Programs assist with financing

With home prices at all-time lows, it's definitely a buyer's market. But today's cloudy economic climate has made coming up with a down payment and closing costs a daunting feat, especially for the first-time buyer.

But there are still programs available to help that buyer obtain the necessary financing. It's just a question of knowing where to look.

HOPE (Housing Opportunities, Programs and Education) may be one place to start. Dawn Lane started the program in 2002 with the idea of putting together a resource center for homebuyers where they could get everything they needed in one place. Lane works with preferred Realtors, lenders and title companies, and gets some of her funding from private investors, but she also has researched all federal and local funding sources, so she can quickly determine which programs fit which buyers.

"You can layer programs on top of each other," Lane said. "We can get people up to $75,000 per family, depending on their income."

Participants are required to attend an initial homebuying seminar, and then one-on-one appointments are set up. Buyers receive post-counseling for a year once the home is bought.

Lane said business is booming.

"It's been a lot better for us with the prices of houses going down," she said. "People should really take advantage of this time."

Lane's newest program is HomefromWork, in which the HOPE program's partnership with lenders and nonprofits helps companies that want to assist their employees in buying homes.

According to the Web site, Employer Assistance Housing can help employers reduce turnover, leading to lower training and hiring costs. In addition, EAH can increase loyalty and morale, support bottom-line business goals and strengthen links with the local community.

For more information on HOPE, call 501-1192 or visit homefromworknevada.com.

Another resource is HUGS (Help Us Give to Our Schools). HUGS began as a down-payment assistance program for Clark County School District employees, but was opened up to first-time homebuyers statewide Sept. 22.

HUGS provides between $2,000 and $12,000 toward a new homebuyers' down payment or closing costs.

To be eligible, a homeowner must use a HUGS foundation mortgage agent or Realtor. His or her combined income cannot exceed $82,500 for families or $41,000 for singles, and liquid assets cannot exceed $15,000. The buyer must invest a minimum of 1 percent of his or her own funds and occupy the home for at least three years.

Donations, sponsors, partnerships and membership fees fund the program. Realtors, for example, pay $495 a year to belong. Business partners currently include Amstar, Countrywide Bank and American West Homes.

HUGS Executive Director Pamela Thilavanh said HUGS is currently doing 80 to 90 deals monthly.

"I never thought it would be as big as it is."

For more information visit hugsfoundation.com or call 677-2100.

The Nevada Housing Division has a first-time homebuyer program that provides up to $10,000 in assistance on fixed-rate, 30-year loans. Buyers may not have owned their own residence within the past three years. Total gross household income must fall within the NHD's Maximum Income limits, which vary from $65,500 to $97,300, depending upon the particular county where the house is located and the number of persons in the household. Maximum purchase price limits range from $237,000 to $429,619, also depending on the location. A buyer's assets may not exceed 50 percent of the purchase price of the residence, with exceptions made for the disabled and elderly. The homebuyer must complete a six- to eight-hour Homebuyer Counseling Course.

Margarita Cassara, a loan officer for the state, said there's a lot of skepticism among first-time buyers. They fear that home prices will keep going down and they won't get a return worthy of their investment.

"We tell them as long as they're looking at purchasing a home as a long-term commitment they shouldn't have a problem," Cassara said. For more information go to nvhousing.state.nv.us, or call 486-7220, ext. 222.

The city of Las Vegas has a similar program that allows applicants to borrow up to $10,000 for help with down payment and closing costs. The loan is interest-free, with no monthly payments. It is deferred over a five-year period, after which time it may be forgiven. Applicants must be first-time homebuyers, be able to secure a first mortgage loan, make a minimum investment of $500 (in some cases up to 3 percent of the loan) and complete an approved homebuyer training course. For more information call 229-2555 or log onto lasvegasnevada/gov/information/15952.htm.

The city of North Las Vegas operates its first-time homebuyer assistance program through two nonprofits: Neighborhood Housing Services of Southern Nevada and Consumer Credit Counseling Services.

The city's assistance is in the form of a zero interest, deferred payment loan of between $1,000 and $37,500 secured by a deed of trust. Eligibility requirements are similar to other city-run programs. Homebuyers are required to have a total gross household income at or below 80 percent of the area's median income. Total household assets cannot exceed $30,000. Buyers must occupy the property as a principal residence, not have owned a home in the last three years, qualify for a first mortgage loan and contribute a minimum of $1,000 from personal funds to be used as an administrative fee for the nonprofit organizations.

Beth Posey, community services analyst for the city of North Las Vegas, said her department used to do six or seven homebuyer-assistance programs per quarter, but demand has increased as housing prices have fallen.

"During this last quarter we did over 17," Posey said.

Applicants interested in purchasing a home in North Las Vegas can call Neighborhood Housing Services of Southern Nevada at 649-0998 or Consumer Credit Counseling Services at 364-0344.

Homebuyers looking in the Henderson area will also find a first-time homebuyer program there. The city will assist with a 0-percent, interest-deferred loan not to exceed 10 percent for down payment only, and will also loan up to an additional 3.5 percent in closing costs and include extra financing for home repairs.

Applicants must either work or reside in Henderson for at least one year prior to applying. They must not have owned a home within the past three years, and complete a city's First Time Homebuyer Education Program. They must have a minimum investment of $750 of their own funds toward the home and $750 in reserves. Annual income caps range from $35,750 to $67,450 and take into consideration the number of persons in the household.

Doug Kuntz, affordable housing counselor for the city of Henderson, said Henderson's program is one of the few that don't funnel their money through nonprofit organizations.

For more information on Henderson's first-time homebuyer-assistance program, go to cityofhenderson.com, click on departments, neighborhood services, housing resources, services to citizens, then first-time homebuyer, or call 267-2000 or 267-2010.