All of NIFA's loan programs offer 30-year fixed rate financing to keep your clients' monthly payments affordable. There are no prepayment penalties so they have the option to make additional payments each month to be applied towards the principal amount of their loan. NIFA loans are provided at competitive interest rates, offer low or no down payments, closing cost assistance and include government and conventional loans. NIFA first mortgage loans are assumable subject to certain requirements.
NIFA's Military Home Program is for buyers who are actively employed by any branch of the service or for Qualified Veterans who have been discharged from the service under conditions other than dishonorable.
Active members of the service must meet NIFA's first-time homebuyer definition described in the Eligibility section. Qualified veterans and spouses are not required to be a first-time homebuyer and will need to provide a copy of their DD-214 Form to determine eligibility. The Participating Lender will also need a copy of their VA Certificate of Eligibility if they are obtaining a VA loan.
If your client does not have a VA Certificate of Eligibility or chooses not to use their eligibility for a VA loan, they have the option of choosing either a Federal Housing Administration (FHA) insured loan or a USDA Rural Development (RD) guaranteed loan with this program. Click here for current Military Home interest rates.
NIFA's Homebuyer Assistance (HBA) Program opens the door to homeownership even if your buyer does not have sufficient funds for down payment and closing costs. With a minimum investment of $1,000, our HBA program can help them buy a home. There may be some situations where the minimum investment may need to be more than $1,000 depending on the type of loan (government or conventional) and the amount of closing costs the seller is willing to pay.
The HBA Program includes a first and second mortgage loan. The interest rate on the first mortgage loan is higher than NIFA's other programs that do not offer down payment and closing cost assistance. The maximum amount of assistance for the second mortgage loan is 5% of the home's purchase price. The term of the second loan is 10 years or 120 months. The interest rate on the second mortgage loan is 1%. Your client will be required to make monthly payments on their HBA second mortgage starting at the same time as the payments for their first mortgage loan.
Loan options for this program include an FHA-insured loan, Conventional-insured loan, RD-guaranteed loan or VA-guaranteed loan. Click here for current HBA Program interest rates.
NIFA's First Home Program is for homebuyers who do not qualify for our Military Home Program and do not need down payment and closing cost assistance. Buyers using this program must meet NIFA's first-time homebuyer requirement as described in the Eligibility section.
Loan options for this program include an FHA-insured loan, RD-guaranteed loan, VA-guaranteed loan and Conventional-insured loan. If your buyer has a down payment of 20% or more and qualifies for a conventional loan, mortgage insurance is not required. Click here for current First Home Program interest rates.
NIFA's First Home Targeted Program is for buyers who purchase a home located within one of our target areas and do not need down payment and closing cost assistance. The first-time homebuyer requirement does not apply for this program. Maximum income limits and purchase price limits are higher when a home is located in a target area.
Target areas are designated by the federal government. The following counties have census tracts in a target area:
Your clients can use NIFA's interactive map to help identify whether or not a specific home is located within one of our target areas. Type in the exact address or city in the white box located in the upper right corner above the map. Target areas are shaded. They can use the + or - symbols located in the upper left corner to zoom in or zoom out.
Loan options for this program include an FHA-insured loan, RD-guaranteed loan, VA-guaranteed loan and Conventional-insured loan. If your buyer has a down payment of 20% or more and qualifies for a conventional loan, mortgage insurance is not required. Click here for current First Home Targeted interest rates.
The First Home Grant Program is for buyers with a total household income that does not exceed 50% of the Area Median Income (AMI). The Program provides first mortgage financing and grant funds for down payment and/or closing cost assistance. The grant amount is $5,000 per household and is not required to be paid back. There is a limited amount of funding and the funds will be allocated on a first-come, first-serve basis.
Buyers using this program must meet NIFA's first-time homebuyer requirement described in the Eligibility section.
Your loan type options include a Conventional-insured loan, FHA-insured loan, USDA Rural Development-guaranteed loan and VA-guaranteed loan. If your downpayment is 20% or more and you qualify for a conventional loan, mortgage insurance is not required. Click here for current First Home Grant Program interest rates.