A lot of my clients have been asking me recently about the Nevada Bond Program for first time home buyers.    Last week I attended a seminar last week that went over it's benefits.   This is a statewide initiative offered in every county in the state.

This is a loan program that the State of Nevada is offering first-time homebuyer's where, if the buyer qualifies, the interest rate on a 30 year loan is 5.85% and 5.95% for a 40 year loan. 

This is far below today's market rates.  It's very important that I disclose to you that this loan is not available for everyone and is based on strict qualifying guidelines.

Although there are some strict eligibility requirements, this program may work for many first-time homeowners.  Its important that your first-timers ask about the program when meeting with their lender.  There are 16 participating lenders in Nevada.

Qualification Guidelines for the Nevada Bond Program

1) A first-time home buyer is defined as someone who has not owned or co-owned their own residence within the past three years.   So even if you owned a home a few years back, if its not in the last three you may still qualify.

2) If you are purchasing in a "Targeted Area" there are no restrictions on former home ownership.   Please contact me if you think the home may be in a targeted area.  These are usually areas where this is not as much resale activity and the State wants to stimulate its growth.

3) Total gross household income must fall within the Maximum Income Limits.  In Clark County, if you have a 1-2 person household, it cannot exceed $72,120.  If you have a 3 person or more household it cannot exceed $84,140. 

In Washoe County it can be a bit higher.  In Elko County a bit lower.

4) 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.

Those maxs look like this:

Clark             $360,000.00
Washoe         $429,619.00
Carson City    $358,875.00
Douglas         $429,619.00
Nye               $292,500.00
Elko              $292,500.00
Lyon             $298,125.00
All Others      $242,640.00

5) Assets, including without limitation, may not exceed 50 percent of the purchase price of the residence being purchased, unless disabled or elderly and such assets are the primary source of income.  

This means if you are buying a $360,000 home, you cannot have assets totaling more than $180,000 unless you are disabled or elderly or those assets are what you rely on for your source of income.

6) 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.

This simply means your loan has to be able to be approved by FHA, Fannie Mae, Rural Housing, or VA.

Finally, the program also allows you to get up to $10,000 in down payment assistance from the state if your loan approval requires it.     You will have to pay back that loan as well but it comes an interest rate slightly lower than the other mortgage.

Also, if you require that assistance, you will have to prove that your assets, after closing, are $5,000 or less including, without limitation, cash, savings accounts, stocks, bonds and equity in real property

You will also be required to successfully complete a First Time Home buyer Education Course, which is fairly easy.

This is a fantastic loan program for first-time homebuyers who find themselves unable to qualify because they lack a minimal down payment or because the interest rates of today put the home just out of their reach.

This program offers down payment assistance as well as rates that are not seen in the general market today.

If ypu are a first-time home buyer here in Nevada, and your lender is suggesting a VA, FHA, Rural Housing or Fannie Mae loan for you like MyCommunity, make sure you ask him if you are eligible for the bond program.  It could save you thousands of dollars each year.