Las Vegas will benefit by the Nevada Department of Business and Industry Housing Division’s First Time Homebuyer Program. This program will make available $50 million to help first-time home buyers by providing 30-year fixed rate loans at below market interest rates.
This program will be administered by Countrywide Home Loans who will also be master servicer and a participating lender. Other participating lenders are:
- Wells Fargo
- JP Morgan Chase Bank
- DHI Mortgage
- Republic Mortgage
- Gulid Mortgage
- Silver State Schools Credit Union.
All of these lenders can assist prospective first-time home buyers to obtain home financing under this new program.
Additionally, this program can help eligible buyers with financial assistance for the down payment and closing costs for their home. The down payment assistance can be in the range of $15,000 up to $50,000 depending upon eligibility of the buyer.
Qualifications for a loan from the Housing Division require that a potential buyer “must never have owned a home or had an ownership interest in a principal residence within the past three years. For Clark County residents, a one to two person household must not earn more than $70,020 annually and in a 3+ person household, the earnings maximum is $82,740. The maximum price allowed for a newly constructed or existing dwelling cannot exceed $318,552”.
The Nevada Housing Division offers three programs under its First Time Homebuyers Program to help new home owners with down payment and closing cost assistance.
NHD Down Payment and Closing Cost Loan Program
- Provides up to $15,000 in assistance.
- Restricts purchase price per number in family as above.
- Earning restriction applies as listed above.
- Restricts assets to $5,000 which includes cash, savings accounts, stocks, bonds and equity in real property – after payment of closing costs.
- Homeowner is required to successfully complete a First Time Homebuyer Education Course.
- Application has been made through one of the participating lender institutions at the same time as the application for First Time Homebuyer Loan.
NHD Home Deferred Loan Program
- Provides up to $25,000 in assistance.
- Restricts purchase price per number in family as above.
- Earning restriction applies as listed above.
- Provides for a deferred loan to be repaid upon the sale, transfer of title or refinance.
- Restricts assets to $5,000 which includes cash, savings accounts, stocks, bonds and equity in real property – after payment of closing costs.
- Homeowner is required to successfully complete a First Time Homebuyer Education Course.
- Application has been made through one of the participating lender institutions at the same time as the application for First Time Homebuyer Loan.
NHD Low Income Housing Trust Fund Deferred Loan Program
- Provides up to $50,000 in assistance.
- Restricts purchase price per number in family as above.
- Earning restriction applies as listed above.
- Provides for a deferred loan to be repaid upon the sale, transfer of title or refinance.
- Restricts assets to $5,000 which includes cash, savings accounts, stocks, bonds and equity in real property – after payment of closing costs.
- Homeowner is required to successfully complete a First Time Homebuyer Education Course.
- Application has been made through one of the participating lender institutions at the same time as the application for First Time Homebuyer Loan.
Following are the steps to be taken relative to applying for a First Time Homebuyer Loan:
- Prequalify for a loan. First, select and make an appointment with one of the participating lender institutions in the program. They will help to determine your eligibility and purchase price of the home for which you will be able to qualify as well as the best loan type for your needs. The lending institution will explain the fees involved and the amount of down payment necessary.
- First Time Homebuyer Education Class. The Housing Division requires that you attend a class for first time home buyers in order to be approved for the program. You must attend a live class that is approximately 6 to 8 hours in length.
- Locate an affordable home. Based on the information provided to you by the lending institution, begin looking for a home within those guidelines. The Housing Division recommends (but does not require) that you use the services of a real estate agent.
- Enter into a real estate Purchase Contract. This home contract specifies the legal responsibilities of both the seller and the buyer, specifies the date of purchase and the price of the home you are planning to buy. Time should be allowed for a home inspection, appraisal and approval of your loan. The contract should state that if you are not satisfied with the results of the home inspection or you are not approved for a loan, your deposit money will be returned to you.
