Thankfully, if you're looking to buy a home in Nevada, you may be able to get some help with the down payment. There are several programs available that offer grants or loans for down payment assistance. This can help ease the financial burden and make it possible for you to purchase a home.

How Does Down Payment Assistance Work?

If you're looking to buy a home, one of the first things you'll need to determine is how much of a down payment you can afford. A down payment is a cash percentage of the home's final purchase price, and it typically ranges from 3.5% to 20%. The more you can get together for a down payment, the better - but your unique situation will ultimately determine the right amount. Your savings, monthly income, and expenses will all play a role in determining how much you can afford to put down on a new home.

Understandably, many first-time buyers have a difficult time gathering the cash needed for a down payment. Down payment assistance can help make up the difference.

If you're looking for help with your down payment, there are a number of options available. Most down payment assistance is geared toward first-time homebuyers, and there are loans, grants, and more available through the federal government, state or local housing authorities, and nonprofits. To take advantage of these programs, you'll have to meet some eligibility requirements for income and credit, and the amount of cash rewarded will vary depending on the organization.

Types of Down Payment Assistance Programs

Down payment assistance programs aren't one-size-fits-all. Here's what you need to know about the different types of assistance available to Nevada residents:

Grants

Grants can be a great way to finance your downpayment, however, it's important to understand that grants aren’t just free money - they usually come with strings attached.

To get a grant, you will typically need to meet certain eligibility requirements or fulfill certain conditions. For example, you may need to be a first-time homebuyer, live in a certain area, or have low income.

It's also important to remember that grants are not loans - they don't need to be repaid. However, if you use a grant to buy a home and then sell it within a certain time frame (usually five years), you may be required to repay the grant.

Low-Interest Loans

There are many benefits to low-interest loans, including the fact that they can free up money each month for other expenses. For example, a lower mortgage payment could mean that you have more money available to put towards savings or investments. Additionally, a lower interest rate means you will pay less in interest over the life of the loan, which can save you thousands of dollars.

Zero-Interest, Forgivable Loans

Forgivable loans are a great option if you plan on staying in your home for a while. After a set number of years–usually 5, but up to 20–lenders will forgive these loans entirely. But if you move out before the forgiveness period ends, you may need to pay back some or all of the loan.

Zero-Interest, Deferred-Payment Loans

If you're considering a zero-interest, deferred-payment loan, it's important to understand how they work and what the potential risks are. Here's what you need to know.

With a deferred-payment loan, you're able to postpone your loan payments for a set period of time without accruing interest. This can be a helpful option if you're facing financial difficulties and need some breathing room.

However, keep in mind that most deferred-payment loans will never be forgiven. So if you decide to move before the end of the deferment period, you'll still be responsible for repaying the full amount of the loan.

Nevada Down Payment Assistance Programs Home Is Possible

The Nevada Housing Division’s Home Is Possible program helps homeowners secure up to 5% of their home loan’s value to use toward a down payment or closing costs.
Home is Possible

Home Is Possible for Heroes

Veterans and military personnel (honorably discharged and active duty) plus their surviving spouses can secure lower interest rates and lower monthly payments with this program.
Home Is Possible for Heroes

Home Is Possible for Teachers

Teachers who take advantage of this program can receive up to $7,500 toward their down payment or closing costs, plus forgiveness after living in their new home after five years.
Home Is Possible for Teachers

Workforce Initiative Subsidy for Homeownership (WISH) Grants

Transitioning from renting to owning your very own home is easier with a WISH grant. It offers eligible low- to-moderate income households 4-to-1 matching grants of up to $22,000, applicable toward down payments and closing costs.
WISH Grants

Home At Last Open to more than just first-time homebuyers, the Nevada Rural Housing Authority provides down payment assistance to eligible clients to help with the purchase of a primary residence. Current homeowners who qualify may also use this program to refinance their existing loan.
Home at Last

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