Money available for first-time homebuyers

First-time homebuyers and qualifying veterans again have some help in achieving the American dream with the help of the Nevada Rural Housing Authority.

For the second time, the housing authority is offering down payment assistance and low-interest mortgages for qualifying first-time homebuyers and veterans.

"It truly is a grant," said Gary Longaker, executive director of NRHA. "You don't have to pay it back."

Borrowers are considered first-time homebuyers if they haven't owned a home in the past three years. Income requirements for Churchill County buyers are a maximum of $60,300 for a family of two or fewer or $69,345 for a family of three or more. The maximum value of a home in Churchill County eligible for the program is $237,031.

A press release from NRHA states President Bush signed legislation last year waiving the first-time home buying provision for veterans, allowing any veterans meeting income guidelines to become eligible.

"This has a special interest for Fallon which has military and military retirees," Longaker said.

The program's mortgage is a 5.95 percent, 30-year fixed rate and can be used with FHA or Veterans Affairs loans. The down payment assistance grant is a 4 percent grant - which means $6,000 for a $150,000 loan and up to $10,000 for a $250,000 loan.

The biggest hurdle new home buyers face is not the monthly payment, Longaker said. It's the down payment.

The program, originally designed to aid and retain municipal and county employees like police officers, firefighters, teachers and veterans, is able to provide lower-than-average mortgage rates by issuing tax-exempt debt.

"The bonds that we issues allow us to achieve lower mortgage rates for families that participate," Longaker said.

NRHA persuaded municipalities and counties in the state to transfer their private activity bond cap allocations to the NRHA, where it was pooled. The state added $23 million to the pool through matching funds and reallocated them to cities and counties. If no demand is shown for the program, the funds will be recovered by NRHA and transferred to counties that do need them.

"I don't think Fallon will have any trouble using the funds," Longaker said. "I anticipate they'll take full use of them."

Churchill County is allocated $1,571,721 through the program, and Fallon is allocated $989,810. Longaker estimated the program to be "funded out" in four to six months.

"I just don't think we can meet this mortgage rate again," he said.

Interested home buyers should contact one of the participating lenders or a Realtor. Participating lenders in Fallon include Greater Nevada Mortgage Services, Wells Fargo Home Mortgage and Bank of America.

For more information on the program and a complete list of participating lenders, visit www.nvrural.org or call 775-887-1795.