Homebuyer Assistance (HBA)
The Homebuyer Assistance (HBA) Program combines the benefits of a first mortgage loan with a second mortgage loan for homebuyers purchasing a home within the State of Nebraska. The second mortgage loan provides down payment and closing cost assistance.
You must be a first-time homebuyer; unless the home is located in a federally designated target area or you meet the definition of a qualified veteran. A first-time homebuyer is someone that has not owned and lived in a home within the past 3 years. Certain exceptions apply if a home was lost by divorce, forced job relocation or natural disaster. There are maximum income and purchase price limits that apply to all homebuyers. You must live in the home as your principal residence.
The second mortgage loan provides assistance in an amount up to 5% of the purchase price of the home. NIFA requires the homebuyer to have a minimum investment of $1,000. The term of the second mortgage loan is 10 years (120 months). Homebuyers must make principal and interest payments on the second loan.
The minimum credit score requirement for government and conventional loans is 640 with a maximum total debt to income ratio of 45%. If your credit score is 660 and above, NIFA will allow a maximum total debt to income ratio of 50%. If your Participating Lender needs to use manual underwriting guidelines to approve the loan, the minimum credit score requirement is 660 with a maximum housing expense ratio of 31% and a maximum total debt to income ratio of 43%. If you do not have a credit score, you may still qualify for a loan subject to a maximum housing expense ratio of 31% and a maximum total debt to income ratio of 43%. Contact our office or a Participating Lender for more information.
The HBA interest rate is subject to change from time to time. Homebuyers have the option of choosing a government or conventional loan product.