Nevada has been of the fastest-growing states in the country over the past several years, which means a good amount of homebuyers looking to buy. But if getting a mortgage or paying a down payment is holding you back from buying, you can check out the state and federal first-time homebuyer programs that are available. Each one on our list makes it easier and more affordable to achieve the American Dream. If you’re buying a home for the first time you may want to speak with a financial advisor before taking the leap so that you can get all of your questions answered.
Nevada First-Time Homebuyer Programs
Let’s first take a look at the first-time homebuyer programs that are unique to residents of the state of Nevada. Each of these programs is financially supported by the state and has its own unique set of qualifications. Some provide down payment assistance while others might help you get a mortgage with reduced interest rates.
Home Is Possible
| Pros | – Down payment assistance for up to 5% of the loan value |
| Cons | – Must pay a one-time application fee |
| Eligibility | – Credit score of at least 640 – For government (FHA, USDA, VA) and Freddie Mac loans — qualifying income must be below -Household income below $105,000 (limits vary by county) -Home price below $548,250 -Must take homeownership class homebuyer education course |
| Best For | – Low- and mid-income Nevadans that can’t afford a down payment |
The Nevada Housing Division (NHD) started the Home Is Possible family of homebuyer program to help Nevadans buy homes on their own. Rather than lending money directly, the NHD qualifies lenders that administer the program’s offerings. All mortgages from NHD lenders are 30-year, fixed-rate loans with competitive interest rates. Each program comes with a different credit score and other eligibility requirements. Some also have income and purchase price limits. To ensure they are ready for the responsibility, all first-time homebuyers must take a homebuyer education course prior to closing on an NHD mortgage.
The standard Home Is Possible (HIP) program offers homebuyers down
payment assistance worth up to 5% of the original mortgage amount to help cover the down payment and closing costs.
Buyers must have a credit score of 640 or above, meet income and purchase price limits, and complete an NHD-approved homebuyer education course to qualify.
Home Is Possible – A Program for Heroes
| Pros | – Reduced interest rates – A second, forgivable loan – Potential to combine with a federal tax credit |
| Cons | – Must pay a one-time application fee |
| Eligibility | – Federal loan participant – Credit score of at least 640 – Household income below $105,000 – Home price below $548,250 – Military members and veterans, their spouses, or other beneficiaries – Must take a homebuyer education course |
| Best For | – Low- and mid-income Nevadans that can’t afford a down payment |
Home Is Possible – a program for heroes helps the NHD express thanks to the servicemen and women that defend our nation’s values. It gives military personnel and veterans more buying power and an opportunity to experience the benefits of homeownership for less.
This 30-year, fixed-rate mortgage with below-market interest rates helps reduce monthly mortgage payments and there is no first-time homebuyer requirement.
The 640 credit score minimum, homebuyer education course requirement, and income and purchase price limits associated with the standard Home Is Possible program all remain. There’s also a one-time fee of $755.
Home Is Possible for Teachers
| Pros | – $7,500 in bonus money – Forgivable after five years (if you stay in your home) |
| Cons | – Must pay a one-time application fee |
| Eligibility | – Federal loan participant – Credit score of at least 660 for FHA or 640 for VA, USDA – Household income below $105,000 – Home price below $548,250 – Licensed full-time K-12 public school classroom teacher in Nevada – Must take homebuyer education course |
| Best For | – Low- and middle-income Nevadan teachers |
The Home Is Possible for Teachers program is very similar to the Home Is Possible program. Instead of a 5% down payment assistance, it provides $7,500 for the down payment and closing costs. The down payment assistance is forgivable if your home is still your primary residence after five years. The Nevada Housing Division tells homebuyers to think of it as extra credit for teachers.
There is still a one-time fee of $755 for the Home Is Possible For Teachers program and the credit score minimum is 660 rather than 640, but it’s a small price to pay for lifelong savings.
Federal First-Time Homebuyer Programs
FHA Loans
| Pros | – Don’t need a high credit score to qualify – Low down payment needed |
| Cons | – Higher down payments for lower credit scores |
| Eligibility | – Credit score of at least 580 – Down payment of at least 3.5% |
| Best For | – Any Nevadan lacking adequate savings for a down payment |
The Federal Housing Administration (FHA) program is one of the most popular first-time homebuyer programs in Nevada. While backed by the FHA, loans are distributed by external lenders throughout the state. The biggest benefit by far is the reduced down payment requirement.
Rather than the standard 20%, borrowers only need to provide 3.5% of the home’s value at closing. Better yet, FHA loan requirements are minimal, so almost anyone can qualify. You need a FICO® credit score of 580 to receive the down payment perk in its full glory, but if your score falls between 500 and 580, you can get an FHA loan by making a down payment closer to 10%.
USDA Loans
| Pros | – Don’t need a high credit score to qualify – No down payment is needed |
| Cons | – Only available in select areas – Only available to those that can’t get a conventional mortgage |
| Eligibility | – Home in an eligible area – Household income generally must be within 115% of the local median |
| Best For | – Low- and mid-income Nevadans willing to live in a rural part of the state |
The United States Department of Agriculture (USDA) sponsors the “Section 502 Single Family Housing Guaranteed Loan Program,” which provides favorable lending conditions to low- and moderate-income earners. Also known as USDA mortgages, these loans were created to attract new homebuyers to rural and semi-rural communities.
Applicants must prove that they have been unable to secure a conventional mortgage. So long as you have proof and decent credit history, you won’t have to pay any down payment at all. If your score falls a bit lower on the spectrum (500-580), you could still qualify. You will just have to pay a down payment closer to 10%.
VA Loans
| Pros | – No down payment is needed – Won’t have to get private mortgage insurance – Usually comes with reduced closing costs |
| Cons | – Must pay VA funding fee – Long application process |
| Eligibility | – Credit score of at least 580 – Military members and veterans, their spouses, or other beneficiaries |
| Best For | – Nevada veterans that can’t afford a down payment |
To show the federal government’s appreciation for our armed servicemen, the Department of Veterans Affairs (VA) developed VA loans. The department ensures these loans but they’re actually distributed by third-party lenders.
The biggest perk here is also the low down payment. Most buyers will actually be eligible for a loan worth 100% of their home’s value. In other words, no down payment. Plus, since the VA backs part of your risk, you will not have to get private mortgage insurance (PMI), which is usually required for down payments lower than 20% and can be very costly. VA loans also tend to come with low closing costs, leaving even more money in your wallet.
To qualify, you will need a credit score of 620 or higher. You’ll also need to contribute 1.4% to 3.6% of your home’s value into the VA fund, depending on the size of your down payment – should you choose to make one at all.
Native American Direct Loan Program (NADL)
| Pros | – No down payment is needed – Won’t have to get private mortgage insurance – Usually comes with reduced closing costs – Reduced, fixed rate – Don’t need a high credit score to qualify |
| Cons | – Only available in select areas |
| Eligibility | – Home in an eligible territory – Military members and veterans of Native American descent, their spouses, or other beneficiaries |
| Best For | – Native American veterans without a strong credit score |
The VA also sponsors Native American Direct Loans (NADL), which provide Native American veterans with the tools they need to buy a home. As with VA loans, NADL loans don’t require any sort of down payment, any private mortgage insurance, or usual closing costs.
What really sets NADLs apart is the reduced, set interest rate. To make things even better, borrowers do not need a strong credit history to qualify. Homes must be located on allotted lands, Alaska Native corporations, Pacific Island territories, or federally-recognized trusts, though.
Good Neighbor Next Door Program
| Pros | – Significant discount on home cost |
| Cons | – Only available in select areas |
| Eligibility | – Remain in-home at least three years – Police officers, firefighters, emergency medical technicians, or teachers |
| Best For | – Public servants without enough savings to afford a home |
The Housing and Urban Development (HUD) started the Good Neighbor Next Door Program to thank police officers, firefighters, emergency medical technicians, and teachers for their contributions to the community. More of a discount than a loan, participants receive a 50% reduction on the price of their homes.
Only homes in HUD-designated “revitalization” areas and buyers who agree to live in the home for at least three years are eligible. Once the three years are up, you can sell the home and retain any equity and profit. If you still need a loan on the remaining 50% of the home, HUD encourages you to apply for a conventional, FHA, or VA loan.
Fannie Mae/Freddie Mac
| Pros | – Multiple loan types are available – Don’t need any credit history to qualify – Low down payment needed – Cancellable private mortgage insurance |
| Cons | – Higher rates than other federal programs |
| Eligibility | – Income within the local median |
| Best For | – Nevadans that don’t qualify for other federal programs. |
Other federal homebuyer programs are a partnership between an organization and a third-party lender. Fannie Mae and Freddie Mac, on the other hand, are government-sponsored mortgage providers. They are similar entities but offer different programs with a range of benefits that first-time homebuyers can appreciate.
The HomeReady® loan from Fannie Mae helps low- or moderate-income buyers secure a mortgage without paying a high down payment. To qualify, you must have a minimum credit score of 620 and provide just 3% of the home’s value at closing. Though you will need to get private mortgage insurance, you can cancel it once you’ve accrued 20% equity in your new home.
The popular Home Possible 97% LTV programs from Freddie Mac also come with a low down payment and cancelable PMI. It’s also more flexible than a HomeReady loan. With a Home Possible loan, you can choose both the length (15 or 30 years) and terms (5/5, 5/1, 7/1, or 10/1 adjustable-rate) of the loan. You do not even need any credit to qualify.
Bottom Line
There are several programs to help first-time homebuyers in the state of Nevada. Some are supported by the state while others are federal programs that enable you to get help anywhere in the country. Each has unique requirements and possibly provides you with different types of aid. If you’re a first-time homebuyer in Nevada you can see which of these programs you might qualify for to take full advantage of money or special financing to either get approved or to lower your overall payment.
Tips For Getting a Mortgage
- Buying a home is a big decision and it can be difficult to understand how much house to buy or what interest rate is too expensive for you, especially if it’s your first time. You may want to consult with a financial advisor to help answer these questions and more. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Don’t leave any expense out of your homeowner budget. That means both the obvious, like a down payment and monthly mortgage payments, and the often forgotten, such as moving and closing costs, homeowner’s insurance, property taxes and maintenance costs. This way you’ll have all your bases covered in planning your financial future.
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