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What Happened to Financing Assistance?

As you may know by now, seller assisted down payment assistance programs were eliminated on October 1 by the homeowners assistance legislation passed by Congress in July. Since then, sellers are precluded from contributing the 3% FHA down payment. Sellers may still contribute to buyers’ closing costs, but this is generally limited to 3 to 4 percent by lenders. However, there are still programs available to help buyers obtain financing.

Help Us Give To Our Schools (HUGS) originally provided down payment assistance to Clark County School District employees, but, as of September 22, is now available to all first time home buyers throughout Nevada. First time home buyers are defined as not having owned a home in the last three years. HUGS will provide between $2,000 and $12,000 toward a new home buyer’s down payment or closing costs. Eligibility requirements include using a HUGS foundation mortgage agent or Realtor. Combined income cannot be above $82,000 for families or $41,000 for singles. Liquid assets cannot exceed $15,000. The home buyer must invest a minimum of one percent and occupy the home for a minimum of three years.

The Nevada Housing Division has a first time home buyers’ program which provides up to $10,000 in assistance on fixed rate, 30 year loans. Total gross household income must be between $65,500 and $97,300, depending on which ocunty the house is located and how many people are in the household. The maximum price for a qualifying house also depends upon its location and ranges from $237,000 to $429,619. Buyer assets may not exceed 50 percent of the purchase price of the home, except for elderly or disabled buyers. The home buyer must also complete a six to eight hour Homebuyer Counseling Course.

The City of Las Vegas has a program with allows buyers to borrow up to $10,000 for help with down payment and closing costs. The loan is interest free with no monthly payments. The loan is deferred for five years and it may be forgiven after the five year period. Again, you must be a first time homebuyer, make a minimum investment from $500 and up to three percent of the loan and complete an approved home buyer training course.

The City of North Las Vegas uses two nonprofits to administer its first time home buyer assistance program. The assistance is similar to the City of Las Vegas in that it is an interest free, deferred payment loan, can be between $1000 and $37,500 and is secured by a deed of trust on the home. Buyers are required to have a total gross household income at or below 80 percnet of the area’s median income. Total household assets cannot exceed $30,000. Buyers must contribute a minimum of $1,000 from personal funds.

The City of Henderson’s first time home buyer program offers a zero percent, interest deferred loan which may not exceed 10 percent for down payment only and will also loan up to 3.5 percent in closing costs as well as include extra financing for home repairs. Applicants must either work or live in Henderson for at least one year prior to applying. They must also complete a city’s First Time Homebuyer Education Program. Potential buyers must invest at least $750 of their own funds toward the home and have $750 in reserves. Annual income must be between $35,750 and $67,450 depending on the number of persons in the household.

For more information on these programs or other questions, contact us.

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