Many people dream of someday owning a home, but saving up for a down payment or securing a mortgage can present enormous challenges to renters. However, first-time buyer programs provide a path to homeownership that many people don’t know about. With mortgage rates at historic lows and Las Vegas home prices still below previous highs, it’s a great time to enter the market.
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Las Vegas residents will have a number of programs to choose from when buying their first home. Whether you need help with your down payment or closing costs, are a teacher or have served in the military, or want to lease to own, there is a program for you.
5 First-Time Homebuyer Programs in Las Vegas
Homebuyer programs can make it easier for first-time or second chance homeowners to get into a house.
1. Down Payment Assistance Grant
Launched in 2014, the Nevada’ Housing Division’s (NHD) Home is Possible Down Payment Assistance Program offers buyers a non-repayable grant of 4% of the value of a 30-year government-backed mortgages, and 5% for conventional loans. Qualifying homes must be the buyer’s primary residence and must be priced under $400,000.
Buyers must pay a one-time fee of $675 and have a maximum qualifying income of $98,500. They must also meet government or private lender qualifications, have a minimum credit score of 640, and must take a homebuyer education course. The HIP grant has no asset limits and is open to second-chance buyers.
Related: Best Time to Buy a House for the Very First Time
2. Closing Cost Program
The HIP grant can also use it to cover closing costs.
3. Mortgage Credit Certificate Program
NHD’s Mortgage Credit Certificate Program gives buyers buyers an annual federal income tax credit equal to a 30% of the interest paid on their mortgage. Average yearly savings equal $2,000, and any remaining interest is tax deductible. Buyers who combine this with a HIP grant can save a further $400.
This program is open Nevada buyers who are purchasing their first home, previous homeowners who have not owned a house for three years, and qualifying veterans. Buyers must also meet qualifications for government-backed and conventional loans. There is a $300 lender fee, which is waived for veterans, and a $795 program fee.
Related: Buying a Home With Poor Credit: What You Need to Know
4. Lease To Own
Housing for Nevada’s Home Today program allows boomerang buyers to purchase a home without requiring a mortgage or large down payment. There is no waiting period for foreclosures, short sales or other derogatory events. The program covers homes between $150,000 to $250,000 and requires a 3% down payment and transaction fee or a minimum of $4,500 and $5,900, respectively. In addition, 10% is added to the home value at sale, and the price of the home increases 2% annually.
5. Home is Possible for Veterans and Teachers
NHD’s HIP for Heroes Program allows active duty military, honorably discharged veterans, and surviving spouses to obtain below market fixed 30-year mortgages. Buyers must meet the same qualifications as the HiP grant.
NHD’s HIP for Teachers Program offers low-interest 30-year loans and $10,000 in bonus money to full-time K-12 public school teachers in Nevada, usable toward down payment or closing costs.
There are plenty of opportunities for first-time buyers in Nevada to get into a house. Contact Kym E Booke today to get started on your search!
