Down Payment Assistance

SENDD assists member communities and counties to apply for funding through the Nebraska Affordable Housing Program (NAHP) to implement a Homeownership Program (also known as Downpayment Assistance programs) within their towns and/or Counties.  Downpayment Assistance is available to income qualified applicants purchasing existing homes in communities / Counties that have available funding for this activity.

SENDD is currently assisting with downpayment assistance programs in the below areas:

Each program has a separate set of program guidelines developed by the community and/or County that is the recipient of grant funds for such a program.  Typically, guidelines for assistance include:

(1)   Maximum Downpayment Subsidy = Up to 20% of the total project cost, not to exceed $17,000.00.

(2)   Required Buyer Downpayment = 2% of the purchase price as a minimum.  This can be accounted for in closing costs and verified by a completed HUD -1 form.  (Cash Assets in excess of $5,000 may be required to be applied to closing costs and the downpayment.)

(3)   Other Property Requirements: The home to be purchased cannot be located in a 100-Year floodzone area.  The home to be purchased must be located within an area zoned as “residential” or “agricultural”.  If within the County, the acreage on which the home is located must meet zoning regulations and be a maximum of 3-acres.  The home to be purchased must pass a Housing Quality Standards (HQS) inspection prior to closing.  The home to be purchased must pass a “Lead Paint Hazard Screening” prior to purchase, especially if the home was constructed prior to 1978.  The home must be the “primary residence” of the new owner(s).

(4) Applicant Income Qualification:  Applicant eligibility is based on income limits and family size as predetermined by HUD for each County.

(5) Applicant Needs Primary/Lead Lender: The applicant is required to have a primary/lead lender finance the remaining balance of the home purchase, as the HOP assistance will be a “deferred conditional loan”, as a second mortgage.  Therefore, the applicant must apply and secure financing from a financial institution of their choosing.  Land contracts will not be considered. Program staff may assist clients in locating non-standard financing.

For more information or to receive an application and/or program guidelines for one of the above listed homeownership programs, please contact the SENDD office at 402-475-2560.