home is possible

Home is possible

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 BenefitsProgram Requirements
30 year fixed interest rateMinimum credit score of 640 across all programs
Don’t have to be a first time home buyerQualifying income on mortgage application must be below
Grant is forgivable 2nd mortgage ranging from 3 – 30 yearsMust be the only house you own or on title at time of closing
Available state wideMust be primary residence
Only on existing homes (no new house)Home buyer education course is required
Up to 4% assistance for government loansIncome limits for government loans: $98,500
Up to 5% assistance for HFA conventional loansIncome limits for conventional loans: 80% of Area Median Income
Can be used towards down payment or closing costsMust meet normal government and conventional loan underwriting requirements
Home is possible key benefits and requirements
NOTE:

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.

Contact us to verify

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.

  1. Interest rates are pre-set by the assistance provider, not the lender. There is no option to buy down the rate.
  2. 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.
  3. 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)

Read up on FHA Loan Requirements and Conventional Loan Requirements

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

Calvin Kim
Local Las Vegas loan officer who is passionate about funding your American dream. Serving the local market since 2003, my number one goal is to ensure you choose the right loan program and offer you the best mortgage rate possible. Building lasting relationships found on trust, honesty and reliability.

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