Down Payment Assistance

What is 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.

How much assistance does it provide?

Down Payment Assistance provides assistance worth 5% of the purchase price, as set by the program.

• The program asks buyers to contribute $1,000 minimum of borrower's own funds in a bank account at time of purchase application.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

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.

Who qualifies?

Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

Down Payment Assistance serves buyers 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.

How do you apply?

Applications for Down Payment Assistance go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through NeighborWorks Lincoln 4-class Homebuyer Education program (taught by NWL-certified instructors) plus 1:1 financial counseling..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application submitted through NWL Homeownership Department; reviewed on a rolling basis subject to funding availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.