Are you considering becoming a first time home buyer? With the Nevada Home is Possible down payment assistance program your dreams can soon become reality.
“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.”
Maya angelou
When I began my journey to become a first time home buyer I absolutely knew I was going to need down payment assistance. While I knew about the Nevada Home is Possible down payment assistance program I couldnt find any information from anyone who’d actually used it.
It’s insane revisiting this post and seeing where the rates were back in 2021 when I closed on my home Vs. today’s rates. In the event that you MUST buy a home now and are in need of downpayment assistance, I hope this posts helps. Here are the 5 things you need to know about the Nevada Home is Possible downpayment assistance program.
1- Getting Started
You’re probably wondering how to get started. The first thing you’ll need to know is this program is accessed directly by your lender. There are no representatives of the organization that you would need to contact directly. If your lender is listed as an approved lender under the Nevada Home is Possible website you will be able to utilize their program.If you’re unsure, you can ask your lender directly or visit the Nevada Home is Possible approved vendor listing.
2- Qualifying Credit Score
In the wake of COVID the qualifying credit score to utilize the program was raised from 620 to 640 due to many people trying to take advantage of the low interest rates during 2020-2021. As a first time home buyer you may not know your middle credit score of the three credit bureaus will be used. I recommend checking your score with each bureau to identify your score for yourself prior to applying for a home loan.
3- First-Time Homebuyer Education
One of the frustrating aspects (in my opinion) was the information provided to me on the Nevada Home is Possible website regarding the first time home buyer education requirements. One of the requirements is that you complete a first time homebuyer education course. The website advises that the required course is sponsored through Freddie Mac. If you’re unaware, Freddie Mac does not originate loans but it does purchase and guarantees loans on the secondary market. Often times when applying for a mortgage you’re working to meet qualifications for the loan to be sold on the secondary market which is why underwriting is so intense. I digress. After completing the virtual Freddie Mac education course my lender advised (months into my home buying process) that they needed me to complete the Fannie Mae education course. Both courses were fairly simple and very informative as they walked you through the loan process and provided resources for home counseling. It went into detail on budgeting for your mortgage and maintenance. It was an overall useful course for all home buyers. The frustrating part was that the course advertised on the Nevada Home is Possible website was not standardized so I ended up completing two courses from two different entities.
4- Fluctuating Interest Rates
Nevada Home is Possible rates change daily and I have seen them fluctuate substantially in a matter of days. When I entered into contract with my builder in 2020 they had a promotional rate for my home plan of 2.5% (closed early 2021). When using the Nevada Home is Possible program your rate will be based on the guidelines for your credit score and whatever the daily rate was is the time. I was able to secure a rate of 2.875% but there were times when rates were over 3%. This is important to note as it can significantly increase the cost of your monthly mortgage. For fun I’ve included a chart from when I locked my rate in comparison to rates today.
5- Rate Locking
You must be aware of the Nevada Home is Possible rate lock policy. You are unable to lock in your rate until you are twenty days away from closing. I know, I know this absolutely sucks given that rates fluctuate daily. For this reason I personally hawked the Nevada Home is Possible todays rates page. Thankfully, when I was able to lock the rate it was at a percentage I was comfortable with. I immediately e-mailed my lender advising I wanted to lock it in.
I wish you all luck on your first time home buyer journey! Feel free to comment if you have any questions about my experience and I’ll be more than happy to share.
