Is the Lack of a Down Payment Preventing You From Owning a Home?

Is the lack of money for a down payment preventing you from becoming a homeowner? Through a program with the Nevada Housing Division, we can help. Buying a home requires money for your down payment and closing costs. The Nevada Housing Division First-Time Homebuyer Program offers to low- and moderate-income first time homebuyers fixed interest rates 30-year loans with additional assistance available for down payment and closing costs. The current interest rate is 3.55% for the 30-year fixed rate first and 7% for the $3,000 second designed to help with your down payment and closing costs.

These loans are supported through the sale of bonds. I recently called Nevada Housing to inquire about the availability of funds and stability of the interest rate. There is currently about $7,000,000 available in the fund.

Qualification Guidelines:

·     A first-time homebuyer is someone who has not owned or co-owned their own residence within the past three years. If purchasing in a Targeted Area there are no restrictions on former home ownership.

·     Total gross household income must fall within the Maximum Income Limits set by NHD.

·     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.

·     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.

·     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.

·     Successfully completes a HUD approved in-person 6-8 hour Homebuyer Counseling Course.

We have seen a dramatic increase in interest rates since the beginning of May. The rates for this program have not changed. Not only will the program provide down payment assistance, but it will allow you to qualify for a more expensive home due to the exceptional interest rate.