Programs & Eligibility

Individuals who haven’t owned and occupied a primary residence within the past three years, are considered a first-time homebuyer. Even if a home was owned years ago, but has been occupied by renters for three or more years, to us that's still considered a first-time homebuyer.

Potential buyers do not need to be a first-time homebuyer if:

• They are a qualified veteran who has been discharged from the service under conditions other than dishonorable OR
• They're purchasing a home located in a target area. Use our Geocoding/Mapping System to help identify whether or not a specific home is in a target area.

Note: There are some situations when NIFA may grant an exception to the first-time homebuyer requirement. If one of these situations apply, a Participating Lender will submit documentation to our office for review during the loan application process:

1. If home is lost by divorce and individual received no sale proceeds
2. If home is lost by a natural disaster
3. If home is lost by a forced job relocation

NIFA is committed to helping homebuyers get into their new home with a great, low interest loan, and minimal hassle.

All NIFA loan programs have maximum household income limits based on the home’s location and household size. NIFA’s program eligibility includes the income of any adult member who will reside in the home and will be a borrower, co-borrower or non-borrowing spouse. Note: Income from other adult occupants is only included when the occupant will have an ownership interest in the home.

This includes, but is not limited to, base pay, overtime, commissions, bonuses, tips, self-employed income, social security, disability, unemployment, child support, alimony, part-time income and interest income from assets over $5,000.

NIFA will use your current monthly household gross income and will project it over 12 months. This calculation method is only used by NIFA to determine program eligibility. In most cases, your Participating Lender will use a more conservative underwriting approach for income to qualify you for the loan.

In addition to NIFA's program eligibility requirements, credit underwriting guidelines also apply. These guidelines include minimum credit scores and maximum debt-to-income (DTI) ratios. 

Participating Lenders use a credit score to determine the creditworthiness of a borrower. The DTI ratio calculates by taking your total monthly expenses and dividing them by your total monthly gross income.

Conventional and Government Loans: The minimum credit score requirement is 640 with a maximum total DTI ratio of 45%. If your credit score is 660 and above, NIFA will allow a maximum total DTI of 50%. If your Participating Lender needs to use manual underwriting guidelines to approve the loan, the minimum credit score and maximum DTI varies depending on the type of loan. If you do not have a credit score, you may still qualify for a NIFA loan.

Participating Lenders are required to determine if a borrower meets all NIFA program eligibility and credit underwriting guidelines.

NIFA requires First-Time Homebuyers to complete an approved homebuyer education class before closing because we understand how overwhelming it can be to purchase your first home. From one of these classes, a first time homebuyer will gain valuable knowledge on the loan process, terminology, budgeting, tips for selecting a real estate agent, home inspections, home maintenance and much more.

Browse NIFA-approved classes