Washoe County Gives First Time Buyers Down Payment Assistance

The Washoe County HOME Consortium (WCHC) has announced two new down payment assistance programs for first-time home buyers.  One of the biggest challenges to would-be homeowners is saving up the money needed for a down payment.  However, if you are saving money to purchase a home in the future, you may be able to take advantage of one of these programs now.

Both the Neighborhood Stabilization Program (NSP) and the HOME Program will grant qualifying first-time homebuyers a loan up to $20,000 to be used to as a down payment.  There are many similarities in the programs and some major differences.

Neighborhood Stabilization Program and the Home Program Similarities:

• Borrower must have at least 3.5% of the required down payment in personal funds.
• The property must be the borrower's primary residence for the life of the loan.
• If the home is sold or is not used as the primary residence, the loan becomes due and payable in full immediately.
• The funds granted to the borrower may also be applied towards closing costs or to purchase points.
• Borrower and property must qualify.
• Borrowers must complete a homebuyer course.
• Program funds are limited and will be granted on a first-come, first-serve basis.

Neighborhood Stabilization Program and the Home Program Differences:

NSP:

• Forgivable loan - interest free
• Funds must be used to purchase a foreclosed home in one of three targeted areas
• Borrower's income must be within 50%-120% of the area's median income
• Purchase price must not exceed 99% of the appraised value

HOME:

• Deferred loan - interest free
• Funds may be used to purchase any home for sale in Washoe County
• Borrower's income must not exceed 80% of the area's median income
• Purchase price must not exceed 100% of the appraised value

Keep in mind that a first-time buyer is anyone who has not owned a home for three years or more.  For more detail regarding the Neighborhood Stabilization Program or the HOME Program by going to the City of Reno website.  There, you will find links for program details and contact information.