Military Home Program First-Time Homebuyer Assistance Programs

Military Home Program: Nebraska’s Salute to First-Time Military Homebuyers

Buying a first home can feel like rucking up a hill in full gear. Nebraska’s Military Home Program lightens that load by pairing affordable mortgages with down-payment assistance exclusively for service members, veterans, and qualifying spouses. If you’ve worn a uniform and now dream of hanging a welcome sign on your own front porch, this guide unpacks every angle—benefits, eligibility, insider tips, and answers to burning questions.

What Is the Military Home Program?

The Military Home Program is a statewide initiative administered by the Nebraska Investment Finance Authority (NIFA). Think of it as a “thank-you” check written in the form of:

• Competitive first mortgage rates—often 0.25–0.50% below market.
• Optional down-payment and closing-cost assistance up to 5% of the loan amount.
• Flexibility to finance repairs or energy-saving upgrades under certain loan types.

Unlike generic programs, this one never expires due to “fund-depletion alerts.” Funds are set aside exclusively for Nebraska’s military community, so eligible buyers rarely face a shut-out situation.

How Does Nebraska’s Military Home Program Work?

1. Pre-qualify with a NIFA-approved lender. They’ll crunch your income, credit, and debt-to-income ratio.
2. Select a mortgage option. Conventional, FHA, USDA, and VA loans are all on the table—letting you choose the best fit.
3. Add the assistance layer. If you need help with upfront costs, a subordinate 0% second loan is tacked on and repaid only when you sell or refinance.
4. Close and move in. Enjoy a lower monthly payment and the pride of homeownership.

According to NIFA’s FY22 annual report, military-focused borrowers saved an average of $143 per month when compared to standard market loans—money that can go toward daycare, college savings, or that long-overdue fishing boat.

Eligibility Requirements

The Military Home Program keeps red tape surprisingly thin. You must:

• Be active-duty, reserve, National Guard, veteran, or surviving spouse.
• Meet first-time buyer status unless purchasing in a federally designated targeted area.
• Occupy the home as a primary residence within 60 days of closing.
• Satisfy income limits that range from roughly $112,000 to $131,000 based on household size and county.
• Hold a minimum 640 credit score (680 for conventional loans).

Property and Loan Guidelines

Eligible properties include single-family homes, condos, and certain duplexes. Purchase price caps run from $349,525 to $449,825 depending on the county—numbers that comfortably eclipse the median sales price of $275,000 reported by the REALTORS® Association of Lincoln in early 2023.

Is the Nebraska Military Home Program Only for First-Time Buyers?

Mostly—but there’s a strategic loophole. The program defines a first-time buyer as someone who hasn’t owned a primary residence in the past three years. However, if you purchase in a targeted census tract (primarily urban revitalization zones), the three-year rule vanishes. This exception allows seasoned homeowners—think retired Chiefs downsizing from an out-of-state posting—to tap the same low rates and assistance.

Targeted areas can be cross-checked on NIFA’s interactive map. In 2024, neighborhoods near Offutt AFB, Grand Island, and South Omaha made the list, combining affordability with growth potential.

How Much Assistance Can I Receive Through the Military Home Program?

The down-payment/closing-cost loan equals up to 5% of the first mortgage. Buy a $250,000 home with a 97% LTV FHA loan and you could snag $12,125 in zero-interest aid. Borrowers repay the second lien only when refinancing or selling—no monthly drag on your budget.

For buyers opting out of the assistance layer, NIFA often sweetens the pot with an even lower first-mortgage rate. Run both scenarios through your lender’s mortgage calculator to see which path wins.

From Barracks to Backyard: Staff Sergeant Ramirez’s Journey

Staff Sergeant Luis Ramirez spent nine years hopping duty stations. In 2023, he received orders to Lincoln and decided it was time to plant roots for his family of four—and their rescue husky. With $6,000 in savings, he worried Nebraska’s median 3-bedroom list price would push him back into renting.

His lender introduced the Military Home Program. By layering a 4.99% fixed-rate FHA mortgage with $11,400 in assistance, Ramirez closed on a $235,000 ranch home outside city limits. The best part? His monthly payment landed $179 below the average BAH for an E-6 in Lancaster County, leaving wiggle room for youth soccer fees and a new grill.

Tips to Strengthen Your Application

• Pull your free credit report early. Dispute errors or pay down revolving balances to boost your score ahead of underwriting.
• Document non-taxable income. BAH and certain combat pay can be “grossed up” by 25% for qualifying, giving you more buying power.
• Aim for a pre-approval letter before house hunting. Sellers still prefer sure-footed buyers in Nebraska’s 1.9-month inventory market.
• Look at energy-efficient improvements. An FHA Energy Efficient Mortgage (EEM) can roll solar panels or insulation upgrades into the same loan, paired with the program’s low rate.

Combining the Military Home Program With Other Nebraska Resources

Stacking benefits is legal—no court-martial here. Consider:

• Homeownership Set-Aside Program from the Federal Home Loan Bank of Topeka—up to $7,500 in grants.
• Local closing-cost grants from city housing departments in Kearney, Norfolk, and Bellevue.
• VA Specially Adapted Housing grants if you have a service-connected disability and need accessibility modifications.

By dovetailing these options, some borrowers have covered 100% of their upfront costs, effectively stepping into their home with just a signature and a salute.

Frequently Asked Questions

Your Turn to March Home

Nebraska doesn’t hand out parade ribbons lightly, but it does salute your service with real dollars and cents. Whether you’re calibrating your next PCS or locking in retirement plans, the Military Home Program could be your ticket to stable, affordable housing. Ready to trade base lodging for your own address? Connect with a NIFA-certified lender today and start mapping out your homeownership mission.

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