Mortgage in Nebraska
Nebraska is one of the more affordable places to live in the nation. With two main economic centers, Omaha and Lincoln, Nebraska state is home to Warren Buffet, the Cornhuskers, and was the birthplace of stars like Marlon Brando and Fred Astaire. With a median home value of just $167,000, Nebraska is significantly more affordable than many other places. If you're thinking of moving to Nebraska, see how much you'll pay in housing costs (and potentially save!) with our Nebraska mortgage calculator.
Nebraska Mortgage Calculator: Three Options Are Available
Current and prospective Nebraskans typically buy a home using one of three mortgage types.
- Nebraska conventional mortgage: With Nebraska's real estate costs, most people have a traditional conforming loan. These loans receive backing from Fannie Mae and Freddie Mac. For these mortgages, borrowers need at least 3% down, a 620+ credit score, and a debt-to-income ratio of 50% or lower. If you put less than 20% down, you will need to pay private mortgage insurance.
- Nebraska FHA mortgage: The Federal Housing Administration backs loans to help prospective homeowners achieve their dreams. These loans require as little as 3.5% down, with a credit score of 580 or higher. If you have a credit score between 500 and 579, you'll need 10% down. PMI is always necessary.
- Nebraska VA mortgage: For those that served in the military or are actively serving our country, the VA offers loans requiring nothing down and without PMI. The only "downside" is that these loans typically require a credit score of 660 or higher.
Most people thinking of owning a home in Nebraska will wind up with one of these mortgages. There are other programs available for first-time homebuyers to make the process easier.
First-Time Homebuyers in Nebraska
The Nebraska Investment Finance Authority offers three primary programs to help first-time homebuyers get into their first property.
NIFA offers first-time homebuyers a variety of 30-year fixed-rate mortgages. The loan types are the standard conventional, FHA, etc., but they have lower interest rates to make them more affordable for first-time buyers.
Eligibility Criteria: Income and property price limitations apply. Some of these programs require homes to be in a specific county or area.
Homebuyer Assistance Program
This program includes a first and second mortgage loan. The first loan is a standard mortgage, while the second loan provides down payment and closing cost assistance. The second loan can be up to 5% of the purchase price, to a maximum of $10,000. It also has an interest rate of 1%.
Eligibility Criteria: Borrowers must have a household income under certain thresholds. Property price limitations also apply. Borrowers must have at least $1,000 of their money to invest in the property.
Military Home Program
The Military Home Program is available to active service members and honorably discharged veterans. These loans have special interest rates and receive backing from the VA.
Eligibility Criteria: Must be an active or former member of the military.
Nebraska Mortgage Calculator: See How a Move Could Save You Money
Nebraska has plenty of beautiful cities, towns, and homes. If you're thinking of making a move to the Cornhusker State, use our Nebraska mortgage calculator to see how much your home will cost!