What Is NIFA's Down Payment Assistance? A Plain-English Guide to HBA and WHA

How NIFA's Homebuyer Assistance and Welcome Home Assistance programs work, who qualifies, and what to expect.

For a lot of Nebraska buyers, the down payment is the only thing standing between them and a home. Saving several thousand dollars on top of everyday expenses takes time, and many buyers who could comfortably afford a monthly mortgage payment have a harder time pulling together the upfront costs.

NIFA has two programs built specifically for this situation: the Homebuyer Assistance (HBA) program and the Welcome Home Assistance (WHA) program. Both work the same way in principle. Here is what you need to know.

How the Programs Work

HBA and WHA are down payment assistance programs that pair a NIFA first mortgage with a second mortgage. The second mortgage covers a portion of your down payment and closing costs so you can get into a home without depleting your savings.

The Second Mortgage

The assistance comes in the form of a second mortgage, not a grant. You borrow the money, but at a very low rate: 1% interest on a 10-year term. The second mortgage covers up to 5% of the purchase price.

You make payments on both loans. The first mortgage is your standard NIFA loan. The second mortgage payment is separate and calculated based on the amount borrowed at 1% over 10 years. Because the rate is low, the combined payment is designed to remain manageable.

What It Can Cover

The second mortgage can be applied to your down payment, your closing costs, or both. This gives you flexibility to direct the assistance where it does the most good for your specific situation.

HBA vs. WHA: What Is the Difference?

The two programs serve different buyer situations. The structure is identical; what changes is which first mortgage they pair with.

• Homebuyer Assistance (HBA): Pairs with a NIFA First Home loan. Designed for first-time homebuyers (defined as someone who has not owned a primary residence in the past three years).
• Welcome Home Assistance (WHA): Pairs with a NIFA Welcome Home loan. Open to both first-time and repeat buyers. Welcome Home has higher income and purchase price limits than First Home, so WHA reaches buyers who may have been just outside the HBA eligibility window.

If you have owned a home before, WHA may be your path. If you are a first-time buyer, either program may be available depending on your income and purchase price.

Who Qualifies?

Eligibility is determined by your lender based on NIFA's program guidelines. The key factors are:

• Income limits: NIFA programs have income limits that vary by household size and county. Your lender can confirm whether your income qualifies.
• Purchase price limits: Vary by county, number of units, and whether the property is in a Targeted Census Tract. Properties in targeted areas may have higher limits. Check current limits at nifa.org/lenders-realtors/programs-eligibility.
• Credit score: Minimum credit score requirements apply. Your lender will review this as part of the qualification process.
• Homebuyer education: Only first-time buyers using HBA or WHA must complete an approved homebuyer education course before closing. Find approved courses at nifa.org. If you’re a first-time buyer, complete this early. Do not wait until you are under contract.
• Primary residence: The home must be your primary residence. You must occupy it within 60 days of closing.

A Note for Sellers and Listing Agents

If you are a seller or a listing agent and your buyer is using HBA or WHA, the second mortgage structure is not unusual or risky. These are established NIFA programs that have helped Nebraska buyers close transactions for many years. The buyer still qualifies through a standard NIFA-approved lender. The second mortgage is part of their financing package, not an added complication to the transaction.

For agents looking for a deeper reference, NIFA's guide for real estate professionals covers the full loan process and what to expect at each stage.

Frequently Asked Questions

Is this a grant I do not have to pay back?

No. HBA and WHA provide a second mortgage, not a grant. You repay it over 10 years at 1% interest. The trade-off is that you can get into a home sooner without waiting to save a full down payment on your own.

Can I use this with any home in Nebraska?

Most Nebraska homes are eligible, but some limits and requirements apply. The home must be your primary residence, and purchase price limits are based on factors such as the number of units and whether the property is in a target area. Multi-unit properties may be eligible with additional requirements, though Welcome Home loans are limited to properties with up to two units. Your lender can confirm whether a specific property qualifies.

Do I apply for the second mortgage separately?

No. Both the first mortgage and the second mortgage are originated together through your NIFA-participating lender. You apply once. The lender handles both.

What if I am not sure which program fits me?

Use NIFA's QualBot (Quinn) on the homepage for a quick eligibility screening. Then connect with a NIFA-participating lender who can confirm which programs you qualify for based on your full financial picture.

Get Started

• Find a NIFA-participating lender
• Use the QualBot at nifa.org for a quick eligibility read
• Find an approved homebuyer education course
• See all NIFA homebuyer programs

Related Reading

• How Real Estate Agents Can Work With NIFA to Help More Nebraska Buyers Succeed. A full agent reference for working with NIFA financing.
• Credit Scores for Nebraska First-Time Homebuyers. Understand what lenders look at before you apply.
• How Much House Can I Afford in Nebraska? Set realistic expectations before you start.

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