Homebuyer Assistance Program

Homebuyer Assistance Program is a deferred second loan for homebuyers in Statewide, Nebraska. NIFA bond-funded 10-year amortizing second mortgage of up to 5% of purchase price (approx. $10,000 max) at 1% interest, paired with a NIFA first mortgage. 640 FICO / 45% DTI; 660 FICO / 50% DTI. First-time homebuyer required. Statewide. The NIFA Homebuyer Assistance Program (HBA) opens the door to homeownership for Nebraskans who don't have funds for a down payment or closing costs. HBA combines a NIFA 30-year fixed-rate first mortgage with a second-mortgage DPA loan equal to up to 5% of the home's purchase price (typical maximum approximately $10,000). The second mortgage carries a 10-year (120-month) amortizing term at a 1% interest rate. the first-mortgage rate is slightly higher than NIFA's no-DPA programs because it includes the cost of the assistance. Funds may be applied to down payment and/or closing costs. Loan-type options include Conventional, FHA, VA, and USDA Rural Development. Funding comes from State and Bond.

Homebuyer Assistance Program provides assistance worth 5% of the purchase price, as set by the program. The program asks homebuyers to contribute $1,000 minimum borrower investment (may be gifted). HBA second mortgage covers approximately 5% down payment plus closing costs. Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Homebuyer Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off. Repayment is triggered by 10-year (120-month) amortizing monthly payments. Balance due on sale, refinance, transfer of title, or non-owner-occupancy. 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.

Homebuyer Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Federally designated NIFA target census tracts and qualified veterans waive the first-time-homebuyer requirement. Other exceptions for divorce-loss without proceeds, natural disaster, or forced job relocation. On credit, the program states: 640 minimum representative mid-FICO (45% max DTI). 660+ FICO permits up to 50% DTI. A homebuyer education course is required, through NIFA-approved homebuyer education providers (Framework, eHome America, HUD-approved counseling agencies, NeighborWorks Lincoln, NeighborWorks Northeast Nebraska). Residency requirement: Property must be located in Nebraska and serve as borrower's principal residence within 60 days of closing. Citizenship or immigration status: U.S. citizen, permanent resident alien, or qualifying non-permanent resident alien per first-mortgage product overlays. Must qualify for and be paired with a NIFA first-mortgage loan. First-time homebuyer required (waived for qualified veterans and in NIFA target census tracts). Owner-occupied principal residence within 60 days of closing. Income up to $104,200 (1-2 person non-targeted) / $159,180 (3+ person targeted). Acquisition cost within NIFA limits ($398,000 non-targeted / $485,500 targeted, 1 unit, effective 7/7/2025). 640 mid-FICO minimum (45% DTI); 660 FICO permits 50% DTI. $1,000 min borrower contribution. NIFA-approved first-time homebuyer education required prior to closing.

Homebuyer Assistance Program limits household income to $159,180. 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.

Homebuyer Assistance Program caps the purchase price at $470,000. Eligible property types include Single-family detached, condominium, townhouse, PUD, 2-4 unit per NIFA rules (5+ years old unless duplex in target area), and manufactured home on permanent foundation per servicer overlays. New construction is eligible. Manufactured homes are eligible.

Homebuyer Assistance Program 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.

Homebuyer Assistance Program serves homebuyers purchasing in Statewide, Nebraska. The program targets specific areas: NIFA-designated target areas (federally qualified census tracts under IRS Section 143) where FTHB is waived and higher income/purchase-price limits apply.

Applications for Homebuyer Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Reserved by approved participating lender via NIFA's Lender Online portal at time of rate lock. 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.