For the first time home buyer Nevada offers a myriad of programs, incentives, and grants aimed at helping those house hunters purchase their first home here in the Silver State. Whether availing themselves of such federal programs designed to assist the first time home buyer Nevada wants to attract to the great communities and beautiful sights of the Silver State.
From federal programs such as those administered by the Federal Housing Administration and the Veteran Administration, as well as specific state programs like Nevada’s own Home is Possible Down Payment Assistance Program, which aims at helping defray the expenses of coming up with a down payment and closing costs for their new Nevada home.
Indeed, if you are looking at relocating to the Silver State, you have a wealth of resources available that will make that move and transition as hassle free and seamless as possible. Let’s take look at two of the biggest federally backed programs, FHA and VA loans, and then we can explore a uniquely Nevada program designed to help Silver State residents absorb portions of the expense of your down payment and any applicable closing costs.
1. Federal Housing Administration and Affordable Housing
Begun during the height of the Great Depression in 1934, the Federal Housing Administration provided a much needed boost to the housing sector when few banks were issuing loans. More than 80 years later, this government-backed loan is pretty much the same as it was back in the day, and allows qualified homebuyers to purchase moderately priced homes with a low down payment. Indeed, buyers looking to utilize an FHA loan to purchase their new home in Nevada are eligible to pay as low as 3.5% of the loan’s value as a down payment, which is substantially lower than the 10% to 20% down payment requirements that most conforming loans demand.
FHA Loan Requirements
Although government backed, the federal government does not actually loan the money to the would be first time home buyer Nevada is looking to draw within her borders. An FHA guaranteed loan means that in the event that the homebuyer defaults on their loan, the government will step in to cover the loss. This allows those with financial coffers that are not over flowing with an excess of cash to be eligible to secure a mortgage loan. Owing to the secured nature of the loan, the Department of Housing and Urban Development’s Federal Housing Administration has instituted stringent eligibility requirements for participants to the program:
- Minimum credit score of 580
- Minimum down payment of 3.5%
- Debt-to-income ratio of not more than 43%
- Clear CAIVRS report
- Residential restrictions
FHA loans have helped make the United States one of the best-housed nations in the world, and those first time home buyer Nevada is attracting stand to benefit from this very same program that probably helped their own grandparents buy their first home once upon a time.
2. Rewarding our Nation’s Veterans: The VA Loan
Similar to the federal loan guarantees extended to the civilian population, the United States Veterans Administration’s VA loan package targets the housing needs of our nation’s veterans. Since its 1944 inception, the VA Loan program has helped house more than 20 million service members and their families with favorable rates, stringent protections against fraud, and some of the only 0% down on the national and Nevada real estate markets alike. The start of a VA loan package begins with determining your eligibility.
VA Loan Eligibility Requirements
- You have served 90 consecutive days of active service during wartime, or
- You have served 181 days of active service during peacetime, or
- You have more than 6 years of service in the National Guard or Reserves, or
- You are the spouse of a service member who died in the line of duty or service related disability
If you are a veteran living in Nevada and beginning the process of securing your VA loan, your first step is obtaining your Certificate of Eligibility. Obtained through the Department of Veterans Affairs, this formal document is a detailed listing of all your rights and benefits as a veteran of the United States of America.
3. Home is Possible Down Payment Assistance Program
Instituted in the Silver State in 2014, Nevada’s Home is Possible Down Payment Assistance Program seeks to lessen the burden on the first time homebuyer in Nevada who has the money to pay for the upcoming monthly mortgage payments, but lacks the financial wherewithal to swing the down payment for their new home. The grant, which need not be repaid, can cover upwards of 5% of the total loan amount up to $400,000 and must be utilized to cover closing cost and down payment expenditures. The benefits of the program are many:
- No first time buyer requirements
- Available throughout the Silver State
- No asset limits for homebuyers
- Can be combined with Mortgage Tax Credit
- Grant is non-repayable
To be eligible for Nevada’s Home is Possible Down Payment Assistance Program; homebuyers need a minimum credit score of 640 for governmental insured mortgages and 680 for standard conventional loan. Additionally, participants must meet the following requirements:
- Home price below $400,000
- Must be primary residence
- Mandated homebuyer’s education course
- Qualifying income on mortgage application must be below $93,000
There are plenty of reasons to make Nevada your home, and for first time home buyers Nevada offers great programs, incentives, and grants to make that move to the Silver State all that much easier. If you are thinking of making the move to Nevada, make sure to explore all of your financing options to make that dream a reality.
2 Point Highlight
If you are looking at relocating to the Silver State, you have a wealth of resources available that will make that move and transition as hassle free and seamless as possible.
There are plenty of reasons to make Nevada your home, and for first time home buyers Nevada offers great programs, incentives, and grants to make that move to the Silver State all that much easier.
