|First Home Targeted||4.125%*||4.750%*|
|Homebuyer Assistance (HBA)||4.875%* - 1st loan|
1.000%* - 2nd loan
|5.500%* - 1st loan|
1.000%* - 2nd loan
Last changed 05/27/22 at 9:00 a.m
*This is not an advertisement for credit as defined in Reg.Z; contact a participating NIFA lender for Annual Percentage Rate (APR) information. Rates are subject to change without prior notice.
At NIFA, we help Nebraskans purchase their own home. To do this, we offer a variety of NIFA loan programs.
Individuals who haven’t owned and occupied a primary residence within the past three years, are considered a first-time homebuyer. Even if a home was owned years ago, but has been occupied by renters for three or more years, to us that's still considered a first-time homebuyer.
Potential buyers do not need to be a first-time homebuyer if:
Note: There are some situations when NIFA may grant an exception to the first-time homebuyer requirement. If one of these situations apply, a Participating Lender will submit documentation to our office for review during the loan application process:
NIFA is committed to helping homebuyers get into their new home with a great, low interest loan, and minimal hassle.
All NIFA loan programs have maximum household income limits based on the home’s location and household size. NIFA’s program eligibility includes the income of any adult member who will reside in the home and will be a borrower, co-borrower or non-borrowing spouse. Note: Income from other adult occupants is only included when the occupant will have an ownership interest in the home.
This includes, but is not limited to, base pay, overtime, commissions, bonuses, tips, self-employed income, social security, disability, unemployment, child support, alimony, part-time income and interest income from assets over $5,000.
NIFA will use your current monthly household gross income and will project it over 12 months. This calculation method is only used by NIFA to determine program eligibility. In most cases, your Participating Lender will use a more conservative underwriting approach for income to qualify you for the loan.
Homes in Nebraska are eligible, subject to the following purchase price limits:
|Non-Target Area||Target Area|
|Number of Units||New & Existing||New & Existing|
You also must occupy the home as your primary residence within 60 days of the loan closing. For 2-4 units, NIFA will include net rental income in your total household income. If you have 2-4 units, they must be at least five years old unless the unit is a duplex located in a target area. If you are buying a home from a relative, the greater of the purchase price or appraised value cannot exceed the maximum limit.
In addition to NIFA's program eligibility requirements, credit underwriting guidelines also apply. These guidelines include minimum credit scores and maximum debt-to-income (DTI) ratios.
Participating Lenders use a credit score to determine the creditworthiness of a borrower. The DTI ratio calculates by taking your total monthly expenses and dividing them by your total monthly gross income.
Conventional and Government Loans: The minimum credit score requirement is 640 with a maximum total DTI ratio of 45%. If your credit score is 660 and above, NIFA will allow a maximum total DTI of 50%. If your Participating Lender needs to use manual underwriting guidelines to approve the loan, the minimum credit score and maximum DTI varies depending on the type of loan. If you do not have a credit score, you may still qualify for a NIFA loan.
Participating Lenders are required to determine if a borrower meets all NIFA program eligibility and credit underwriting guidelines.
Buying a home can be so overwhelming which is why we require all occupying borrowers that are repaying the loan to complete an approved homebuyer education class before closing. From one of these classes, a first time homebuyer will gain valuable knowledge on the loan process, terminology, budgeting, tips for selecting a real estate agent, home inspections, home maintenance and much more.