programs with low down payments, which is essential to many first-time buyers.
In Nevada’s Home Is Possible Loans and Assistance Programs, first-time homebuyers meeting income and other eligibility requirements will receive 30-year hypothecs at competitive interest rates.
- Too low- to moderate-income lenders, assistance to down payments and closing expenditures are available.
- Lower market interest rates may apply to active military and veterans.
- Teachers may provide up-payment and closing expense assistance of $7,500.
- The number of services has caps on funding.
- Certain programs set house price limits.
- House has to be the main residence in Nevada.
- The minimum credit values vary according to the program
- Programs may be subject to specific requirements.
First-Time Home Buyer Programs in Nevada
Home Is Possible (HIP)
This program offers first-time and repeat homebuyers up to 5% of the loan amount to pay the down payment, closing costs, or both. You don’t have to worry about repaying that money if you keep the home purchased as your primary residence for 3+ years. HIP loans have 30-year terms and competitive interest rates available. To qualify, borrowers must meet income and home-price limits, must have a credit score of 640 or above, pay a fee of $675, and are required to complete a homebuyer education course.
Mortgage Credit Certificate
First-time homebuyers and qualified veterans can apply for a mortgage credit certificate program. This provides annual credit that reduces the federal income tax bill. This credit covers up to 30 percent of the interest paid on the mortgage (as much as $2,000 per year). To secure the credit certificate, you must pay a one-time fee of $795 and complete a homebuyer education course.
Strictly for first-time house buyers and professional veterans, this program combines payment and cost support with a mortgage credit certificate that offers a federal income tax breach annually. HIP Plus provides up to 5% of the loan amount that can be used for the payment, shutdown or combination, which does not need to be repaid. The certificate of mortgage insurance offers an annual tax deduction of up to 30% on interest on mortgage payments that year, or up to $2,000 a year. You will purchase a manufactured house using the HIP Plus System.
Home Is Possible for Heroes (such as Veterans)
A subprogram of Home Is Possible is reserved for veterans and active military personnel. It promises a lower interest rate than that on the market and can be paired with a mortgage loan with the normal $795 fee excluded for the credential. Revenue and price limits are in place with a minimum credit score of 640. Borrowers must take an education course for home buyers. The program covers only government loans and is open to military, honored veterans, members of the National Guard and surviving wives.
Home Is Possible for Teachers
This Home Is Possible program is for licensed, full-time, K-12 teachers at Nevada public schools. It offers a down payment coverage of $7,500, as well as closing costs, which is not required to be reimbursed if the borrower stays in the home for 5 or more years. There are however minimum house prices and income, as well as a minimum credit score of 660 required. Borrowers must take a homebuyer education course. First time purchasers can combine the loan with a certificate of mortgage credit. It has low mortgage rates for payment down and closing cost support.
The home buying process is complex and full of unexpected costs and surprises. It can be stressful trying to secure funding, especially if it is your first go-around. However, the programs we discussed above are amazing options for inexperienced homebuyers, and their offerings can really help you out!