The state of Nevada has home loan programs that you might not be aware of – so I am writing to share the information with you.
On December 5, 2016 the state implemented a home loan program to help recruit and retain teachers in the public school system. In a year almost 400 have bought home through the program – a very impressive amount. The idea is when teachers become a homeowner that adds to the stability of them being in the school district and not leaving in a couple of years.
Teachers that have an income below $98,500 per year are eligible for a below market 30-year fixed income rate loan that is currently at 3.625 percent with $7,500 that can be used for down payments and closing costs. Plus if the teacher lives in the home for over 5 years, they do not have to repay the $7,500- if not they have to pay a prorated amount.
The teacher program is part of a public-private partnership that has no state or federal tax funds involved. The lender will make the loan and give assistance to the buyer at closing. Then the lender sells the loan to U.S. Bank, the master servicer of this type of loan.
There is also the Home Is Possible program that was started in 2014. Over 14,000 families statewide have helped to become a homeowner through this program. It helps homebuyers just like you to get up to 5% of the home loan value. That's thousands of dollars for a one-time fee of just $675. When you qualify, you can use that money for your down payment or closing costs. Forgivable after three years (if your stay in your home). You can get an attractive 30-year interest rate plus there is no first-time homebuyer requirement. There is also financing available for manufactured homes.
Program requirements are a qualifying income below $98,500 and the home you are purchasing is priced below $400,000. You must have a credit score of 640, take a homebuyer education course and you must live in the home as primary residence. You also must meet standard underwriting requirements.
Last spring the Nevada Housing Division started a program for those that earn 80 percent or below the median income. They will provide $1500 for down payments and closing costs. At this time about 30 people are participating in this program.
The need for all these assistance programs stems from the rise of home prices – pricing some people out of the market, plus we have a shrinking inventory that makes the home market more competitive.
There are a few other programs from banks such as Wells Fargo’s Neighborhood Works America and a program from Federal Home Loan Bank through Charles Schwab. The city of Henderson has a program for lower-income households – applicants must live or work in Henderson for a year and not have owned a home in three years.
Bottom Line – There are a lot of programs to help you become a homeowner. If you have questions or want more information please contact us at The Smith Team.
Keep in mind that whether you are interested in buying a home or listing a home, a Realtor should represent you– this person is working for your benefit and will help you navigate through the buying or selling process. I have thirteen years in New Home Sales and fifteen years in General Real Estate sales!
I Sell Las Vegas! www.iselllasvegas.com
Thanks and make it a terrific day…………Robin