Down Payment Assistance

Down Payment Assistance is a deferred second loan for homebuyers in Lincoln, Nebraska. NWL interest-free, payment-deferred soft second mortgage covering 5% down payment + closing costs for first-time buyers in Lincoln (Lancaster County). $247,000 max purchase. 640 FICO. Lancaster County 1-year residency required. NeighborWorks Lincoln (NWL) provides Down Payment Assistance (DPA) to help with the required down payment and closing costs that go along with purchasing a home in Lincoln, Nebraska. Assistance amounts vary per family and are based on the purchase price of the home and household income. The DPA is provided through an interest-free, payment-deferred soft second mortgage that covers a 5% down payment and closing costs associated with the purchase. Payment on the loan is due upon sale of the property or if the program participant no longer uses it as their primary residence. Special incentives are available to buyers who purchase homes in NWL target neighborhoods (Malone/Hawley, Capitol View, Northeast Radial). Financial assistance also covers a limited rehabilitation scope focused on structural repairs. Funding comes from Federal, HOME, CDBG, and City.

Down Payment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by Full balance due upon sale of the property, refinance, or when the program participant no longer uses the home as their primary residence. No monthly payments during the life of the loan. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Down Payment Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Must be a first-time homebuyer (no homeownership in past 3 years). On credit, the program states: 640 minimum mid-FICO across all three credit bureaus. A homebuyer education course is required, through NeighborWorks Lincoln 4-class Homebuyer Education program (taught by NWL-certified instructors) plus 1:1 financial counseling. Residency requirement: Must be a Lancaster County resident for at least 1 year. Property must be within Lincoln city limits. Owner-occupied principal residence required. Citizenship or immigration status: U.S. permanent resident. Minimum credit score 640; stable employment history; minimum $1,000 of borrower's own funds in a bank account at time of purchase. Household income must fall within program limits (50%-120% AMI tier depending on property location). Must be a U.S. permanent resident and a Lancaster County resident for at least 1 year. Must be a first-time homeowner (no homeownership in past 3 years). Property must be within Lincoln city limits. Completion of NWL 4-class Homebuyer Education + 1:1 financial counseling required prior to closing.

Down Payment Assistance limits household income to 120% of the area median income, which varies by county and household size. NWL DPA income range $60,200-$141,900 reflects HUD AMI by household size for Lincoln MSA, with 50% AMI baseline for some products and up to 120% AMI for affordable homes in target neighborhoods. Specific eligibility tier determined at application. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Down Payment Assistance caps the purchase price at $247,000. Eligible property types include Existing single-family homes anywhere within Lincoln city limits. Some condos/townhouses eligible per NWL underwriting. New construction is not eligible. Manufactured homes are not eligible.

Down Payment Assistance names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Down Payment Assistance serves homebuyers purchasing in Lincoln, Nebraska. The program targets specific areas: NWL Partner Neighborhoods (Malone/Hawley, Capitol View) and Northeast Radial corridor receive enhanced DPA incentives and may permit higher purchase price tiers and partial forgiveness.

Applications for Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Application submitted through NWL Homeownership Department; reviewed on a rolling basis subject to funding availability. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.