First-Time Homebuyer Programs in Nebraska

The down payment on a new home is often the biggest hurdle for first-time homebuyers. In Nebraska, where the average home value is $260,097, you'd need a down payment of $52,019 to avoid buying private mortgage insurance.

First-time homebuyer programs in Nebraska help make homeownership more accessible. Some mortgages let you make a smaller down payment, but they often have income limits and require mortgage insurance. MoneyGeek breaks down state and government-backed programs to help buyers from different financial backgrounds.

Nebraska offers grants and loans to assist first-time homebuyers in covering payment and closing costs. We compiled first-time homebuyer programs offered by the Nebraska Investment Finance Authority (NIFA) to help you find the best option for your particular needs and situation.

The First Home Program provides first-time homebuyers with access to affordable mortgage options, including conventional, FHA, USDA Rural Development or VA loans. It suits those who haven't owned and occupied a home in the last three years and aren't seeking a down payment or closing cost assistance. The program offers competitive interest rates, making it cost effective for eligible homebuyers.

The First Home Targeted Program caters to those purchasing homes in federally designated target areas in Nebraska. It allows higher income and purchase price limits than non-targeted areas and supports multiple loan types, including FHA, VA, USDA and conventional loans.

This program is available to first-time and repeat homebuyers in Adams, Buffalo, Dakota, Douglas, Hall, Lancaster and Scotts Bluff counties, benefiting those who may not qualify for other programs.

The Homebuyer Assistance Program (HBA) helps homebuyers cover down payment and closing costs by providing a first and second mortgage loan.

The first mortgage has a slightly higher interest rate because it includes a down payment and closing cost assistance. The second mortgage can be up to 5% of the home's purchase price, with a maximum 10-year term and a 1% interest rate. This assistance is available with conventional, FHA, VA or USDA loans.

The Welcome Home Program gives first-time and repeat homebuyers access to affordable mortgages. This initiative offers 30-year fixed-rate loans with competitive interest rates. Options include conventional, FHA, USDA and VA loans.

Homebuyers must meet income and purchase price limits, which vary by household size and the county where the home is located. First-time homebuyers are required to complete a homebuyer education course before closing.

The Welcome Home Assistance Program provides down payment and closing cost assistance to first-time and repeat homebuyers. It offers affordable lending solutions with specific income and purchase price limits.

First-time buyers must complete homebuyer education, and all borrowers must adhere to NIFA's credit underwriting guidelines. Once the purchase is complete, borrowers must occupy the home as their primary residence within 60 days of closing.

Nebraska offers zero-down-payment loan programs, allowing you to purchase a home without any initial financial outlay. USDA and VA loans are government-backed options that don't require a down payment.

USDA loans help low to moderate-income homebuyers purchase properties in rural areas. The U.S. Department of Agriculture issues these loans through its Rural Development Guaranteed Housing Loan program. This initiative promotes homeownership in less populated regions.

USDA loans offer several benefits, including no down payment requirements and competitive interest rates, making them attractive to those who may struggle to save for a traditional down payment. Borrowers must meet certain conditions, such as agreeing to occupy the property as their primary residence and getting a 30-year fixed-rate mortgage.

To qualify for a USDA loan, the property must be 2,000 square feet or below and located in a USDA-eligible rural area with a population of less than 35,000. Income limits vary by location. For example, the income limit for a four-person, low-income household is $69,900 in Boyd County, Nebraska, compared to $77,200 in Hamilton County, Nebraska.

VA loans from the U.S. Department of Veterans Affairs are for veterans, active-duty service members and certain National Guard and Reserve members. They offer home financing with benefits tailored to those who have served.

VA loans come with several advantages, including a no-down payment option. They don't require private mortgage insurance, which can save you money over the life of the loan. VA loans also typically offer lower interest rates than private loans. As of November 2024, the APR for a 15-year fixed-rate VA loan in Nebraska is 6.29%, while the APR for a 30-year fixed-rate VA loan is 6.3%.

Eligibility for VA loans depends on several factors, including service length or commitment, duty status and character of service. Applicants must also meet location-based income limits and have a valid certificate of eligibility (COE).

First-time homebuyers in Nebraska can access low-down-payment loan programs for financing their home with a down payment of 3.5% or less. These programs include conventional, FHA and FHA 203(k) loans.

FHA and conventional loans are often compared, as they're the most common types of mortgages. FHA loans require a minimum down payment of 3.5%, while conventional loans can require as low as 3% for first-time homebuyers. Conventional loans typically have stricter credit score and debt-to-income ratio requirements, making FHA loans more accessible for some homebuyers.

As of November 2024, Nebraska's 15-year fixed-rate conforming loan APR is 6.12%. The APR for a 15-year fixed-rate FHA loan is 8.11%. FHA loan APRs can be higher due to additional fees and costs associated with government-backed loans.

Use our FHA vs. conventional loan calculator below to compare both mortgage programs and determine the best option.

We answered frequently asked questions about first-time homebuyer programs in Nebraska to help you find the best option and move closer to owning a home.

Explore additional MoneyGeek resources for first-time homebuyers in Nebraska to help you with the homebuying process.