Down Payment Assistance (NeighborWorks Lincoln)

What is Down Payment Assistance (NeighborWorks Lincoln)?

Down Payment Assistance (NeighborWorks Lincoln) is a deferred second loan for homebuyers in Lincoln, Nebraska, administered by NeighborWorks Lincoln.

• NeighborWorks Lincoln provides down payment assistance for purchasing a home within Lincoln's city limits. Assistance is an interest-free, payment-deferred loan covering a 5% down payment plus closing costs, with a limited rehab scope for structural repairs in the first three years. Amount and forgiveness rate vary by household income and property location, with enhanced incentives in target neighborhoods.
• Interest-free, payment-deferred loan.
• Covers 5% down payment plus closing costs.
• Limited rehab for structural repairs (first 3 years).
• Enhanced incentives in target neighborhoods.

How much assistance does it provide?

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

• Amounts are the program's published maximums, not an offer — NeighborWorks Lincoln determines any individual award.

Do you have to pay it back?

Down Payment Assistance (NeighborWorks Lincoln) is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Due upon sale of the property or when the participant no longer uses it as their primary residence.
• The assistance is recorded in second 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 (NeighborWorks Lincoln) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance (NeighborWorks Lincoln) sets its income limit as follows: Assistance amount based on household income and purchase price; max existing-home purchase price $247,000 (HUD, eff. 9/1/2024).

• 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 (NeighborWorks Lincoln) can be used for Existing single-family homes within Lincoln city limits.

Where does it apply?

Down Payment Assistance (NeighborWorks Lincoln) serves buyers purchasing in Lincoln, Nebraska.

How do you apply?

Applications for Down Payment Assistance (NeighborWorks Lincoln) go through NeighborWorks Lincoln, which publishes the current terms and the application steps on its own site.

1. 1

   Contact NeighborWorks Lincoln to reserve funds

   Funds are reserved with the provider and are subject to availability.

2. 2

   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.