State program helps 5,500 families buy a home, agency says

CARSON CITY — More than 5,500 Nevada families have been able to purchase a home through a state program that provides grants for down payments, the state Housing Division said Thursday.

The Home is Possible program was launched in 2014 as a way to help people get a foot in the door of home ownership and help the state’s struggling housing market that was crushed during the Great Recession.

The program offers free money to low- and middle-income homebuyers in Clark and Washoe counties who meet other mortgage qualifications but lack the savings to come up with a down payment and closing costs.

So far it has funded $44 million toward down payments on mortgages totaling more than $1 billion, the housing agency said.

The program is a partnership with the investment firm of Raymond James and is designed to have continuous funding.

Funds are placed in escrow for the down payment assistance. As the mortgage loans are closed, the down payment assistance grants are returned to the funding pot.

“The Home is Possible program is a great example of a successful public-private partnership,” said CJ Manthe, housing division administrator. “Our investment banking partner Raymond James allows us to offer this program without using taxpayer dollars to help Nevadans realize homeownership.”

More than 70 mortgage lenders participate in the program and help homeowners through the process.

Since its creation in Nevada, grants have been awarded to 4,577 homeowners in Clark County and 1.016 in Northern Nevada’s Washoe County. The total includes grants to 338 veterans and active military personnel.

The program provides a nonrefundable down payment grant of up to 5 percent for families purchasing a home for less than $400,000. Household income cannot exceed $95,500. Qualifiers must have a minimum credit score of 640.

Buyers must meet standard underwriting requirements, complete a homebuyer education course and live in the home as a primary residence.

Average household income of those participating in the program is $57,000, while the average home price is $200,000, the division said.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-461-3821. Follow her on Twitter: @SandraChereb