Nebraska first-time homebuyer grants and down payment assistance (2026)

HBA and WHA are 1% loans you pay every month

Many states forgive their down payment seconds or defer them until you sell. Nebraska does neither. Both NIFA manuals set the same second-mortgage terms ⁠⁵⁠⁶:

• Amount: up to 5% of the home’s purchase price.
• Rate and term: 1% a year, fully repaid over 120 months (10 years).
• Payments: principal and interest start the same month as the first mortgage payment. The lender counts the second-loan payment in your housing expense ratio.
• Prepayment: allowed at any time with no penalty.
• Not assumable: both must be paid off before anyone can assume the first mortgage. NIFA subordinates an HBA second only for its own Refinance Home loan and never subordinates a WHA second.

As an illustration, 5% of a $250,000 home is $12,500. At 1% over 120 months that works out to about $110 a month on top of the first mortgage (our calculation from the manual’s terms). The assistance also raises the first-mortgage rate. NIFA’s rates posted Oct. 16, 2026 were ⁠¹:

Rates change without notice. Lenders may charge an origination fee of up to 0.50% on Welcome Home and WHA loans. NIFA does not allow origination or discount fees on First Home loans ⁠¹⁠⁵⁠⁶.

The second-loan money goes only to the down payment and closing costs. NIFA forbids any of it coming back to you in cash. Cash back is limited to items you paid out of pocket (earnest money, appraisal, inspection, insurance) plus at most $250 for other items. HBA funds cannot pay off your existing debts at closing ⁠⁵. NIFA does not require a minimum cash investment from you on HBA ⁠⁵.

Choosing between the First Home track and Welcome Home

First Home and HBA require that you have not owned and lived in a primary residence in the past three years. A home you owned but rented out for three years or more does not count against you. Qualified veterans discharged other than dishonorably and buyers in a target area are exempt. NIFA may also grant an exception if you lost a home through divorce without sale proceeds, a natural disaster or a forced job relocation ⁠¹. Military Home, at the lowest rate, is for active-duty or reserve members, who must meet the first-time rule, and for qualified veterans or their spouses, who need not. A DD-214 is required ⁠¹⁰.

Welcome Home and WHA accept first-time and repeat buyers. There is one statewide income limit, $182,800, regardless of household size ⁠³⁠⁴. The higher rate is the tradeoff for that flexibility. If you qualify for both, HBA’s first mortgage was 0.625 points cheaper than WHA’s on Oct. 16, 2026 ⁠¹.

Both tracks require that you move in within 60 days of closing ⁠¹⁠³. Both offer FHA, VA, USDA Rural Development and conventional loans (Fannie Mae HFA Preferred or Freddie Mac HFA Advantage) ⁠²⁠⁵.

2026 county income limits and the $398,000 price cap

First Home and HBA income limits are set by county. Outside target areas they equal 100% of median family income for 1-2 people and 115% for 3 or more. In target areas they are 120% and 140% ⁠⁵. NIFA counts the income of every adult who will live in the home and is a borrower, co-borrower or non-borrowing spouse, projecting current monthly gross pay over 12 months. It includes interest income from assets over $5,000 ⁠¹.

Seventeen counties have their own non-target limit, from $105,800 (Buffalo) to $118,200 (Saunders); every other county uses the “All Other” row. The full list is in NIFA’s limits sheet ⁠⁴.

Purchase price caps are statewide. A one-unit home can cost up to $398,000, or $485,500 in a target area. Two units: $497,500 / $607,000. Three units: $621,875 / $758,500. Four units: $777,350 / $948,500 ⁠¹. Welcome Home and WHA allow $485,500 for one unit and $607,000 for two ⁠³. On a purchase from a relative, the higher of price or appraised value must fit under the cap ⁠¹.

To check whether an address is in a target area (census tracts in the counties listed above), use the geocoding map linked from NIFA’s First Home page or ask your lender ⁠¹.

Credit score and DTI rules NIFA layers on top

NIFA sets a 640 minimum credit score on conventional and government loans with a 45% maximum total debt-to-income ratio. With a 660 score or higher, it allows up to 50% ⁠¹. Manufactured homes need 660 at a 45% DTI cap ⁠⁵. Manual underwriting is tighter. VA and USDA manual files need 640, a 41% total DTI cap (USDA also caps housing at 34%) and two months of reserves. FHA manual underwriting is not allowed. Fannie Mae HFA Preferred manual files need 680 to 720 depending on DTI and reserves ⁠⁵. Buyers with no credit score can still qualify through non-traditional credit manual underwriting ⁠¹⁠⁵.

Education and the participating-lender rule

Education. Every occupying borrower who signs the note on a First Home or HBA loan must complete a NIFA-approved class before closing. On Welcome Home and WHA, only first-time buyers must ⁠⁵⁠⁶. Approved means a HUD-approved counseling agency or a course meeting the National Industry Standards. Online options NIFA lists include Fannie Mae HomeView, Freddie Mac CreditSmart Homebuyer U, Framework and eHome America. In-state providers include Family Housing Advisory Services and Credit Advisors Foundation in Omaha, NeighborWorks Lincoln, Blue Valley Community Action in Fairbury and High Plains Community Development in Chadron ⁠⁵⁠⁷. The certificate must show your name and the provider’s name, and you must close within 12 months of it ⁠⁷. Some providers charge a fee ⁠⁵.

Lenders. NIFA loans are made only by its Participating Lenders, more than 70 banks, credit unions and mortgage companies on its October 2026 list. CharterWest Bank, Fairway Independent Mortgage, Pinnacle Bank, FNBO and Lincoln Federal Savings Bank closed the most NIFA loans last year ⁠⁹. If your lender is not on the list, NIFA asks you to email [email protected] ⁠⁹.

Recapture tax and NIFA’s reimbursement

Bond-financed First Home loans can trigger federal recapture tax. It applies only if you sell within nine years, make a net gain, and have income above the IRS limit in the year of sale. It is capped at 6.25% of the original loan amount ⁠⁸. For loans closed on or after June 1, 2004, NIFA reimburses recapture tax you actually paid. The loan must not have been refinanced, and you must send NIFA a reimbursement form, IRS Form 4506-T and your tax return by July 15 of the year after the sale. Expect 90 to 120 days ⁠⁸.

Lincoln and Omaha programs beyond NIFA

• Lincoln, First Time Home Buyer Program. The City of Lincoln Urban Development Department runs this through NeighborWorks Lincoln for homes inside city limits and households at or below 80% of median income ⁠¹². The help is a 0% payment-deferred loan covering a 5% down payment and closing costs, plus limited repairs. It is due when you sell or stop living in the home. Forgiveness rates depend on location ⁠¹³. In Neighborhood Revitalization Strategy Areas or low-to-moderate income areas, you can get up to $35,000 for down payment, closing costs and repairs. Repairs are capped at $25,000. The price and appraisal cap is $265,905 as of Sept. 1, 2026 ⁠¹⁴. You need a 640 credit score, $1,000 of your own money, two years of steady work, and no bankruptcy discharge in five years. You also need a first mortgage from one of NWL’s lending partners. Every adult must attend all four sessions of NWL’s HUD-approved course, and the course often has a one- to three-month waitlist ⁠¹²⁠¹⁴. Assistance depends on available funds ⁠¹³.
• Omaha, Omaha 100. This nonprofit community development lender offers down payment assistance and conventional loans at 97% loan-to-value without mortgage insurance. It does not publish amounts online. As of Oct. 20, 2026 its mortgage application is closed until Nov. 1, 2026. It requires homeowner education from FHAS, eHome America or Credit Advisors Foundation. It also charges a non-refundable credit report fee of $132.44 for a single applicant or $212.63 for a married couple ⁠¹⁵.

We could not open the City of Omaha’s own housing pages to verify any city-run down payment program, so none is listed here.

Getting a NIFA HBA or WHA loan, step by step

1. Check your fit

   Compare your household income with the July 13, 2026 county table and the home price with the cap. First-time buyers within the limits should price out HBA; repeat buyers or higher earners should use WHA ⁠³⁠⁴.

2. Start homebuyer education

   Take a NIFA-approved course early. The certificate stays valid for 12 months ⁠⁷.

3. Contact a Participating Lender

   Pick a loan officer from NIFA’s list or its NIFA Specialist directory. They review your credit, income and debts and issue a pre-approval ⁠⁸⁠⁹.

4. Gather documents

   Borrowers need their latest federal tax return. A non-borrowing spouse or occupant needs three years of returns. You also need W-2s, 30 days of consecutive pay stubs, 30 days of bank statements, retirement statements, the education certificate, and a DD-214 if you are a veteran ⁠⁸.

5. Sign a purchase agreement

   The lender can reserve your NIFA loan in NIFA’s Lender Online system only after both parties sign it ⁠⁵. New construction can use Build Home for a 180-day lock ⁠⁵.

6. Close both loans

   The lender funds the first and second mortgages at closing and collects payments until NIFA’s master servicer buys them ⁠⁵. Keep the recapture notice from closing ⁠⁸.

If one lender turns you down, you can apply with another Participating Lender. NIFA’s Homeownership Team answers questions at 800-204-6432, Monday to Friday, 8 a.m. to 5 p.m. Central ⁠¹⁠⁹. Other states are compared on the first-time homebuyer grants page, and other Nebraska guides are on the Nebraska page.