First-Time Home Buyer Programs in Nebraska 2026

The Nebraska Investment Finance Authority (NIFA) runs the state’s first-time buyer loans under its First Home family: First Home, First Home Targeted, Military Home and Homebuyer Assistance (HBA). HBA pairs a NIFA first mortgage with a second loan of up to 5% of the purchase price at 1%, repaid monthly over 10 years. Repeat buyers go to Welcome Home.

Every NIFA loan starts with a participating lender. NIFA says its loans “are originated through approved Participating Lenders, not directly through NIFA.” Those lenders check the income, price and credit rules below. NIFA’s posted rate sheet read for this page carried the stamp “Last changed 09/24/2026 at 9:00 a.m,” so no rate is quoted here. For the down-payment side on its own, see the Nebraska down payment assistance guide.

Picking your NIFA program

The HBA first mortgage costs more than a plain First Home loan. NIFA explains that the rate “is higher because it includes down payment and closing cost assistance.” A buyer who has the cash can take First Home and skip the second loan. NIFA’s lender manual describes Military Home and First Home Targeted as the products “offering the lowest NIFA interest rate.”

NIFA’s first-time rule has a renter twist

NIFA counts you as a first-time buyer if you “haven’t owned and occupied a primary residence within the past three years.” The word that matters is occupied. Say you own a house but have rented it out to tenants for three or more years. NIFA says that “to us that’s still considered a first-time homebuyer.”

Two groups skip the rule entirely. One is qualified veterans discharged under conditions other than dishonorable. A veteran’s spouse is covered too, but active-duty members are not. The other is anyone buying in a target area. On NIFA’s program page, the counties with targeted census tracts are Adams, Douglas, Jefferson, Lancaster, Saline and Scotts Bluff. NIFA’s geocoding map shows whether a particular address falls inside one.

NIFA can also grant a case-by-case exception if you lost a home in one of three ways: through a divorce with no sale proceeds, a natural disaster, or a forced job relocation. The lender sends the documents to NIFA for review.

Income and price caps, effective July 13, 2026

First Home, First Home Targeted, Military Home and HBA use county income limits set by household size. For example:

• Douglas County outside a target tract: $114,000 for one or two people and $131,100 for three or more.
• Douglas County target tracts: $136,800 and $159,600.
• Counties with no row of their own, outside a target tract: the “All Other” row, $105,700 and $121,555. Sixteen other counties, including Lancaster ($107,500 and $123,625) and Sarpy ($114,000 and $131,100), have their own higher limits on NIFA’s income table.

The purchase price cap for a one-unit home is $398,000 outside target areas and $485,500 inside them.

Welcome Home skips the county table. Its household income limit is $182,800 in every county, and its price cap is $485,500 for one unit or $607,000 for two.

NIFA’s household income counts the borrower, the co-borrower and a non-borrowing spouse. Another adult living in the home counts only if that person will have an ownership interest. Interest income from assets over $5,000 is included. NIFA takes your current monthly gross and projects it over 12 months. NIFA notes that for program eligibility this “is only used by NIFA,” and that “in most cases” the lender’s underwriting figure is more conservative.

Homebuyer Assistance: how the 5% second loan behaves

• It is a loan, not a grant. The rate is 1%, and payments of principal and interest start the same month as the first mortgage and run 120 months. You can prepay it at any time without penalty.
• The monthly HBA payment counts in your housing-expense ratio when the lender underwrites you.
• NIFA’s manual says NIFA “does not require a minimum investment.” Any required contribution comes from the FHA, VA, RD or conventional rules.
• No HBA money comes back to you at closing. Cash back is limited to items you paid out of pocket, plus up to $250, and HBA funds cannot pay off other debt.
• HBA cannot be assumed. NIFA subordinates it only if you later refinance through NIFA’s own Refinance Home product.

Welcome Home Assistance works the same way: up to 5% of the price, 1%, 120 months, with no minimum investment required by NIFA.

Credit, education and occupancy under NIFA rules

• Credit: the minimum score is 640 with total DTI up to 45%. At 660 and above, NIFA allows up to 50%. According to NIFA, “If you do not have a credit score, you may still qualify for a NIFA loan.” Manual underwriting then sets its own limits.
• Homebuyer education: on First Home, First Home Targeted, Military Home and HBA loans, every occupying borrower who signs the note must finish a NIFA-approved class before closing, including veterans and target-area buyers who skip the first-time rule. NIFA lists online providers HomeView, Credit Smart, Framework and eHome America, plus others. The certificate is valid for 12 months, and you must close within that window. Repeat buyers using Welcome Home do not need the class.
• Occupancy: you must move in within 60 days of closing.
• Loan types: conventional, FHA, USDA Rural Development or VA. Military Home is limited to government loans.

NIFA pays back the recapture tax

First Home, First Home Targeted, Military Home and HBA first mortgages are financed with tax-exempt mortgage revenue bonds, so they can trigger federal recapture tax. Welcome Home loans are funded with taxable bonds or other sources at market rates, and NIFA’s Welcome Home lender manual has no recapture section. For a First Home-family loan, the tax applies only if you sell within nine years, realize a net gain, and your income that year exceeds the IRS limit. The tax is capped at 6.25% of the original loan. Nebraska’s twist is that NIFA has a reimbursement policy for First Home Program loans closed on or after June 1, 2004. Send NIFA the request form, IRS Form 4506T and your return for the year of the sale by July 15 of the following year, and NIFA repays the recapture tax you actually paid. The NIFA loan must still have been in place when you sold, meaning it was not refinanced. NIFA puts processing at 90 to 120 days.

What to bring to a NIFA lender

NIFA’s own document list for the application:

• Borrowers bring one year of federal tax returns.
• A non-borrowing spouse or other occupant brings the last three years of returns, and the lender can order IRS transcripts if copies are missing.
• Bring W-2s and 30 consecutive days of pay stubs.
• Bring current bank statements covering 30 days.
• Bring your education certificate.
• Qualified veterans bring a DD-214.

For numbers, use the mortgage calculator and how much house you can afford. Plan Nebraska closing costs alongside the HBA second. For the insured loan underneath, see FHA requirements or the VA loan guide.

Nebraska first-time buyer questions

I own a house in Kearney that has been rented out since 2022. Can I use First Home?

Yes. NIFA’s test is whether you owned and occupied a primary residence in the past three years. A home occupied by renters for three or more years does not count against you.

Is HBA money forgiven?

No. HBA is a 1% second loan with monthly payments over 10 years.

I earn $150,000 and live in Omaha. Do I have any NIFA option?

Welcome Home. Its $182,800 statewide limit applies to first-time and repeat buyers alike, and Welcome Home Assistance adds the same 5% second loan. That income is over the First Home limit for Douglas County outside target tracts, and over the target-tract limit for households of one or two.

Does NIFA offer a Mortgage Credit Certificate?

NIFA’s current program list for lenders names First Home, Homebuyer Assistance, Military Home, Welcome Home, Welcome Home Assistance and Build Home. There is no MCC on it.

I’m building a new home. Can I lock a NIFA rate?

Yes. Build Home extends the NIFA rate lock to up to 180 days while the house is under construction. It works with First Home, Welcome Home, Military Home and both assistance programs.

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