Jun

2025

Nebraska First-Time Home Buying Assistance Programs & Grants

By SoFi | mortgage | Comments Off

Nebraska First-Time Home-Buying Assistance Programs & Grants

Q: Should I take first-time homebuyer classes?

Yes! Good information is key to a successful home-buying experience for anyone, but especially for newcomers, who can easily be overwhelmed by the jargon, technicalities, and magnitude of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed they are required for some government-sponsored loan programs.

Q: Is there a first-time homebuyer tax credit in Nebraska?

Yes, there is a mortgage credit certificate program for first-time homeowners and those who buy in certain areas in Nebraska. With it, you can claim a portion of your mortgage interest as a tax credit, up to $2,000.

Considering buying a home in Nebraska? The median sale price of a home there is $301,500, up 4.5% year-over-year as of April 2025. About one in four homes sell above their list price, according to Redfin, a real estate brokerage that analyzes housing market data, but roughly the same percentage of homes had price drops — so there may be some bargains to be had.

The first-time homebuyer in Nebraska can also get financial assistance through state programs. Here’s what you need to know as you start your home shopping.

Recommended: First-Time Homebuyer Guide

Who Is Considered a First-Time Homebuyer in Nebraska?

The definition is broader than you might realize. If you haven’t owned a house in Nebraska in the last three years, you qualify as a first-time homebuyer when seeking a home mortgage loan. Others who would qualify if a lender uses guidelines from the U.S. Department of Housing and Urban Development (HUD) include:

• Someone who has not owned a home in the last three years

• A single parent who has only owned a home with a partner while married

• A displaced homemaker who has only owned a home with a spouse

3 Nebraska Programs for First-Time Homebuyers

There are several low-interest mortgage loans and closing cost assistance programs available to eligible first-time buyers.

NIFA: Homebuyer Assistance Program
NIFA: First Home Program
NIFA: Military Home Program

1. NIFA: Homebuyer Assistance Program

This program from the Nebraska Investment Finance Authority (NIFA) can help you buy a home with an investment of just $1,000. It includes a first and second mortgage. The first mortgage includes down payment and closing cost assistance and has higher interest. The second loan has a maximum of 5% of the purchase price, up to $10,000, and has a repayment period of 10 years with 1% interest.

To find out if you qualify, contact a participating lender .

2. NIFA: First Home Program

The First Home Program can help first-time buyers who don’t need down payment and closing cost assistance get a loan. You must meet a certain income and purchase price. Requirements. In addition to first-time buyers, the program is available to veterans and those purchasing a home located in a target area in one of these counties: Adams, Douglas, Jefferson, Lancaster, Saline, or Scotts Bluff. Not sure where you want to live in the Cornhusker State? Check out a guide to the best affordable places to live in Nebraska.

3. NIFA: Military Home Program

If you are an active member of the military and a first-time home buyer in Nebraska, you may qualify for this loan program . Veterans and spouses of veterans are also eligible.

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Recommended: Understanding Mortgage Basics

How to Apply to Nebraska Programs for First-Time Homebuyers

To apply for the mortgage and assistance programs we’ve covered, reach out to a participating lender to start the process.

Federal Programs for First-Time Homebuyers

Several federal government programs are designed for people who have low credit scores or limited cash for a down payment. Although most of these programs are available to repeat homeowners, like state programs, they can be especially helpful to people who are buying a first home or who haven’t owned a home in several years.

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), insures mortgages for borrowers with lower credit scores. Homebuyers choose from a list of approved lenders that participate in the FHA loan program. Loans have competitive interest rates and require a down payment of 3.5% of the purchase price for borrowers, who typically need FICO^® credit scores of 580 or higher. Those with scores as low as 500 must put at least 10% down.

In addition to examining your credit score, lenders will look at your debt-to-income ratio (DTI, your monthly debt payments compared with your monthly gross income). FHA loans allow a DTI ratio of up to 50% in some cases, vs. a typical 45% maximum for a conventional loan.

Gift money for the down payment is allowed from certain donors and you’ll need to obtain a gift letter for the mortgage.

FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, the upfront mortgage insurance premium (MIP) would be around $5,250 and monthly MIP, at a rate of 0.55%, would be around $137. You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

Very low- and low-income borrowers may make a 3% down payment on a Home Possible^® mortgage. These loans allow various sources for down payments, including co-borrowers, family gifts, employer assistance, secondary financing, and sweat equity.

The Home Possible mortgage is for buyers who have a credit score of at least 660.

Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

Fannie Mae HomeReady^® Mortgages allow down payments as low as 3% for low-income borrowers. Applicants generally need a credit score of at least 620; pricing may be better for credit scores of 680 and above. Like the Freddie Mac program, HomeReady loans allow flexibility for down payment financing, such as gifts and grants.

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

The conventional 97 LTV loan is for first-time homebuyers of any income level who have a credit score of at least 620 and meet debt-to-income criteria. The 97% loan-to-value mortgage requires 3% down. Borrowers can get down payment and closing cost assistance from third-party sources.

Unlike an FHA loan, the 97 LTV loan has no upfront mortgage insurance fee and does have cancellable mortgage insurance. The loan is for just one-unit single-family homes, co-ops, condos, and planned unit developments.

Department of Veterans Affairs (VA) Loans

Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. How does a VA loan work? It can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another plus when it comes to VA loans is that they do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

Eligible Native American veterans and their spouses may use these no-down-payment loans to buy, improve, or build a home on federal trust land. Unlike VA loans listed above, the Department of Veterans Affairs is the mortgage lender on NADLs. The VA requires no mortgage insurance, but it does charge a funding fee. For more information, email [email protected].

US Department of Agriculture (USDA) Loans

No down payment is required on these loans to moderate-income borrowers that are guaranteed by the USDA in specified rural areas. Borrowers pay an upfront guarantee fee and an annual fee that serves as mortgage insurance.

The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .

HUD Good Neighbor Next Door Program

This program helps police officers, firefighters, emergency medical technicians, and teachers qualify for mortgages in the areas they serve. Borrowers can receive 50% off a home in what HUD calls a “revitalization area.” They must live in the home for at least three years. For more information, visit the HUD program page.

First-Time Homebuyer Stats for 2025

Here’s some interesting information about first-time buyers in the U.S, as well data specific to Nebraska.

• Median home sale price in Nebraska: $301,500

• 3% down payment: $9,045

• 20% down payment: $60,300

• Percentage of buyers nationwide who are first-time buyers: 24%

• Median age of first-time homebuyers: 38

• Average credit score (vs. average U.S. score of 715): 731

Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. After reading up on how to choose a mortgage term, check out these tips on how to lower your mortgage payment:

• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. For this allowance, the IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

• Roth IRA withdrawals. Because Roth IRA contributions are made with after-tax money, the IRS allows tax- and penalty-free withdrawals of contributions for any reason as long as you’ve held the account for five years. You may also withdraw up to $10,000 in earnings from your Roth IRA without paying taxes or penalties if you are a qualifying first-time homebuyer and you have had the account for five years. With accounts held for less than five years, homebuyers will pay income tax on earnings withdrawn.

• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000 in any 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

• State and local down payment assistance programs. Usually offered at the regional or county level, these programs provide flexible second mortgages for first-time buyers looking into how to afford a down payment.

• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

Finally, this home affordability calculator can help determine how much home you can afford.

The Takeaway

Thanks to a steady housing market, this is a great time for the first-time buyer to purchase a home in Nebraska. Qualified buyers will also find programs offering low-interest mortgages and assistance with down payment and closing costs.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

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FAQ

Should I take first-time homebuyer classes?

Yes! Being informed is key to a successful home-buying experience, especially for newcomers, who can easily be overwhelmed by the jargon, technicalities, and magnitude of applying for a mortgage and purchasing a home. First-time homebuyer classes can help. Indeed they are required for some government-sponsored loan programs.

Do first-time homebuyers with bad credit qualify for homeownership assistance?

Often they do. Many government and nonprofit homeowner assistance programs are available to people with low credit scores. And often, interest rates and other loan pricing are competitive with those of loans available to borrowers with higher credit scores. That said, almost any lending program has credit qualifications. That’s why it’s important to take good care of your credit before you go house hunting.

Is there a first-time homebuyer tax credit in Nebraska?

There is not currently a mortgage credit certificate program offered through the Nebraska Investment Finance Authority (NIFA).

Is there a first-time veteran homebuyer assistance program in Nebraska?

Yes. NIFA offers a Military Home Program with low-interest loans to active military members and qualified veterans.

What credit score do I need for first-time homebuyer assistance in Nebraska?

It depends on the program. For example, the FHA program requires a minimum credit score of 500 to qualify.

What is the average age of first-time homebuyers in Nebraska?

Data specific to Nebraska is hard to come by, but the median age of first-time homebuyers in the U.S. was 38 as of late 2024, an all-time high.

Photo credit: iStock/halbergman

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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.

†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.

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‡Up to $9,500 cash back: HomeStory Rewards is offered by HomeStory Real Estate Services, a licensed real estate broker. HomeStory Real Estate Services is not affiliated with SoFi Bank, N.A. (SoFi). SoFi is not responsible for the program provided by HomeStory Real Estate Services. Obtaining a mortgage from SoFi is optional and not required to participate in the program offered by HomeStory Real Estate Services. The borrower may arrange for financing with any lender. Rebate amount based on home sale price, see table for details.

Qualifying for the reward requires using a real estate agent that participates in HomeStory’s broker to broker agreement to complete the real estate buy and/or sell transaction. You retain the right to negotiate buyer and or seller representation agreements. Upon successful close of the transaction, the Real Estate Agent pays a fee to HomeStory Real Estate Services. All Agents have been independently vetted by HomeStory to meet performance expectations required to participate in the program. If you are currently working with a REALTOR®, please disregard this notice. It is not our intention to solicit the offerings of other REALTORS®. A reward is not available where prohibited by state law, including Alaska, Iowa, Louisiana and Missouri. A reduced agent commission may be available for sellers in lieu of the reward in Mississippi, New Jersey, Oklahoma, and Oregon and should be discussed with the agent upon enrollment. No reward will be available for buyers in Mississippi, Oklahoma, and Oregon. A commission credit may be available for buyers in lieu of the reward in New Jersey and must be discussed with the agent upon enrollment and included in a Buyer Agency Agreement with Rebate Provision. Rewards in Kansas and Tennessee are required to be delivered by gift card.

HomeStory will issue the reward using the payment option you select and will be sent to the client enrolled in the program within 45 days of HomeStory Real Estate Services receipt of settlement statements and any other documentation reasonably required to calculate the applicable reward amount. Real estate agent fees and commissions still apply. Short sale transactions do not qualify for the reward. Depending on state regulations highlighted above, reward amount is based on sale price of the home purchased and/or sold and cannot exceed $9,500 per buy or sell transaction. Employer-sponsored relocations may preclude participation in the reward program offering. SoFi is not responsible for the reward.

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Jun

2025

Is Your Location the New Credit Risk? What to Consider

By Al Lewis | | Comments Off

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Climate change is remaking the home insurance landscape. Depending on where you live, the prevalence of disastrous hurricanes, wildfires or tornadoes can make policies a lot more expensive and much harder to get.

But what can you do if climate change ends up making it harder to even get a mortgage?

According to a new study by First Street, a risk modeling firm that analyzed the relationship between physical climate risk and foreclosures in the U.S., that’s a real risk.

In fact, just like your credit score, First Street expects that where you live will end up being an important factor in how lenders assess your creditworthiness. So it’s important to consider all aspects of your location when you’re making important life decisions.

“Borrowers in areas exposed to both the direct impacts of extreme weather and the indirect pressures of shrinking insurance availability, rising premiums, and declining property values are under mounting financial strain,” First Street wrote in a May report.

“This means that two borrowers with identical credit scores, histories, and incomes could face substantially different credit risk odds if one lives in a 100-year floodplain and the other does not.”

First Street’s analysis showed that floods are the primary driver of disaster-related foreclosures, particularly when they’ve struck outside the areas FEMA has designated as especially vulnerable to floods.

But even when there’s no extreme weather, higher insurance rates are becoming an increasing burden on homeowners, raising the risk of foreclosure, their research found. Between 2019 and 2022, for every 1% increase in annual homeowners-insurance premiums, there was a 1.05% increase in the foreclosure rate.

First Street projects that if there’s severe weather, climate-related mortgage losses could reach $1.2 billion this year and escalate to $5.4 billion a year by 2035. Properties in states including Florida, Louisiana and California are particularly vulnerable.

So what? Climate risks come with financial risks — including ones we may not have anticipated. For some, they’re even determining where to live.

Here are a few steps you can take to safeguard your finances and credit health in the face of these evolving environmental challenges:

Assess your climate risk with an online tool. Before you buy a house — or even rent — explore the environmental risks of the location. This tool, a partnership between First Street and Redfin, the real estate brokerage, scores environmental factors including wind, floods, and fire on a 1-10 scale.

Consider flood insurance. First Street’s modeling shows 17.7 million properties around the country face at least a 1-in-100 annual flood risk. Of those, about 9.8 million are likely unaware of their flood exposure because they fall outside of FEMA’s Special Flood Hazard Areas, according to the researchers.

Flood damage isn’t covered in standard home insurance policies, so if you want protection, you need to buy separate coverage from the National Flood Insurance Program or a private insurer that offers flood policies.

Plan for rising insurance costs (and consider them before you move.) The average annual premium on a standard home insurance policy shot up 62% between 2018 and 2024, according to a Freddie Mac analysis. While shopping around may help lower your costs, you’ll want to budget for more increases. Plus, premiums can be four or five times higher in some states, becoming a big factor in your monthly housing payment.

5 (Quick) Things to Do to Spend Less Money

By Lora Shinn | | Comments Off

This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

Between high prices and uncertainty about the future of the economy, many of us are thinking about ways to cut our costs.

And whether you free up cash to cover your basic bills, build up your savings, or take that vacation you really need, tightening your belt is empowering. But finding the time or energy to budget and hunt for deals can be difficult, right?

Thankfully, there are some quick and easy ways to cut back. Here are five things to do to keep your spending in check — even if you feel too busy to budget:

1. Make it a game. Do you love Candy Crush Saga or watching Jeopardy? With some reframing, spending less money can be a fun mental exercise that taps into your competitive side and requires no time at all. Make your plan in the shower or while you’re exercising.

Challenge yourself to forgo one higher-cost item you usually indulge in (a high-end organic item at the grocery store or an expensive hair conditioner.) Or, consider what you love about that discretionary spend and try a similar experience for less. If it’s going out with friends, could you trade in a cocktail for a well drink? (Maybe taste-test for a favorite?)

Other ideas:

• Try a pantry challenge: How long can you get by without buying any new non-perishable foods?

• Skip the small toy reward every time you take your (hopefully cooperative) toddler to Walmart.

• Take the subway or bus instead of using Lyft.

Maybe set a point value for each success and see if you can best your score each month. Or challenge your partner to a contest: Who can get more points by the end of the week?

2. Use those free loyalty programs. Signing up for a free loyalty program can be a no-brainer, depending on your willingness to give some basic personal information.

Most grocery stores simply require signing up once with your name and phone number and/or email address. After that, entering your phone number (or having the cashier scan a bar code in your e-wallet or on your keychain,) gets you all the sale prices and/or access to digital coupons or other rewards. Same goes for gas stations, pharmacy chains, theaters, pet stores, and more.

Many fast-food chains and retailers also offer online/in-app loyalty programs. And then there are miles and point programs for airlines, hotels, and clothing retailers, which you can usually belong to whether you have a branded credit card with them or not. The key is to choose free ones that are hassle-free. You might even get a decent-sized discount just for signing up.

3. Hit ‘pause.’ Many of us have memberships or subscriptions we don’t use enough to justify spending money on, at least not in today’s economy. Whether it’s a streaming service, an app, a gym or a newspaper, if you don’t want the hassle of cancelling the membership (and perhaps re-establishing it later,) pause or freeze it for a while to see how much you miss it. Just make sure to put the cancel-by date on your calendar before the pause is scheduled to lift.

4. Maximize your weekends (or work-free time.) If you’re like a lot of us, there’s very little time during the workweek — even to think. Use the weekend or your day off to plan ahead (hopefully after unwinding) and be thoughtful about your expenses.

• Plan and prep meals in advance to cut back on eating out on worknights. This can be making freezer-to-oven casseroles or just getting your produce washed and cut for weeknight meals. Whatever it takes to cut down on last-minute takeout.

• Look into what you can borrow from your local library besides books. You’d be surprised by all the stuff some public libraries loan out – kitchen tools, an Xbox, tennis racquets, snowshoes, and musical instruments to name a few. You’ll have to return the items, but given how many times you only end up using something once or twice, it’s worth considering whether you can avoid an expensive Amazon purchase. If you’re not a library member, signing up usually only takes a minute.

• Multi-task. It doesn’t take more time to do two things at once. So if you’ve got a weekend full of ferrying your kids around, group your errands with their rides to save on gas. If you’re waiting around for practice to end, make a list of non-perishable items you can buy in bulk.

5. Ask about discounts. Discounts apply to more than just seniors. When you’re scoping out entertainment or other activities — movies, museums, amusement parks or even national parks — check to see if you qualify for discounted admission rates because of your job, where you live, or anything else. Same goes for restaurants, retailers, airlines and hotel chains. You never know when being a veteran or servicemember, a student or teacher, or living in a specific city or county could save you money. But you have to ask.

OTM2025060201

Jun

2025

Week Ahead on Wall Street: Economic Menu

By Mario Ismailanji | | Comments Off

A fresh serving of economic data is on the menu for investors this week, offering insights into the health and direction of the economy that have the potential to influence sentiment and investment decisions. While several key releases are scheduled, the main course is sure to be the Friday jobs report.

Before we get to that pivotal report on Friday, however, other important indicators will provide an early taste of economic conditions. The Job Openings and Labor Turnover Survey (JOLTS) release will give us a nuanced look at labor demand, while the ISM Manufacturing and Services Purchasing Managers’ Indexes (PMIs) will offer a timely read on the health of these crucial sectors by tracking activity like new orders, price pressure, and employment. Complementing these figures, the Federal Reserve’s Beige Book will provide a qualitative snapshot of economic conditions across the nation, offering on-the-ground perspectives that can highlight emerging trends.

Finally, the week culminates with the highly anticipated jobs report on Friday. This comprehensive report includes key figures such as jobs added, the unemployment rate, and wage growth. The Fed pays close attention to this report when making decisions about monetary policy, and in uncertain times like these, its importance is greater than ever.

Economic and Earnings Calendar

Monday

• May ISM Manufacturing PMI: This index from the Institute for Supply Management tracks how purchasing managers across the manufacturing sector feel about the business environment.

• April Construction Spending: Construction data is a leading indicator of business activity.

• Fedspeak: Dallas Fed President Lorie Logan will participate in a moderated conversation followed by Q&A. Chicago Fed President Austan Goolsbee will participate in Q&A as part of the Quad Cities Business Journal Mid-Year Economic Review. Fed Chair Jerome Powell will give opening remarks at a conference celebrating the 75th Anniversary of the Board of Governors’ International Finance division.

• Earnings: Campbell Soup (CPB)

Tuesday

• April Factory and Durable Goods Orders: These metrics give insight into underlying trends for leading cyclical indicators.

• April Job Openings: A key measure of business demand for labor is the number of job openings, since reducing openings is easier and preferable to layoffs.

• May Wards Total Vehicle Sales: Cars are a big ticket item for consumers, so underlying vehicle sales trends can help shine a light on demand for durable goods.

• Fedspeak: Chicago Fed President Austan Goolsbee will participate in Q&A as part of the Corridor Business Journal Mid-Year Economic Review. Dallas Fed President Lorie Logan will give opening remarks at a Fed Listens event.

• Earnings: CrowdStrike (CRWD), Dollar General (DG), Hewlett Packard Enterprise (HPE)

Wednesday

• May ADP Employment Report: This survey, usually released a day or two before the official government jobs report, offers insight into private sector employment trends.

• May S&P Global US PMIs: These indexes track how purchasing managers across different industries feel about the business environment.

• May ISM Services PMI: This index from the Institute for Supply Management tracks how purchasing managers across different services industries feel about the business environment.

• Fed Beige Book: This report is released eight times per year and tracks the state of the economy based on qualitative information.

• Weekly Mortgage Applications: Mortgage activity gives insight on demand conditions in the housing market.

• Fedspeak: Atlanta Fed President Raphael Bostic and Fed Governor Lisa Cook will moderate a roundtable discussion at a Fed Listens event.

• Earnings: Dollar Tree (DLTR)

Thursday

• May Challenger Job Cuts: The firm Challenger, Gray & Christmas tracks the number of layoff announcements each month by sector.

• April Trade Balance: Trade, made up of exports and imports, is an important driver of economic activity.

• 1Q Productivity and Unit Labor Costs: These measures provide a breakdown of how productive workers were per hour of work and at what cost.

• Weekly Jobless Claims: This high frequency labor market data gives insight into filings for unemployment benefits. Jobless claims have continued to show a labor market that remains strong despite having cooled.

• Fedspeak: Fed Governor Adriana Kugler will speak at the Economic Club of New York. Philadelphia Fed President Patrick Harker will discuss the economic outlook at an event at the regional Fed bank.

• Earnings: Broadcom (AVGO), Brown-Forman (BFB), Lululemon Athletica (LULU)

Friday

• May Employment Situation Summary: This monthly blockbuster release from the Labor Department gives a comprehensive look at employment, wages, and hours worked in the previous month.

• April Consumer Credit: Borrowing activity gives insight into broader economic activity.

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May

2025

Hawaii First-Time Home Buying Assistance Programs

By Dana Jennings Jelter | mortgage | Comments Off

Hawaii First-Time Home-Buying Assistance Programs

It’s no secret that buying a home in a place most people consider to be paradise can be expensive. And it’s been that way for decades. According to Redfin, the median sale price of a home in Hawaii was $767,300 in June 2025, down a wee bit (1.8%) year-over-year. East Honolulu experienced a 5.2% increase in sale price, while all other areas saw prices decline.

Coming up with enough money for a down payment and closing costs can be difficult in the best of times. But in Hawaii, where the cost of living in general is higher than on the mainland, inflation can make home buying especially challenging. You can start by looking in one of the more affordable places in Hawaii.

First-time homebuyers may also be able to get financial help through the state, programs affiliated with the state, and in some cities and counties. There also are longstanding federal programs that could improve a buyer’s chances of success.

Recommended: First-Time Homebuyer Guide

Who Is Considered a First-Time Homebuyer in Hawaii?

First, a point of clarity as you start your search for a home loan. For most programs offered in Hawaii, applicants are considered first-time homebuyers if they haven’t owned a home for the past three years. The definition jibes with that of the U.S. Department of Housing and Urban Development (HUD).

3 Hawaii Programs for First-Time Homebuyers

In Hawaii, first-time buyers can find programs that offer down payment assistance, help locating an affordable home, and a mortgage credit certificate that can reduce a homeowner’s income taxes.

These programs were established to assist low- to moderate-income buyers. There also may be a limit on how much the purchased home can cost. Here’s a look at what’s available statewide.

HHOC Mortgage Down Payment Assistance Loan Program
HHFDC Affordable Resale Program
HHFDC Mortgage Credit Certificate Program

1. HHOC Mortgage Down Payment Assistance Loan Program

HHOC Mortgage, a nonprofit affiliate of the Hawaii HomeOwnership Center (HHOC), was created to help low- to moderate-income families obtain financing.

The lender’s DPAL Program offers qualifying first-time buyers a first mortgage with a 3% minimum down payment paired with a deferred second mortgage of up to $125,000 for down payment or closing cost assistance (including rate buydown), subject to the availability of funds.

Qualifications include:

• Home must be a single-family dwelling, condominium, or townhouse

• HHOC mortgage must originate the first mortgage, and will do so at the same time the 15-year down payment assistance loan (second mortgage) is originated

• Conventional, USDA, VA, and FHA loans available

• Can’t exceed 130% of area median income

• Must complete in-class or online homebuyer education with a HUD-approved counseling agency

• Must complete one counseling session with Hawaii HomeOwnership Center

To determine your eligibility, you can contact an HHOC Mortgage loan officer at [email protected], or by calling 808-523-9500 (Oahu). If you qualify, DPAL funds will be reserved once you’ve entered into a purchase contract.

2. HHFDC Affordable Resale Program

The Hawaii Housing Finance and Development Corporation is a government agency that provides affordable housing opportunities to residents of Hawaii. Its Affordable Resale Program offers previously owned condos repurchased by the agency for sale to qualified residents through a public drawing or lottery process.

Qualifications Include:

• Must be a first-time homebuyer who does not own any unit anywhere in the world

• Must be a U.S. citizen or permanent resident alien and a Hawaii resident

• Must reside in the unit through the time of ownership

• Must meet area median income requirements

• Must agree to the agency’s 10-year buyback and shared profit clauses

The HHFDC offers virtual information sessions for interested homebuyers. You can sign up at Hawaii Housing Finance & Development Corporation Affordable Resale Program or get more information on the program at the site. You can call the HHDC at 808-587-0620. To apply, fill out an intake form and email it to [email protected].

3. HHFDC Mortgage Credit Certificate Program

The mortgage credit certificate program offered by the HHFDC is a different kind of statewide assistance program designed to help low-income homebuyers. Borrowers can use the certificate to claim 20% of their annual mortgage interest, dollar for dollar, as a federal tax credit every year for the life of their loan.

The tax credit is available to homebuyers who meet specific household income and home purchase price limits.

Check out the program brochure to find out more about the benefits and requirements

You can apply for the credit certificate when you take out a home loan through a participating lender . There may be a fee to participate.

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Other Homebuyer Programs by Location

If you’ve already chosen the island or county you hope to make your home in Hawaii, you also may want to research the local buyer assistance programs available there.

If you can’t find assistance in your chosen location, check back occasionally for new offers. Some first-time homebuyer programs base their opportunities (and deadlines) on the funds they expect to become available. When their money runs out, they may press pause.

Programs that are currently available include:

Kaua’i County Housing Agency Home Buyer Loan Program

The Kaua’i County Housing Agency Home Buyer Loan Program provides low-cost primary and gap mortgages to income-qualified first-time homebuyers on the island of Kaua’i. For information on benefits and requirements, you can check out the program brochure or call 808-241-4444.

City and County of Honolulu Down Payment Loan Program

The City and County of Honolulu’s Department of Community Services administers a down payment assistance program using HOME Investment Partnership Act funds from HUD. The program provides income-qualifying families with a 0% interest second loan to help with their down payment.

This brochure offers information on the program’s benefits, requirements, and how to apply. Or call the Department of Community Services at 808-768-7762.

How to Apply to Hawaii Programs for First-Time Homebuyers

The way to get more information about each program, and apply, is described above. Often an approved lender is the go-to for assistance programs. Before you take steps to apply, make sure you have a copy of your most recent tax return at hand, because you’ll be asked about your household income.

Recommended: Understanding Mortgage Basics

Federal Programs for First-Time Homebuyers

The mortgages are generally for single-family homes, two- to four-unit properties that will be owner occupied, approved condos, townhomes, planned unit developments, and some manufactured homes.

Federal Housing Administration (FHA) Loans

Gift money for the down payment is allowed from certain donors. A gift letter for the mortgage will be needed to document the source of the funds.

FHA loans always require mortgage insurance: a 1.75% upfront fee and annual premiums for the life of the loan, unless you make a down payment of at least 10%, which allows the removal of mortgage insurance after 11 years. For a $300,000 mortgage balance, upfront MIP would be around $5,250, and monthly MIP, at a rate of 0.55%, would be around $137. You can learn more about these loans, including FHA loans for refinance and rehab of properties, by reading up on FHA requirements, loan limits, and rates.

Freddie Mac Home Possible Mortgages

The Home Possible mortgage is for buyers who have a credit score of at least 660.

Once you pay 20% of your loan, the Home Possible mortgage insurance will be canceled, which will lower your mortgage payments.

Fannie Mae HomeReady Mortgages

For income limits, a comparison to an FHA loan, and other information, go to this Fannie Mae site .

Fannie Mae Standard 97 LTV Loan

Department of Veterans Affairs (VA) Loans

Eligible active-duty members of the military, veterans, reservists, and surviving spouses may apply for loans backed by the Department of Veterans Affairs. VA loans, which can be used to buy, build, or improve homes, have lower interest rates than most other mortgages and don’t require a down payment. Most borrowers pay a one-time funding fee that can be rolled into the mortgage.

Another benefit of VA loans is that they do not require private mortgage insurance (PMI) for borrowers who make a down payment of less than 20%. And they have more flexible credit score requirements. In some cases, even those who have previously been in foreclosure or bankruptcy can qualify.

Borrowers applying for a VA loan will need a Certificate of Eligibility from the VA so make sure to review a guide to qualifying for a VA loan as a first step in the process.

Native American Veteran Direct Loans (NADLs)

US Department of Agriculture (USDA) Loans

The USDA also directly issues loans to low- and very low-income people. For loan basics and income and property eligibility, head to this USDA site .

HUD Good Neighbor Next Door Program

First-Time Homebuyer Stats for 2025

Here are some stats on homebuyers and the homebuying process.

• Percentage of buyers nationwide who are first-time buyers: 24%

• Median age of first-time homebuyers nationally: 38

• Median home price in Hawaii: $767,000

• Median rent in Hawaii: $1,93

• 62.4% of Hawaii housing units were owner-occupied

• Average credit score in Hawaii: 732

Additional Financing Tips for First-Time Homebuyers

In addition to federal and state government-sponsored lending programs, there are other financial strategies that may help you become a homeowner. Some examples:

• Traditional IRA withdrawals. The IRS allows qualifying first-time homebuyers a one-time, penalty-free withdrawal of up to $10,000 from their IRA if the money is used to buy, build, or rebuild a home. The IRS considers anyone who has not owned a primary residence in the past two years a first-time homebuyer. You will still owe income tax on the IRA withdrawal. If you’re married and your spouse has an IRA, they may also make a penalty-free withdrawal of $10,000 to purchase a home. The downside, of course, is that large withdrawals may jeopardize your retirement savings.

• 401(k) loans. If your employer allows borrowing from the 401(k) plan that it sponsors, you may consider taking a loan against the 401(k) account to help finance your home purchase. With most plans, you can borrow up to 50% of your 401(k) balance, up to $50,000, within a 12-month period, without incurring taxes or penalties. You pay interest on the loan, which is paid into your 401(k) account. You usually have to pay back the loan within five years, but if you’re using the money to buy a house, you may have up to 15 years to repay.

• The mortgage credit certificate program. First-time homeowners and those who buy in targeted areas can claim a portion of their mortgage interest as a tax credit, up to $2,000. Any additional interest paid can still be used as an itemized deduction. To qualify for the credit, you must be a first-time homebuyer, live in the home, and meet income and purchase price requirements, which vary by state. If you refinance, the credit disappears, and if you sell the house before nine years, you may have to pay some of the tax credit back. There are fees associated with applying for and receiving the mortgage credit certificate that vary by state. Often the savings from the lifetime of the credit can outweigh these fees.

• Your employer. Your employer may offer access to lower-cost lenders and real estate agents in your area, as well as home buying education courses.

• Your lender. Always ask your lender about any first-time homebuyer grant or down payment assistance programs available from government, nonprofit, and community organizations in your area.

The Takeaway

Being a first-time homebuyer in Hawaii can be especially challenging, but if you can qualify for one of the mortgage and assistance programs, you may be able to reduce costs. Other first-time buyers can look for advantages among the world of mortgages on their own.

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FAQ

Should I take first-time homebuyer classes?

Yes! Good information is key to a successful purchase process for anyone, but especially for newcomers, who can easily be overwhelmed by purchasing a home. First-time homebuyer classes can help. Indeed they are required for many government-sponsored loan programs.

Do first-time homebuyers with bad credit qualify for homeownership assistance?

Is there a first-time homebuyer tax credit in Hawaii?

There is not currently a mortgage credit certificate (MCC) program offered through the Hawaii Housing Finance and Development Corporation, although there has been one in the past. However, reissuance applications for existing MCC holders are still being processed through participating lenders. Homebuyers should check with their lender or tax advisor as tax policies change periodically.

Is there a first-time veteran homebuyer assistance program in Hawaii?

HHOC Mortgage offers a special VA loan, paired with a deferred second mortgage if needed, for veterans who meet income guidelines. VA-backed home loans are available nationwide to eligible service members, veterans, and surviving spouses.

What credit score do I need for first-time homebuyer assistance in Hawaii?

Credit score minimums may vary from one program to the next, and some programs use criteria other than credit scores to determine a borrower’s eligibility. You can check with the organization or lender offering first-time homebuyer assistance to get specific financial requirements.

What is the average age of first-time homebuyers?

The median age of first-time buyers was 38 as of late 2024, an all-time high.

Photo credit: iStock/JamesBrey

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