Nevada home buying program raises income limit
April 21, 2017
The Nevada Housing Division (NHD) has raised the household income limit for its Home Is Possible programs, making more Nevadans eligible for down payment assistance. Since the programs started in 2014, the income limit has been $95,500. In keeping with Nevada's rising incomes, the limit has been raised 3 percent to $98,500.
"Over the past few years, wage growth has averaged 2.3 percent in Nevada according to the Nevada Department of Employment, Training and Rehabilitation," explained NHD Administrator C.J. Manthe. "This statistic is a good indicator of how incomes are rising for working families and it shows that our state is recovering from the recession. Part of that recovery is getting even more families into homes of their own, which is where we come in."
For homebuyers securing conventional loans through Home Is Possible programs, NHD has even more good news to share: the debt-to-income (DTI) ratio was raised to 50 percent (from 45). "This change will help homebuyers who are right on the cusp of qualifying for a loan to qualify for HIP bonus money, tax credits and/or favorable interest rates," Manthe explained.
The HIP programs are designed to help more credit-worthy families get into homes – people who can afford a monthly mortgage payment, but may be having a hard time coming up with a down payment. It provides a (non-repayable) down payment grant of up to 5 percent of the loan amount for Nevada families with a qualifying household income. Homebuyers must also have a minimum credit score of 640 and be purchasing a home for less than $400,000. The buyer must meet standard underwriting requirements, complete a homebuyer education course and live in the home as a primary residence.
There are additional incentives for Nevada educators and veterans through Home Is Possible For Heroes and HIP For Teachers.