LAS VEGAS (KTNV) — Many prospective homebuyers feel like they’ve been priced out of Southern Nevada’s real estate market, with prices continuing to escalate–the median home price in Las Vegas is currently almost half a million dollars.
Owning a home is still a part of the American Dream, though, and a new investment in Nevada is hoping to make it easier for people to purchase a house.
The Federal Home Loan Bank of San Francisco (FHLBank San Francisco) recently announced a $10 million investment into Nevada’s affordable housing system, which will provide up to $50,000 grants to help homebuyers–especially first-time homebuyers–with their down payments.
WATCH: Channel 13’s Guy Tannenbaum talks to mortgage brokers and realtors about grants for homebuyers
New grants seek to help Nevada homebuyers with down payments amid uncertain housing market
In a statement released Monday, Nevada Governor Joe Lombardo said: “Attainable homeownership for all Nevadans is one of my highest priorities and we can’t do this alone. The partnership and commitment of FHLBank San Francisco through this investment will give stability to many of Nevada’s essential workers.”
“When I got the call about [the grants], I was excited,” said Maya Diaz. “Based on how the market is, it just helps with people maybe being able to qualify for more.”
Jeff Newbury is Senior Vice President of Mortgage Lending at Greater Nevada Mortgage, one of the lenders distributing the grants. He calls any home buying assistance transformational, especially amid so much market uneasiness.
“For a middle-income family, that is a massive, massive boost, because housing can positively contribute into so many other areas,” Newbury said. “When people put roots down, they tend to build strong communities. I think that’s what you see with this program, first-time homebuyers and working families getting into this opportunity, and building roots in our communities.”
So, how do you qualify? You have to make between 80.01% and 140% of the median income in your area.
According to the U.S. Department of Housing and Urban Development (HUD), the median family income in Clark County is $87,800. That means if your family makes between just over $70,200 and $122,290 per year, you can qualify for these grants.
And, because they’re grants, that means buyers don’t have to pay them back, which real estate agents and mortgage brokers can be a huge benefit for people on the market.
However, local mortgage broker Reynaldo Herrera thinks the tight requirements for these new grants might get people’s hopes up who don’t qualify, especially in a climate where buyers are looking for any help they can get.
“This is just my opinion, to me, it’s as equivalent as going to a casino and trying to win a jackpot,” Herrera said. “A very limited number of people are going to access that capital, but for those limited people, it’s going to be huge.”
Diaz, the local Realtor, is more optimistic though, and says even if you’re not sure if you qualify for these grants, it doesn’t hurt to ask your real estate agent or your mortgage broker.
“I think it is going to help a lot of people,” Diaz said. “I’ve already reached out to three of my clients who’ve been waiting, as soon as I mentioned the grant, they were like, wait a minute I think my sister wants to buy and they were saying a bunch of people might want to buy.”
For more information on the new grants, click here to read the full press release from Nevada Governor Joe Lombardo’s office.
