Is now the right time to buy? Do I qualify? Where do I even start?
The truth is, homeownership isn’t a one-size-fits-all goal. Renting continues to play a critical role in Nebraska’s housing landscape, and for many people, affordable rental housing is the right choice whether it is a temporary solution or a long-term option. But when the timing is right to buy, having the right information and support can make all the difference.
That’s where NIFA fits in.
Is This a Good Time to Buy a Home in Nebraska?
The “right time” to buy a home depends less on the calendar and more on your personal readiness. Many successful homebuyers start by asking:
- Can I comfortably afford the monthly payment?
- Have I reviewed my credit and finances?
- Do I plan to stay in this home for several years?
- Am I ready for the responsibilities of ownership?
One helpful place to start is estimating what a monthly mortgage payment could look like before you talk with a lender.
NIFA offers a mortgage calculator for Nebraska homebuyers to help you better understand the costs that come with buying a home. By entering a home price and down payment amount, the calculator provides an estimated monthly payment with an itemized breakdown. This includes principal and interest, along with estimates for costs buyers often hear about for the first time, such as private mortgage insurance (PMI), property taxes, homeowners insurance, and homeowners association (HOA) fees.
Not every cost applies to every buyer or every home. The calculator allows you to adjust loan details to reflect your situation more accurately and explore different buying scenarios. While it’s not a final quote, it’s a helpful planning tool for anyone considering homeownership in Nebraska.
Try NIFA’s mortgage calculator to estimate your monthly payment and explore different home price and down payment scenarios before you speak with a lender.
If those questions are starting to feel manageable rather than overwhelming, you may be ready to explore homeownership options. NIFA’s homeownership programs are designed specifically for Nebraskans who are ready to buy and want affordable loan options.
What Makes NIFA Home Loans Different?
NIFA homeownership programs offer below-market interest rates compared to many traditional loans. What this means for you is you will pay less over the life of your loan when you use a NIFA loan. These programs are available statewide through NIFA-participating lenders and are designed to support long-term success, not just the day you close.
Whether you’re buying your first home, returning to homeownership, serving in the military, or refinancing a current NIFA loan, there may be a program that fits your situation.
Loan Options Offered by NIFA
First Home Program
Are you a buyer who has not lived in and owned a home in the past three years? The First Home Program may be for you if you are ready to purchase and do not need down payment or closing cost assistance.
Homebuyer Assistance Program
Are you ready to buy a home but don't have downpayment or money for the closing costs? With the Homebuyer Assistance Program, NIFA can help you cover those costs with a second mortgage loan with an interest rate of 1%. As with the First Home Program, you must not have lived in and owned a home in the last three years.
Welcome Home Program
The Welcome Home Program is a flexible option that allows you to be a first-time OR a repeat homebuyer. Income and purchase price limits apply, making it a good fit for those who may not qualify for other programs but are ready to buy.
Refinance Home Program
Do you need to refinance the home that you purchased with a NIFA loan and down payment assistance? If so, the Refinance Home Program may be a good option for you. The program is designed for current NIFA homeowners who do not have enough equity in their home to pay off the down payment assistance loan. You must be living in the home purchased with NIFA financing to apply. If you qualify, you will continue to benefit from the affordable lending terms.
Military Home Program
The Military Home Program is for active-duty military members, reservists, and qualified veterans.
- Active military members are eligible if they have not lived in and owned a home in the last three years
- Qualified veterans and eligible spouses are not required to be first-time buyers
- A DD214 is used to determine eligibility
- If a VA loan isn’t an option, FHA or USDA Rural Development loans may be used
First Home Targeted (select counties)
You could receive an even lower interest rate to buy a home in certain areas! The goal of the First Home Targeted Program is to increase access to homeownership in specific areas set by the federal government. Targeted census tracts are located within sections of Adams, Douglas, Jefferson, Lancaster, Saline, and Scotts Bluff counties.
Location Check Tip:
Not sure if a home qualifies? Your lender or real estate agent can confirm through our mapping tool whether a property falls within a targeted census tract. It’s a great question to ask early when you are touring homes.
Terms to Know
If you are new to homebuying, some of the words used in the process can feel unfamiliar. Here’s a quick guide to a few common terms you’ll hear along the way.
Principal – is the amount of money you borrow to purchase your home. This does not include interest or fees and is the base amount of the loan itself.
Interest – is what the lender charges for lending you the money to buy your home. Your interest rate directly affects your monthly payment and the total amount you pay over the life of your loan.
Down Payment and Closing Costs
Down Payment – is the amount you pay upfront toward the purchase of your home. Your down payment plus the principal of your loan equals the total purchase price of the home.
Closing Costs – are separate from your down payment. These are fees required to complete the home purchase and typically include costs for appraisals, inspections, and title services to finalize and fund your loan.
Escrow Account – when you close on a mortgage, your lender will set up an escrow account. A portion of your monthly payment is deposited into this account to cover property taxes and homeowners insurance when they are due.
With an escrow account, you don’t have to plan for large payments a few times a year or manage payments to taxing authorities or insurance companies on your own. Your lender handles those payments on your behalf using the funds collected from you.
Here is a Simple Checklist to Get You Started
If homeownership is one of your goals this year, here are a few helpful first steps:
- Use NIFA’s mortgage calculator to estimate a monthly payment that fits your budget Review your credit and monthly budget
- Start saving for upfront costs like inspections and moving
- Take a NIFA-approved homebuyer education class
- Talk with a trusted real estate agent
- Connect with a NIFA-participating loan officer to discuss options
These steps can help you feel informed and confident well before you make an offer to buy a home. A new year does not require a new house, but it can be the right time to learn, plan, and prepare.
NIFA’s Role in the Bigger Housing Picture
On the NIFA website, you will find information about all our programs and more. Homebuyer education classes, credit repair resources, participating lenders and realtors and more. Whether you’re buying this year or just beginning to ask questions, NIFA is here to help you make informed housing decisions to live and succeed in Nebraska on your timeline and in a way that fits your life.
Strong Nebraska communities need a full range of housing options. NIFA invests in in the development of affordable rental housing across the state while also providing affordable loan options for homeownership to Nebraskans who are ready to buy. These functions are essential for communities and neighborhoods to thrive.
Sources – NIFA, Zillow and US Bank
