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By Tyler Thompson · Licensed Real Estate Agent · Updated May 7, 2026

Homebuyer Programs in Lincoln, NE (2026)

Population: 294,856 | Median home price: $310,000 | Est. closing costs: $6,000 - $9,500

Skyline of Lincoln, NE

Lincoln is Nebraska's state capital and the second-largest city in Nebraska, anchored by the University of Nebraska and a steady, education- and government-driven economy. With a median home price near $310,000, Lincoln is more affordable than the national average but down payment hurdles still keep many first-time buyers on the sidelines. Lincoln buyers can stack significant assistance: the Nebraska Investment Finance Authority (NIFA) Homebuyer Assistance Program offers up to 5% of the purchase price (capped at $10,000) as a 1% second mortgage, and the FHLBank Topeka Homeownership Set-aside Program (HSP) provides up to $15,000 as a forgivable grant for buyers at or below 80% AMI. Locally, NeighborWorks Lincoln (administering City of Lincoln Urban Development funds) offers a 5% interest-free deferred loan covering down payment and closing costs, Hartland Homes' Homeownership Opportunity Program provides up to $20,000 in zero-interest, zero-payment assistance for new-construction homes, and Habitat for Humanity of Lincoln offers 0% interest mortgages for income-qualified families. Combining a NIFA HBA second mortgage with an FHLBank HSP grant and a NeighborWorks Lincoln deferred loan can stack tens of thousands of dollars toward a home purchase, making homeownership achievable with as little as $1,000 of buyer's own funds.

City Programs in Lincoln

Lincoln Housing Authority HCV Homeownership Program
Type:
Government-Insured Mortgage
Amount:
Monthly homeownership assistance via Housing Choice Voucher payments
First-time only:
Yes

State Programs in Nebraska

FHLBank Topeka Homeownership Set-aside Program (HSP)
Type:
Forgivable Loan
Amount:
Up to $15,000
First-time only:
Yes
NIFA First Home Program
Type:
Government-Insured Mortgage
Amount:
30-year fixed-rate first mortgage at competitive below-market rates
First-time only:
Yes
NIFA First Home Targeted Program
Type:
Government-Insured Mortgage
Amount:
30-year fixed-rate first mortgage at competitive below-market rates
First-time only:
No
NIFA Homebuyer Assistance Program (HBA)
Type:
Repayable Loan
Amount:
Up to 5% of purchase price (capped at $10,000)
First-time only:
Yes
NIFA Welcome Home Program
Type:
Government-Insured Mortgage
Amount:
30-year fixed-rate first mortgage at competitive below-market rates
First-time only:
No

Federal Programs

FHA Loans
Type:
Government-Insured Mortgage
Amount:
Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:
No
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:
No
Good Neighbor Next Door (HUD)
Type:
Government Property Sale Program
Amount:
50% discount off the list price of HUD-owned homes
First-time only:
Yes
Home Possible Mortgage (Freddie Mac)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HomeReady Mortgage (Fannie Mae)
Type:
Government-Guaranteed Mortgage
Amount:
Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:
No
HUD $100 Down Program
Type:
FHA-Financed HUD REO Purchase
Amount:
Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:
No
USDA Rural Development Loans
Type:
Government-Guaranteed Mortgage
Amount:
100% financing (no down payment required); loan amount up to appraised value
First-time only:
No
VA Loans
Type:
Government-Guaranteed Mortgage
Amount:
No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:
No

Nonprofit Programs

Habitat for Humanity of Lincoln Homebuyer Program
Type:
Government-Insured Mortgage
Amount:
Affordable home with 0% interest mortgage; sold at no profit
First-time only:
No
Hartland Homes Homeownership Opportunity Program (HOP)
Type:
Deferred Loan
Amount:
Up to $20,000
First-time only:
Yes
NeighborWorks Lincoln Homeownership Program
Type:
Deferred Loan
Amount:
5% of purchase price plus closing costs
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. NIFA's statewide household income limit is $175,500 (effective 7/7/2025) and most local Lincoln programs target buyers at or below 80% of Area Median Income for Lancaster County. NeighborWorks Lincoln requires applicants to have at least $1,000 of their own money and continuous employment for the past 2 years. Lancaster County is also a NIFA Target Area, which means qualified veterans and certain buyers may not need to meet first-time buyer requirements.

Step 2:

Complete approved homebuyer education. NeighborWorks Lincoln offers a HUD-approved series of four in-person classes, typically held on the second and third Mondays and Wednesdays of each month from 6

Step 3:

Contact a local housing partner. For NeighborWorks Lincoln down payment assistance, visit nwlincoln.org or call their office. For Habitat for Humanity of Lincoln applications (open August 15 through September 5 each year), call 402-477-9184. For new-construction options with Hartland Homes Homeownership Opportunity Program, contact Hartland Homes through Nebraska Housing Resource.

Step 4:

Get pre-approved through a NIFA participating lender. NIFA loans must be originated by approved lenders. Your loan officer will determine which combination — HBA second mortgage, First Home Targeted Program, or Welcome Home Program — best fits your situation, and whether FHLBank Topeka HSP funds are available through that lender.

Step 5:

Find a home within program limits. NIFA's one-unit purchase price limit is $485,500. NeighborWorks Lincoln allows purchases anywhere within Lincoln city limits but offers special incentives, including loan forgiveness, for purchases in specific geographic areas. Hartland Homes assistance is restricted to their newly built homes in Lincoln.

Step 6:

Submit your application. Plan for 30-60 days from contract to close. Your lender coordinates the first mortgage, NIFA second, and any FHLBank HSP or NeighborWorks Lincoln assistance. Buyers must contribute a minimum of $1,000 of their own money to most NIFA and NeighborWorks programs.

Step 7:

Close on your home and maintain occupancy. NeighborWorks Lincoln assistance is due upon sale of the property or if the buyer no longer occupies as primary residence. FHLBank HSP requires 5 years of primary-residence occupancy for full forgiveness. NIFA HBA second mortgage is repayable over 10 years.

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