First-Time Home Buyer Programs in Nebraska

Nebraska Investment Finance Authority (NIFA) Programs:

First Home Program:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas.
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, USDA, or conventional) with below-market rates; can be paired with down payment assistance.
Requirements:

• Income must not exceed county-specific limits (e.g., $114,240 for a 1-2 person household in Douglas County as of 2025).
• Minimum credit score of 640 (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required for first-time buyers.
• Purchase price limit of $481,000 (non-targeted areas) or $587,000 (targeted areas).

Homebuyer Assistance Program (HBA):

Benefits: Offers up to 5% of the purchase price (max $25,000) as a 0% interest second loan (repayable over 10 years) for down payment and closing costs; available with NIFA first mortgages.
Eligibility: Must use a NIFA first mortgage; income and purchase price limits apply (same as First Home).

Military Home Program:

Description: Provides a 30-year fixed-rate mortgage with a 0.5% lower interest rate for veterans, active-duty military, or reservists; combinable with HBA assistance.
Requirements: Must meet First Home income and purchase price limits; proof of military service required (e.g., DD-214 or active-duty ID).

Local Programs:

Omaha

Omaha Down Payment Assistance: Offers up to $20,000 as a deferred loan (0% interest, due upon sale or refinance) for first-time buyers; income must be at or below 80% AMI (e.g., $69,700 for a family of four).

Lincoln

Lincoln First-Time Homebuyer Program: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for down payment and closing costs; income capped at 80% AMI; targets low-income neighborhoods.

Grand Island

Grand Island Homebuyer Assistance: Offers up to $10,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• Mortgage Credit Certificate (MCC): Provides a federal tax credit of up to 30% of annual mortgage interest (max $2,000 yearly) for first-time buyers; fee applies; combinable with NIFA loans.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Nebraska areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.