NENEDD Direct Homebuyer Assistance Program

What is NENEDD Direct Homebuyer Assistance Program?

NENEDD Direct Homebuyer Assistance Program is a deferred second loan for homebuyers in Nebraska, administered by Northeast Nebraska Economic Development District (NENEDD) / Northeast Economic Development, Inc.

• A 0% interest deferred second-mortgage loan that provides down payment and closing cost assistance to low-to-moderate income homebuyers purchasing a single-family home in NENEDD's 16-county Northeast Nebraska service area. Introduced in 2001 and funded through the Nebraska Affordable Housing Trust Fund. Repayment is due and payable upon transfer of title; a subordinated lien is recorded in second position behind the primary lender.
• Up to $30,000 or 20% of total project cost toward down payment and closing costs.
• 0% interest.
• No monthly payments (deferred until title transfer).
• Subordinate second-position lien.
• Funding comes from Nebraska Affordable Housing Trust Fund (NED Inc. TF HP 15004).

How much assistance does it provide?

NENEDD Direct Homebuyer Assistance Program offers up to $30,000 in assistance.

• Buyer contribution: Applicant must provide $1,000 of their own money toward closing fees and pre-paid escrow accounts (a $500 closing fee charged at closing may be applied toward this requirement).
• The program can be combined with Required primary single-family mortgage from a lender of the buyer's choice.
• Amounts are the program's published maximums, not an offer — Northeast Nebraska Economic Development District (NENEDD) / Northeast Economic Development, Inc. determines any individual award.

Do you have to pay it back?

NENEDD Direct 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 Due and payable upon transfer of title.
• The assistance is recorded in Second (subordinate to primary lender) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

NENEDD Direct Homebuyer Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

NENEDD Direct Homebuyer Assistance Program sets its income limit as follows: Eligibility determined by family size and household gross income; income limits vary by county and follow HUD limits.

• 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?

NENEDD Direct Homebuyer Assistance Program caps the purchase price at $308,000.

• Eligible property types include Single Family.
• New construction is eligible.

Where does it apply?

NENEDD Direct Homebuyer Assistance Program serves buyers purchasing anywhere in Nebraska.

How do you apply?

Applications for NENEDD Direct Homebuyer Assistance Program go through Northeast Nebraska Economic Development District (NENEDD) / Northeast Economic Development, Inc., 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 NENEDD Homebuyer's Education Workshop.

2. 2

   Contact Northeast Nebraska Economic Development District (NENEDD) / Northeast Economic Development, Inc. to reserve funds

   Funds are reserved with the provider 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.