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Nevada Home is Possible Grant Program

March 16, 2017

For many, owning a home is the 'Great American Dream.' The Home is Possible Grant Program, from the Nevada Housing Division, is helping to make that dream a reality for qualified Nevadans since 2014. The funding for the Home is Possible program comes from private taxable mortgage bonds- meaning, no government or taxpayer funds are used to maintain the program. The Home is Possible program gives eligible borrowers a fixed FHA 30-year loan, in addition to a lump sum of money, that does not need to be repaid. Funds can be applied towards a down payment for a home and/or for closing costs associated to the loan.

 

Benefits of the Nevada Home is Possible Program

The Nevada Home is Possible Program offers many great benefits for qualified Nevadans seeking to buy a home. Unlike other state sponsored grant programs, this program is open to all Nevadans in every county- not just first-time homebuyers. 

  • Grant amounts are based on the eligible borrower’s loan amount

  • Up to a 4% grant for an FHA Loan

  • Loan must be a fixed rate 30-year mortgage

  • Grant money is non-repayable. There is no 2nd Lien against the property. Meaning, the funds do NOT need to be paid back!

  • Grant money can be used towards down payment and/or loan closing costs.

  • There is NO first-time homebuyer requirement

  • There are NO asset limits for homebuyers

  • Program available in all Nevada counties, state-wide

  • Property type can be a new-build or existing home

  • There are NO pre-payment penalties or recapture taxes associated to this program.

 

Requirements for Home is Possible

The Home is Possible Program does have a few requirements that borrowers must meet. Included below, are the major requirements that borrowers will need to satisfy:

Program Requirements

  • Minimum Credit Score: 640 for FHA Government insured loans

  • Qualifying income of borrower listed on mortgage application must be below $98,500

  • Home price must be below $400,000

  • Property must be owner occupied

  • Property type must be a Residential 1-4 Unit, a Condo, or Town-home

  • Borrowers Debt-to-Income Ratio (DTI) must be below 45 percent

  • A homebuyer education course required- courses can be taken online or in person. Contact us for a list of approved education course providers

  • Eligible borrowers must meet lenders normal government loan underwriting requirements

Example of Borrower applying for FHA Home is Possible DPA

1. How to Calculate Down Payment Amount Needed

Assume a borrower is seeking a loan for $200,000. So, the minimum FHA down payment amount needed for this government loan program is 3.50 percent.  By multiplying $200,000 x 3.50% = $7,000. So our borrower would need to have a minimum down payment amount of $7,000 for this FHA loan.

 

2. How to Calculate the Size of the Grant Amount Given

To figure the amount of the grant, since it is based off of the amount being borrowed, we must do the following calculations:

  • If the home is $200,000 minus the $7,000 down payment (that was calculated above) the borrower will need a gross mortgage amount of $193,000.

  • Next, FHA charges an 1.75% FHA Upfront Mortgage Insurance Premium (UPMIP), to support the FHA fund. Fortunately, this one-time charge can be added to the loan amount. $193,000 (amount being borrowed) x 1.75% = $3,378

  • So the Net Loan Amount to be issued is = $196,378 ($193,000 loan amount + $3,378 FHA UPMIP Fee)

  • The Down Payment Assistance Program for an FHA loan provides our borrower 4 percent of the loan amount. So the grant amount given will be $196,378 x 4.00% = $7,855

Borrower will have $7,855 in down payment assistance funds. The Borrower's $7,000 down payment requirement that was needed back in Step 1, is completely covered by the grant. Plus, the Borrower will still have $855 left over to apply towards closing costs. 

Who is Eligible for the Nevada Home is Possible Grant Program?

The Nevada Home is Possible Grant Program is not just for new home owners or first time buyers. This program is available to ALL Nevada homeowners, provided they make less than $98,500. See Program Requirements section above, or call us at (702) 420-2250 for more details on this program. 

If you have questions or would like to know more:

I'm very fortunate to have helped so many new and first-time homebuyers navigate today's complicated home buying process.

 

If you are a Nevada homeowner looking to buy a home, but are not sure if you have quite enough funds, give me a call and get a free mortgage quote. I'll help you determine if the Nevada Home is Possible Grant Program is right for you. I've also been able to help countless others who have been turned away when other banks or lenders said, "No."

 

If you are considering buying a home, I urge you to consider Sierra Pacific Mortgage as your next mortgage lender. Our team's dedication to helping our clients prove how we stand out from our competition. Read our past client reviews and testimonials here.

If you would like to know more about the Nevada Home is Possible program, please give me a call- I'm happy to help!

 

 

Franco Manueli

Branch Manager & Residential Mortgage Loan Originator 

NMLS #332420

2580 St. Rose Pkwy., Suite #230

Henderson, NV 89074

Office: (702) 420-2250 

Fax: (855) 689-6691

franco.manueli@spmc.comç

Some products and services may not be available in all states. Programs, rates, terms, and conditions are subject to change without notice. Subject to verification of borrower qualifications, property evaluations and credit approval. Terms and conditions apply. This is not a commitment to lend and not all borrowers will qualify. Sierra Pacific Mortgage Company, Inc. may not be the lender for all products offered. Some loans may be made by a lender with whom Sierra Pacific Mortgage has a business relationship. Sierra Pacific Mortgage Company, Inc. NMLS #1788. Nevada Commissioner of Mortgage License #3268. Additional license info available at: www.nmlsconsumeraccess.org. Equal Housing Lender.

 

 

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