2024 FHA Loan Limits in Nebraska

Nebraska homebuyers with low credit scores or limited down payment savings may be able to purchase property with the help of an FHA loan. Backed by the Federal Housing Administration, these mortgages provide borrowers struggling to qualify for conventional home loans a way to finance a home purchase but cap how much you can borrow depending on the county you live in.  This means most borrowers in Nebraska purchasing a single-family home have an FHA loan limit of $498,257, unless they live in a pricier area, like Dawson or Gosper counties, where limits reach $603,750.

Nebraska FHA loan limits by county

How are FHA loan limits determined?

The Federal Housing Authority annually revises the loan limits for the mortgages it backs to reflect housing price changes in each county across the country. While these financing caps shift regularly, they are always a certain percentage of the conforming loan limits set by the Federal Housing Finance Agency for conventional loans, or mortgages that conform to Fannie Mae and Freddie Mac rules.

In 2024, the loan limit floor, or the largest FHA loan accessible in most parts of the country, is $498,257 – or 65% of the national conforming loan limit of $766,550. But those living in major cities or other pricey spots can borrow far more, up to the loan ceiling amount of $1,149,825–or 150% of the conforming loan limit. In Nebraska, however, the biggest FHA loan available is $603,750 in Dawson and Gosper Counties. The state’s other 91 counties can only borrow up to that loan limit floor or $498,257.

How to qualify for an FHA loan in Nebraska

Since the FHA will reimburse a lender if you default on your mortgage payments, these loans offer borrowers different qualification requirements than those needed for conventional loans.  Here are the FHA’s minimum requirements:

→ Credit score of at least 500. You’ll need a down payment of 10% or more if your credit score is below 580. Scores of 580 or above can qualify with just the minimum 3.5% required down payment.
→ Satisfy any applicable waiting periods. Borrowers with a past bankruptcy or foreclosure event can also get an FHA loan sooner than the typical four-to-seven-year waiting period with conventional loans.
→ 3.5% down payment. You can finance all but 3.5% of a home purchase with an FHA loan if your credit score is 580 or higher. But a score of 579 or less means you’ll need to put down 10% or more to secure an FHA loan.
→ Debt-to-income ratio of 43% or less. Lenders will check that you can afford your monthly mortgage repayments by dividing your total debt by your pretax income. The higher that ratio, the riskier a borrower you’re perceived to be. The FHA prefers applicants with ratios of 43% or less, but you may still qualify with a higher ratio if you have strong credit and large cash reserves.
→ FHA mortgage insurance coverage. To get an FHA loan, you’ll need two types of mortgage insurance. The upfront mortgage insurance premium costs 1.75% of the total loan and is usually tacked on to your outstanding mortgage balance. While the annual mortgage insurance premium runs between 0.15% and 0.75% of the total loan and tends to be added to your monthly mortgage payment.
→ Used for primary home purchase. FHA loans cannot be used to buy vacation homes or rental properties as they require the home purchased be your primary residence for at least one year.
→ Stable two-year job history. While FHA loans come with no income limits or requirements, you will need to show proof of your work history through two years worth of pay stubs and W-2s, as well as employer contact information. Be prepared to explain any large resume gaps.
→ Get an FHA appraisal. Any homes bought with an FHA loan must first undergo a $400-$700  FHA appraisal to verify the value and inspect to ensure the condition of the home meets FHA standards.

Buying a multifamily property with an FHA loan

Those looking to generate some rental income can use FHA loans to buy multifamily properties with between two and four separate housing units, as long as they live in one of the units. Like FHA loans for single-unit properties, these loans require a down payment of just 3.5%, but come with higher loan limits that increase with each additional unit. Here are the requirements you’ll need to meet to get a multifamily FHA loan:

→ Credit score of at least 500. If your score is this low, you’ll need to put down 10% or more.
→ 3.5% down payment. Those with credit scores of at least 580 can make the 3.5% minimum down payment.
→ Debt-to-income ratio of 43% or less. Your total debt should eat up 43% or less of your pretax income to get an FHA loan. Those with higher ratios may still qualify if they have a strong credit score and cash savings.
→ Live in one of the units. The property can have between two and four residential units, but you must live in one of the units for at least a year to qualify for the loan. The remaining units may be rented out.
→ FHA mortgage insurance coverage. You must pay an upfront mortgage insurance premium of 1.75% of the total loan amount and an annual mortgage insurance premium of between 0.15% and 0.75% of the loan amount.
→ Get an FHA appraisal. The property must pass a $400-$700  FHA appraisal in order to secure the loan.
→ Stable income history. There are no income limits or requirements with FHA loans, but you will need to show lenders proof of employment through paystubs, W-2s or 1099s. You can also factor in potential future rental income you’ll earn from the property as part of your application.

FHA lenders in Nebraska

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