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About the NIFA First Home Program
The NIFA First Home Program is a 30-year fixed-rate first mortgage for first-time buyers, financed by the Nebraska Investment Finance Authority and closed through NIFA Participating Lenders. On October 9, 2026, NIFA posted rates of 6.625% for government loans and 7.000% for conventional loans. It is NIFA's base program for buyers who do not need down payment help, priced below the Homebuyer Assistance and Welcome Home tiers.
To qualify for the NIFA First Home Program, household income must fall under county limits effective July 13, 2026. In most non-target counties the cap is $105,700 for one or two people and $121,555 for three or more. Douglas, Sarpy, Cass and Washington counties allow $114,000 and $131,100, Lancaster allows $107,500 and $123,625, and Saunders tops the list at $118,200 and $135,930. NIFA counts income from every adult borrower, co-borrower and non-borrowing spouse, which is stricter than many buyers expect. The minimum credit score is 640, with total debt-to-income up to 45%, or 50% at 660 and above. You must not have owned and occupied a primary residence in the past three years, though qualified veterans and target-area buyers are exempt. The home must be in Nebraska and occupied within 60 days of closing.
First Home works with Conventional, FHA, USDA Rural Development and VA loans, and the purchase price cap is $398,000 for a one-unit home outside target areas. There is no forgiveness schedule because there is no second loan. Buyers who need cash help use NIFA Homebuyer Assistance instead, which carries a 6.875% government first rate plus a 1% second loan of up to 5% of the price. Welcome Home, NIFA's higher-income option, runs 7.250% government with a $182,800 income limit.
How much assistance
Eligibility
- Income limits: Effective 7/13/2026 (non-target areas): $105,700 for 1-2 persons / $121,555 for 3+ in most counties; $114,000 / $131,100 in Douglas, Sarpy, Cass and Washington; $107,500 / $123,625 in Lancaster; up to $118,200 / $135,930 in Saunders. Target areas use higher First Home Targeted limits.
- Purchase price limit: $398,000
- First-time buyer required: Yes — Has not owned and occupied a primary residence in the past 3 years. Exceptions: qualified veterans (other than dishonorable discharge), target-area purchases, and case-by-case for a home lost to divorce, natural disaster or forced job relocation.
- Credit score minimum: 640
- Geographic restrictions: Property must be located in Nebraska.
- Homebuyer education required: Yes
How to Apply for NIFA First Home Program
Step 1: Check your county income and price limits
Look up your county on NIFA's information sheet, effective July 13, 2026. Most counties cap income at $105,700 for one or two people and $121,555 for three or more, and one-unit homes at $398,000 outside target areas. If the home is in a target census tract in Adams, Douglas, Jefferson, Lancaster, Saline or Scotts Bluff County, the higher First Home Targeted limits apply instead. Quinn the QualBot on nifa.org gives a quick screen.
Step 2: Complete NIFA-approved homebuyer education
Every occupying borrower who signs the note must finish a NIFA-approved class before closing. Approved online options include Fannie Mae HomeView, Freddie Mac CreditSmart, Framework and eHome America, with more listed at nifa.org/homebuyers-renters/homebuyer-education. Make sure the certificate shows your name and the provider's name, then give it to your lender. Certificates stay valid for 12 months, so you must close within a year of finishing the course.
Step 3: Gather income and asset documents
NIFA reviews income more closely than a standard mortgage. Borrowers and co-borrowers need the most recent year of federal tax returns, while a non-borrowing spouse needs three years. Bring W-2s, 30 consecutive days of pay stubs, 30 days of bank statements, and recent retirement account statements. Self-employed buyers need a year-to-date profit and loss statement, and qualified veterans claiming the first-time exemption need a DD214.
Step 4: Choose a NIFA Participating Lender
Only NIFA Participating Lenders can originate First Home loans, and the directory is at nifa.org/homebuyers-renters/participating-lenders. The loan officer checks your 640 minimum credit score, your debt-to-income ratio against the 45% cap, and your household income using NIFA's projected 12-month figure. Ask which loan type fits best: Conventional, FHA, USDA Rural Development or VA. Get a written pre-approval before you start touring homes.
Step 5: Find an eligible home and make an offer
The home must be in Nebraska and priced at or below the limit for its area and unit count: $398,000 for one unit and $497,500 for two units outside target areas. Two- to four-unit properties must be at least five years old unless the home is a duplex in a target area. NIFA lists trained agents, called NIFA Realtor Specialists, at nifa.org. You must move in within 60 days of closing.
Step 6: Lock the rate, sign the notices and close
After your offer is accepted, the lender reserves the loan with NIFA at the posted rate, which can change without notice, so lock early. You receive a Recapture Tax Notice at application and again at closing; keep the closing copy, because it is needed if you sell within nine years. The lender then underwrites the file and schedules closing. Questions go to NIFA at 800-204-6432.
Real Cost Example
On a $290,000 home in a non-target Omaha neighborhood, the NIFA First Home Program fits under the $398,000 price cap, and Douglas County income limits are $114,000 for one or two people and $131,100 for three or more. With FHA's 3.5% minimum, the down payment is $10,150 and the base loan is $279,850. At NIFA's 6.625% government rate, principal and interest run about $1,792 per month.
Estimated closing costs in the Omaha area run $6,000 to $8,500, so total cash to close lands near $16,150 to $18,650 before prepaid items. First Home adds no assistance toward that amount. The same loan at Welcome Home's 7.250% government rate would cost about $1,909 per month, so First Home saves roughly $117 monthly, or about $1,400 a year.
A buyer who cannot cover $16,150 should compare NIFA Homebuyer Assistance. Its 1% second loan can reach 5% of the price, or $14,500 here, though the first loan rate rises to 6.875%, about $1,838 per month. FHLBank Topeka's HSP offers up to $15,000 at 80% of AMI, but its 2026 window closed September 30, 2026, so confirm the next round with your lender.
Combining With Other Programs
The NIFA First Home Program is built for buyers who do not need NIFA down payment help, so it does not carry NIFA's 1% second loan. The main outside source in Nebraska is the FHLBank Topeka Homeownership Set-aside Program, which provides $2,500 to $15,000 per household earning at or below 80% of AMI. HSP is reserved through FHLBank Topeka member institutions, carries a five-year retention agreement, and ran its 2026 round from March 2 through September 30, 2026.
First Home cannot be combined with NIFA Homebuyer Assistance, Welcome Home or the Military Home Program, because each is a separate NIFA first mortgage with its own rate. Veterans who qualify for Military Home, at 6.375% government, must use that program instead. Layering HSP on a NIFA loan requires a lender that is both an FHLBank Topeka member and a NIFA Participating Lender. Call NIFA at 800-204-6432 to confirm.
Two NIFA-specific levers lower cost without a second loan. First, check whether the home sits in a target census tract, because First Home Targeted cuts the government rate to 6.375% and raises the one-unit price cap to $485,500. Second, NIFA reimburses any federal recapture tax paid on a sale within nine years, as long as the NIFA loan was never refinanced.
Pros and Cons
The NIFA First Home Program's biggest advantage is a lower fixed rate than NIFA's other non-targeted first mortgages. At 6.625% government on October 9, 2026, it sits 0.625 points below Welcome Home and 0.25 points below the Homebuyer Assistance first loan, saving about $117 a month versus Welcome Home on a $279,850 loan. It works with Conventional, FHA, USDA and VA financing, accepts a 640 credit score with up to 50% debt-to-income at 660, and covers one- to four-unit homes. NIFA also reimburses federal recapture tax, which removes the main resale risk of bond-financed loans.
The biggest limitation is that First Home gives no cash. Buyers still bring the full down payment and closing costs, about $16,150 or more on a $290,000 Omaha FHA purchase. Income limits are tight, starting at $105,700 for one or two people in most counties, and the $398,000 one-unit cap sits below Papillion's estimated $415,000 median price. The three-year first-time rule, required education, and NIFA's household income count add paperwork. Buyers who need help should compare NIFA Homebuyer Assistance, and higher earners should compare Welcome Home and its $182,800 limit.
Frequently Asked Questions
Does the NIFA First Home Program give down payment assistance?+−
What are the NIFA First Home income limits for 2026?+−
Do I have to be a first-time homebuyer to get a NIFA loan?+−
Will I have to pay the recapture tax on a NIFA loan?+−
What credit score do I need for the NIFA First Home Program?+−
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Program details last verified: October 13, 2026