1) Nebraska Investment Finance Authority (NIFA) was created by the Nebraska Legislature in 1983 to provide affordable loan programs for first-time home buyers (certain exceptions apply). NIFA offers competitive interest rates, low or no down payments, closing cost assistance, and government or conventional loans. Over 84,000 Nebraskans have purchased their home with a NIFA loan. Check with Omaha Home Equity Group for eligibility and to find a NIFA lender in your area.
2) Federal Housing Administration (FHA) is another financing option. Home buyers will need a 3.5% down payment as well as upfront Private Mortgage Insurance (PMI) and PMI for the life of the loan. A home buyer may ask the seller to pay up to 6% of the purchase price towards closing costs. The maximum loan amount in Nebraska for an FHA loan is $271,050.
3) Veterans Administration (VA) loans provide financing those who have served the United States in the military. Benefits of a VA loan include no down payment, no PMI, and home buyers may ask the seller to pay up to 4% of the purchase price towards closing costs. The maximum loan amount for a VA loan in Nebraska is $417,000.
4) A conventional loan is another way to finance a home purchase. With a conventional loan, you will have PMI (Private Mortgage Insurance) as part of your monthly payment if you have less than a 20% down payment. You do not have to pay upfront PMI. The higher your down payment the more you can request in seller assistance for costs.
5%-9.99% down payment – the home buyer may ask for up to 3% of the purchase price in closing costs from the seller.
10%-24.99% down payment- the home buyer may ask for up to 6% of the purchase price in closing costs from the seller.
25% down or more down payment – the home buyer may ask for up to 9% of the purchase price in closing costs from the seller.