Q. How does your Homebuyer Program Work?
A. We are a housing agency that works with prospective homebuyers in many ways. We have several different programs available depending on each consumer’s situation. We help consumers with down payment, closing cost, and property rehabilitation through the use of low interest loans and/or second mortgages.
Q. Does NeighborWorks Lincoln work only with low-income households?
A. No. NeighborWorks Lincoln works with people of all income levels. However, space for classes is limited so we occasionally ask those households whose income is above the guidelines for their household size to wait a month or two for classes to allow those qualifying for an assistance loan to receive their training first.
Q. Do I have to attend your Homebuyer Education classes to use your programs?
A. Yes. Every adult member of your household, related or not, must attend all 12 hours of classes to use our program. Our Homebuyer Education program is designed to teach you what you need to know to purchase a home and to help you become a more informed consumer before you buy.
Q. Do I have to buy a house in a certain area?
A. NeighborWorks Lincoln’s Homebuyer Assistance Program is limited to homes located within the Lincoln city limits. However, the education classes are REACH certified and provide credit for a variety of other loan programs for purchases outside the Lincoln city limits.
Q. How much down payment will I need?
A. Our programs require a consumer to invest a minimum of $1,000 of their own money into their purchase transaction. In some cases, an investment equal to 3% of the purchase price is necessary to complete the transaction.
Q. How much house will I be able to afford?
A. The cost of the house you can buy will depend on your income as well as the amount of monthly debt you have. Your income is the gross total from all sources. Examples include: wages, alimony, child support, disability, IRA, etc.
Q. If I already signed a purchase agreement, can I use any of your programs?
A. No. You must take our Homebuyer Education classes prior to signing a purchase agreement or other contract for a particular home in order to qualify for NeighborWorks Lincoln’s programs.
Q. What is the least amount I would have to pay for a house payment through your program?
A. The house payment that consumers using our programs make includes principal, interest, taxes, and insurance. House payments are generally at least $500 per month, which requires a minimum of $1,700 per month gross income.
Q. Do you have any programs that help low income people make their house payments?
A. No. Our programs help consumers get into affordable homes. The consumer must have financial capacity to make the monthly payments.
Q. Do your programs work with land contracts or owner financing transactions?
Q. What is Homebuyer Education?
A. NeighborWorks Lincoln Homebuyer Education classes encourage group interaction and hands-on experiences. Housing Specialists will discuss the homebuying process, answer your questions, and provide helpful learning materials as you prepare to become a homeowner.
Q. What is covered in the Homebuyer Education classes?
A. Class topics includes:
- Budgeting and handling credit
- Evaluating homes and what you can afford
- Working with realtors and neighborhood contacts
- Understanding financial paperwork, closing costs, and the amount of money needed