Math Lesson on Home is Possible Bonus Money

Piggy Bank with paper cutout of family

Back-to-school season is the perfect time to admit that we HIPsters at Nevada Housing Division are geeky number crunchers at heart. After all, we’re the people behind the thousands of dollars in bonus money that Nevada homebuyers can get through our Home Is Possible (HIP) family of programs.

While you may not inherently love math like we do, we’re certain you’ll come around when you start calculating how much money is available to help you buy a house. (Just wait until you start playing with the Mortgage Credit Certificate calculator!)

Drum roll please! Let’s do math.

Real Numbers. Really.

Did you know that the average amount of Home Is Possible bonus money received per household is $8,120? That healthy figure is based on the average loan amount of $203,000. With a one-time fee of just $675, that nets the average homebuyer $7,445 in free Washingtons.

But what if you’re above average? Let’s look at some even bigger numbers—‘cause it’s fun.

Example #1 - $300,000 loan value with HIP

HIP bonus money (5% of the loan value):                      $15,000

HIP one-time fee:                                                            $ -   675

Amount of non-repayable money received:                    $14,325

Yes, really. But wait, there’s more. 

Let’s say you’re a first-time homebuyer or qualified veteran. Then you could qualify for Home Is Possible AND the Mortgage Credit Certificate (MCC), together known as Home Is Possible Plus. This program can get you thousands in bonus money PLUS save you thousands in federal taxes over the course of a 30-year loan. (Hence, the Plus.) Check this out:

Example #2 - $250,000 loan value with HIP Plus

HIP bonus money ( 5% of the loan value):                     $12,500

HIP one-time fee:                                                            $ -  675

Amount of non-repayable money received:                   $11,825

PLUS:

MCC tax credit (over 30 years, 3.75% interest rate):    $33,360        

Program & lender fees:                                                  $  -  795

Total tax savings:                                                            $32,565

Add those two bolded numbers together and what do you get? A whole lotta homeowner bliss. Or in mathematical terms, a net gain of $44,390. For qualified veterans, the MCC program fee is waived, so go ahead and add $495 to the already huge net gain.

It’s Your Turn

Want to figure out your personal bonus money and tax savings? Let’s give it a shot. First, figure out the loan amount you plan to receive (within the purchase price limits of the HIP program). Then calculate 5% of that to see how much bonus money could be yours. (Don’t forget to subtract the $675 fee.) Not too shabby, eh?

If you’re a newbie to the homeownership world, it’s time to break out the MCC calculator. (Scroll down once you’re on the web page.) Here, you can figure out how much you’ll save in federal taxes by the first year, fifth year, tenth year and thirtieth year. It’s fun to play with. Go ahead, we know you wanna. The numbers are mindboggling, even for math geeks like us. (The fees are listed, too, so there’s no guesswork.)

To find out more, feel free to contact us. Better yet, work with a HIP-qualified lender. Our oh-so-convenient lender finder lists every lender in Nevada who is educated in–and able to deliver—HIP magic.

Okay, class dismissed. (Feel free to stay and play around with our MCC calculator some more. We think it’s fun, too.)

Our Programs

Nevada down payment assistance programs - Home is Possible

Home Is Possible™ offers thousands in bonus money to help with a down payment or closing costs.

Mortgage Credit Certificate helps first-time homebuyers and qualified veterans save around $2,000 in taxes annually.

Down payment assistance Nevada - combining HIP and Mortgage Credit Certificate

HIP Plus™ combines the benefits of Home Is Possible and Mortgage Credit Certificate.

HIP 1500™ offers an additional $1,500 for closing costs on top of the thousands in bonus money—for a limited time. Conventional loans only.

Nevada veterans mortgage assistance - Home is Possible for Heroes

Home Is Possible For Heroes™ helps veterans be at home with a below-market interest rate.

Nevada down payment assistance for teachers - Home is Possible

Home Is Possible For Teachers™ gives K-12 teachers in Nevada $7,500 in bonus money for a down payment or closing costs plus a below-market interest rate—for a limited time.

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