Overview
The Nebraska Housing Resource down payment assistance program is provided to buyers of new construction properties in Lincoln constructed by members of the Home Builders Association of Lincoln (HBAL). It is viewed by NHR as a subsidy to the cost of the home. It is provided to buyers as a 0% interest, non-amortizing loan due upon future sale of the home, whenever that may be. This loan is secured by a Deed of Trust subordinate to the buyer’s mortgage and any secondary NIFA or otherwise down payment assistance loan.
Guidelines
NHR’s down payment assistance program must be used only on new construction properties in Lincoln constructed by members of HBAL (or actively pursuing a membership with HBAL) at a price under $420,000. Buyers can receive $15,000 for down payment assistance. Buyers must have an income at or below 120% of the area median as published annually by the Nebraska Department of Economic Development (DED). Buyers must either be citizens of the United States or under “qualified alien” status. The buyer must have at least $1,000 of their own funds in the transaction. Buyer must complete a homebuyer education course through eHome America at a cost of $100. They must also provide a homeowners’ insurance certificate of coverage to NHR with NHR being listed as an additional interest on their policy. They must keep a current homeowners’ insurance policy for the duration of the loan.
Process
Buyers typically get connected with our down payment assistance program through the builder, their lender, or their realtor. We require the builder to fill out a Down Payment Assistance Letter of Interest which evidences their construction experience and HBAL membership status. Once NHR is connected with the buyer, we work with the buyer’s mortgage lender until closing. To begin, the buyer fills out an application providing details such as household size and income. The buyer then fills out an attestation of their US citizenship or qualified alien status and then a document authorizing NHR to verify their income and employment status. After income verification, NHR provides an attestation to the buyer for them to sign. After this, NHR issues a letter of conditional eligibility for down payment assistance. For final approval to be issued, NHR must receive a certificate of coverage for homeowners’ insurance, the buyer must complete the aforementioned course through eHome America, and the transcation must receive internal approval through NHR’s Board of Directors. After this, we verify the buyer has at least $1,000 of their own funds in the transaction with a draft closing disclosure. Finally, at closing, NHR provides a $15,000 cashier’s check on the buyer’s behalf to the title company and has the buyer sign a promissory note, loan agreement, and Deed of Trust.