Are you thinking of buying your first home in Nebraska? Would you like a free gift of money to help you purchase that first home? Unfortunately,the state of Nebraska isn’t currently providing direct grant money for its residents who are first time home buyers and need help with the down payment and closing costs. But don’t be discouraged, as there are local programs that do provide grants, there are Federal grants available, and the State of Nebraska has other first time home buyer programs available. The local grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the grant programs available to Nebraska residents.
Nebraska Grants
The agency in Nebraska that provides assistance to the home buyers is The Nebraska Investment Finance Authority. While many states will provide 3% towards the down payment, Nebraska offers a loan program in which you can receive up to 5% of the first mortgage amount to help with down payment and closing costs. To find out more, please visit the Nebraska Investment Finance Authority website page specifically describing all the program. You can read about the various programs offered by going to this website.
Here are brief descriptions of the three main programs for the home buyers in Nebraska:
First Home Plus
The First Home Plus Program provides a low-interest rate first mortgage loan for first-time homebuyers purchasing a home within the State of Nebraska.
You must be a first-time homebuyer; who is someone that has not owned and lived in a home within the past 3 years. There are maximum income and purchase price limits that apply to all homebuyers. You must live in the home as your principal residence.
First Home Focused (Targeted Areas)
The First Home Focused Program provides a low-interest rate first mortgage loan for the buyers purchasing a home in Nebraska that is located within a federally designated target area. You do not have to be a first-time homebuyer if you purchase a home within a target area.
There are maximum income and purchase price limits that apply to all homebuyers. You must live in the home as your principal residence.
The First Home Focused interest rate is subject to change from time to time. Homebuyers have the option of choosing a government or conventional loan product.
Homebuyer Assistance (HBA) Advantage
The Homebuyer Assistance (HBA) Advantage Program combines the benefits of a first mortgage loan with a second mortgage loan for purchasing a home within the State of Nebraska. The second mortgage loan provides down payment and closing cost assistance.
You must be a first-time home buyer; unless the home is located in a federally designated target area or you meet the definition of a qualified veteran. A first-time homebuyer is someone that has not owned and lived in a home within the past 3 years. There are maximum income and purchase price limits that apply to all homebuyers. You must live in the home as your principal residence.
The second mortgage loan provides assistance in an amount up to 5% of the purchase price of the home. Homebuyers must make principal and interest payments on the second loan. NIFA requires the homebuyer to have a minimum investment of $1,000.
To contact the Nebraska Investment Finance Authority:
Lincoln Office (headquarters)
1230 “O” Street, Suite 200
Lincoln, NE 68508-1402
Phone: (402) 434-3900
Toll-free: 1-800-204-6432
Fax: (402) 434-3921
Federal Grants
Besides the state programs, there are federal funds and grants available in Nebraska through the Homes and Communities program of the United States Department of Housing and Urban Development. On their website you’ll find complete grant information, application forms, description of available funds, as well as many other helpful tools.
Every potential buyer should investigate what they have to offer. You can visit the website by going here: US Dept. of Housing and Urban Development. Also, there is a website that has a complete list of all grant programs available through the United States Federal Government: Grants.gov. You should plan to spend the required time investigating to determine how many individual grants they may qualify for. You can visit the website by going to Grants.gov and use their simple search tool to locate more Nebraska first time home buyer grants.
Other Grants in Nebraska
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this website.
Here is the contact information for the HUD office in Nebraska:
Omaha Field Office
Edward Zorinsky Federal Building
1616 Capitol Avenue
Suite 329
Omaha, NE 68102-4908
Phone: (402) 492-3100
Fax: (402) 492-3150
There are also these local programs:
Douglas County Holy Name Housing Corporation, New Community Development Corporation and Omaha Economic Development Corporation, Focus Community Initiative Challenge Grant (GRANT) (402) 451-2939
Grand Island Homeownership Opportunity Program (308) 385-5444
Hastings Southwood Subdivision Down Payment Assistance (DPA) (402) 461-4115
Lancaster County Affordable Homeownership Program (HOP) (402) 467-2371
Lincoln First Home Program (FHP) (402) 477-7181
Multi Counties Blue Valley Community Action Inc Home Ownership Opportunity Program (HOP) (402) 729-2278
Multi Counties High Plains Community Development Corporation Down Payment & Closing Cost Assistance Program (DAP) (308) 432-4346
Multi Counties Northeast Economic Development, Inc. Northeast Regional Down Payment Assistance Program (DPAP) (402) 379-1150
Multi Counties Northern Ponca Housing Authority Down payment Assistance Program (DAP) (402) 379-8224
Norfolk Elkhorn Valley Community Development Corporation Homeownership Opportunity Program (HOP) (402) 379-3311
Omaha Housing Authority Public Housing Homeownership Program (PHHP) (402) 444-3215
