The entrance of
companies like Tesla and Switch into Nevada means great things for the local
economy. What they also mean are raising housing prices, as more and more
people move into the Silver State, creating a housing shortage. This is good
news for existing homeowners, but concerning for first-time homebuyers.
According to the Reno
Gazette-Journal, “In January 2012, the median price for a home in northern
Nevada was around $135,000. More than two and a half years later, home values
have jumped by about 85 percent.”
What does this mean
to the first-time homebuyer? It’s time to buy, while interest rates are still
low and before prices go up any higher. But you’re also probably going to need
some help.
Nevada is full of first-time
homebuyer programs, all designed to educate homebuyers on their
responsibilities, and then to help them into homes they can afford.
The U.S. Dept. of
Housing and Urban Development (HUD) lists several options on its website, www.hud.gov. These include first-time homebuyer programs
and loans with little to no down payment requirements, programs specific to
veterans and programs that give homeowners money back every year in the form of
tax credits.
Habitat for Humanity was founded by former President Jimmy Carter
and has a mission to provide homes for low-income families. Applicants must
meet specific income requirements and be willing to complete 500 hours of
“sweat” equity toward building their home or another home in the program. In
exchange, the first-time homebuyer can purchase a home with no down payment and
a monthly mortgage that is typically about half of normal rents for the area.
·
The USDA Rural Housing program provides low interest mortgages, typically with
little or no down payment requirements, in rural areas of the state. In Nevada,
this is defined as any city with fewer than 30,000 residents.
·
The Nevada Rural Housing Authority (NRHA) has two programs that can help homebuyers in rural Nevada
(every city except for Reno and Las Vegas). Their Home At Last TM down
payment assistance program
(which is not limited to first-time
homebuyers) includes both government (FHA, VA and USDA Rural Development) and
conventional (HFA Preferred) loan alternatives, coupled with granted down
payment assistance of up to 5 percent, depending on the loan type. NRHA also
offers the Mortgage Tax Credit (MTC) program that gives the first-time
homebuyer a federal tax credit equal to 40 percent of the interest paid on the
mortgage loan –
this could equal up to $2,000 a year in free money!
The Nevada Housing Division offers programs similar to
the NRHA programs that help first-time homebuyers living in urban areas of Nevada.
Many of these first-time
homebuyer programs can be used in conjunction with one other. The first step in
buying a home is to visit with a qualified home lender - one who understands
and is certified to work with these programs. They will look at your financial
situation (including any credit issues) and help you come up with the best
financing plan to get your family into a home of your own.
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