Greater Nevada Mortgage grants middle-income homebuyers $50,000 for down payment and closing costs
Submitted by Carson Now Reader on Wed, 09/20/2023 - 3:45pm
For 20 Nevada homebuyers, homeownership became a reality with the Middle-Income Down Payment Assistance program offered since May through Greater Nevada Mortgage, a subsidiary of Greater Nevada Credit Union.
The pilot program, made possible by the Federal Home Loan Bank, offered a small number of financial institutions, including GNCU, up to $1 million to disperse among qualifying middle-income homebuyers. Those eligible could receive $50,000 towards closing costs and down payment assistance on their first home.
The aim of the program was to help make homeownership, amidst rising interest rates and the increased cost of housing, a reality for qualifying middle-income families and individuals—those earning between 80.1% to 140% of the area median income in Nevada for the region where the property is located.
“We knew this program would make an immediate and significant impact for many middle-income families and first-time homebuyers seeking housing,” James Anderson, President of mortgage lending for GNM, said. “Home ownership can help build generational wealth and for many people in what’s called the ‘missing middle,’ it can be challenging to get a foot in the door. This program allows hard working members of our community to secure a brighter, more financially secure future.”
With the Middle-Income Down Payment Assistance program, eligible homebuyers who contributed a minimum of $10,000 qualified for a grant of $50,000 to assist with their downpayment and closing costs. To be eligible for these funds, applicants had to be a first-time homebuyer, fulfill income eligibility requirements, complete a homebuyer counseling program, and purchase an eligible property in Nevada or California as their primary residence.
“For people who earn a middle income, you just barely make too much for a lot of down payment assistance programs,” McKenna Britton said, a participant in the Middle-Income DPA program. “This program is specifically tailored to that situation, making it possible to buy a house.”
“This is a considerable amount of money for down payment assistance, and this is a grant that doesn’t need to be paid back and isn’t a lien on the property” Anderson said. “It’s as close to ‘free’ money as you can get for a purchase transaction.”
With a lender limit of $1 million giving out $50,000 per loan, 20 grants were made possible through GNM as part of this program. While Anderson anticipates this down payment assistance program being available again next year, he encourages anyone who is interested in homeownership to reach out, even if they fear it may be out of grasp.
“Down payment assistance programs are one of the top ways we help families and homebuyers enter into homeownership,” he said. “Regardless of what you’re hearing or what you think may be possible, I always encourage people who have dreamt of owning a home to reach out to us so that we can help them evaluate what’s possible.”
