Home is possible down payment assistance
Are you trying to buy a house but short on cash for down payment? You’re not alone.
Whether it’s down payment or closing costs, it’s not unusual to find many first time home buyers that are in need of help when buying their first home.
Home is possible is a down payment assistance or “grant” program provided by Nevada Housing Division for all Nevadans for this sole purpose. To help first time home buyers, veterans, teachers, and anyone who qualifies.
Furthermore, home is possible can be utilized for non first time home buyers as well, as long as you do not have another house under your name at time of closing (when you close on a new house using this program).
This opens doors to many more homeownership possibilities for Nevadans. However, keep in mind that program does have some strict rules that you may not qualify for.
Home is possible key benefits and requirements
|Key Benefits||Program Requirements|
|30 year fixed interest rate||Minimum credit score of 640 across all programs|
|Don’t have to be a first time home buyer||Qualifying income on mortgage application must be below|
|Grant is forgivable 2nd mortgage ranging from 3 – 30 years||Must be the only house you own or on title at time of closing|
|Available state wide||Must be primary residence|
|Only on existing homes (no new house)||Home buyer education course is required|
|Up to 4% assistance for government loans||Income limits for government loans: $98,500|
|Up to 5% assistance for HFA conventional loans||Income limits for conventional loans: 80% of Area Median Income|
|Can be used towards down payment or closing costs||Must meet normal government and conventional loan underwriting requirements|
Due to constantly changing market, this information and its guidelines may have changed. Please verify all information with us first before planning to utilize this program.
Home is possible for heroes
Nevada Housing Division offers a separate program for U.S. veterans and active military personnel called Home is possible: Heroes.
This program doesn’t offer any down payment assistance but offers a very favorable interest rate even if you have 640 credit score.
Home is possible for teachers
Teachers in Nevada also gets a separate program under Home Is Possible umbrella. It’s called, you guessed it, Home is possible: Teachers.
For teacher’s program, they do receive up to $7,500 assistance unlike Heroes program above. That may not be much but it offers again a very favorable interest rate even at 640 credit score.
Why it may not be for everyone
Despite the program’s benefits to many, it may not be for everyone as it does have some drawbacks for those well qualified borrowers.
- Interest rates are pre-set by the assistance provider, not the lender. There is no option to buy down the rate.
- If you have good credit and have even just 3% – 5% down payment, your interest rate will be much better with regular FHA or Conventional loan most of the time.
- Grant is a 0% interest forgivable second mortgage ranging from 3 years to 30 years depending on the program. This means if you sell your house or refinance your home, you’ll have to pay back the remaining balance of grant you received back to provider. (amount you owed will be reduced every month until agreed term)
While utilizing down payment assistance program for your home purchase may be an attractive option, you should compare it to regular FHA and Conventional loan. You may be surprised to find that often times “free” is not really free and exploring your home loan options is an important part of your home buying journey.
If you’d like to learn more check out: https://www.homeispossiblenv.org