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.
All homebuyers must have a minimum credit score of 660 for FHA loans and 640 for all other loan types to qualify. If you do not have a credit score, you may still qualify. There is a maximum debt to income ratio requirement of 45% for all government loans and 50% for conventional loans. Contact 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.