Compare Current Mortgage Rates in Nebraska

Nebraska mortgage interest rates affect how much you’ll pay for a home, so it’s important to lock in the most competitive rate possible. The lower your interest rate, the lower your monthly payments will be. Here are some tips for getting the best mortgage rates in Nebraska, plus programs that help first-time homebuyers.

Mortgage rates in Nebraska fluctuate depending on a number of factors, from the broader national economy to your individual credit score. Here’s what mortgage lenders consider when setting rates:

• Economic conditions: Rates tend to be lower during recessions and higher during economic booms. 
• Federal Reserve decisions: The Federal Reserve influences markets when it calls for changes to the federal funds rate. When the federal funds rate rises, rates rise for adjustable-rate mortgages, too. Fixed-rate mortgage rates tend to follow the yield on 10-year U.S. Treasury bonds, as both are long-term debt instruments.
• Inflation: When inflation is on the rise, mortgage rates tend to follow. When inflation cools and the economy slows, mortgage rates tend to drop, too.
• Buyer demand: Another factor contributing to mortgage rates is how hot the homebuying market is. If there is a lot of demand, mortgage rates often rise. During periods of low demand, rates are often lower, too.
• Mortgage type: The type of mortgage affects the rate, with adjustable-rate mortgages often having lower interest rates at the beginning of the loan term. Fixed-rate mortgages keep the same interest rate for the length of the loan.
• Mortgage program: You may be able to get a lower interest rate by working with a first-time homebuyer program or government-backed loan program.
• Loan amount: Rates are often lower when the loan amount is lower and higher when the loan amount is high. 
• Borrower financials: Your credit history, down payment amount, and location can also affect mortgage rates. Boosting your credit score and increasing your down payment may help you score a lower rate.

Nebraska’s first-time homebuyer programs are run by the Nebraska Investment Finance Authority (NIFA) and offer competitive interest rates, down payment assistance, and financial assistance for veterans. There are also a few programs specific to certain cities or counties within Nebraska:

• First Home: This statewide NIFA program for first-time homebuyers offers conventional and government-backed loan options. To qualify, you must not have owned a home in the last three years, meet income requirements for your county, have a credit score above 640, and be purchasing a home within Nebraska. You’ll also need to complete a homebuyer education class.
• First Home Targeted: This loan program is designed for people looking to buy a home in certain areas in Adams, Douglas, Jefferson, Lancaster, Saline, or Scotts Bluff counties, and you can be eligible with a higher household income than the limit for other counties.
• Welcome Home: Both first-time and repeat homebuyers can qualify for the Welcome Home program, which offers affordable lending options. You’ll need an income below $160,000 to qualify, and the purchase price limit for this program is $470,000 for a one-unit property.
• First Home Homebuyer Assistance: This statewide NIFA program helps buyers afford a home, even if they don’t have money for a down payment or closing costs. The Homebuyer Assistance program includes a first and second mortgage to help cover closing costs and down payment as long as the buyer makes a minimum contribution of $1,000. 
• First Home Military Home: Active military members who are first-time homebuyers can use NIFA’s Military Home program. Qualified veterans can also use this program, and don’t need to be first-time buyers.
• NeighborWorks Lincoln: This is a program for first-time homebuyers in Lincoln, Nebraska. To qualify, you’ll need to be a first-time homebuyer with an income between 60% and 120% of the area median income and a credit score of 640 or higher. The home you buy must be within city limits and cost $238,165 or less.
• Omaha Bridges to Homeownership Program: Certain low-income buyers in Omaha, Nebraska, may be able to use the Bridges to Homeownership Program to apply a Housing Choice Voucher toward buying a home and receive help meeting homeownership expenses. You’ll need to have a full-time job, enough savings for a 3% down payment, and a credit score of 660 or higher.

If you want the lowest mortgage interest rate you can get in Nebraska, there are a few things you’ll want to concentrate on. Starting with the most important factors, here’s what you’ll want to keep in mind:

• Build your credit score: Higher credit scores are more likely to earn the best rates from mortgage lenders. Make sure you’re making all of your payments on time, and try to pay down any high credit card balances to lower your credit utilization ratio.
• Determine your budget: Higher loan amounts, especially when combined with a low down payment, can result in higher interest rates. Use a mortgage calculator to help you see what you can afford.
• Shop around: Make sure to get quotes from multiple lenders. Different lenders may charge different rates or offer different options. 
• Compare loans: Once you’ve found a few lenders that suit your needs, compare a few loans. Don’t forget to check the fees, loan type, and interest type (fixed or adjustable), in addition to the annual percentage rate (APR).
• Get pre-approved: Getting pre-approved is a critical step when buying a home. Pre-approvals show how much you can expect to borrow from a particular lender and what it’s likely to cost you. You’ll also want to show the pre-approval letter to sellers when you’re ready to make a serious offer.

“The best strategy is to maintain a strong credit score and shop around with multiple lenders,” said Wyatt Simon, an Omaha-based real estate expert specializing in multi-family properties. “This approach gives you the leverage to negotiate better rates.”

When buying a home in Nebraska, you have several types of mortgage options to choose from:

Conventional

• What it is: Non-government-backed mortgage.
• Credit score: Usually 620 or higher.
• Down payment: As low as 3%.
• Mortgage insurance: Private mortgage insurance (PMI) is required for down payments under 20%.

FHA

• What it is: Backed by the Federal Housing Administration.
• Credit score: Usually 580 or higher, but you could qualify with a score as low as 500 if you put 10% down.
• Down payment: Starting at 3.5%.
• Mortgage insurance: Mortgage insurance premiums are required.

VA

• What it is: Backed by the U.S. Department of Veterans Affairs and designed for military members.
• Credit score: No minimum score, although individual lenders each have their own requirements.
• Down payment: As low as 0% down.
• Mortgage insurance: No mortgage insurance required. There is a loan funding fee of up to 3.3%.

USDA

• What it is: Backed by the U.S. Department of Agriculture and designed for buyers in rural areas.
• Credit score: You’ll usually need a credit score of 640 or higher, although there is no published minimum for this type of loan.
• Down payment: As low as 0% down.
• Mortgage insurance: No mortgage insurance is required; there is an annual guarantee fee.

Jumbo

• What it is: For homes that exceed the conventional loan cap of $766,550 (the cap may be higher in some areas).
• Credit score: Typically, you’ll need a score of 680 or higher for a jumbo loan.
• Down payment: Lenders will usually require at least 10% down.
• Mortgage insurance: PMI is required for loans with less than 20% down.