Bond Program Details

Launchpad for First-Time Homebuyers Program Only - Effective May 19, 2025
Non-Targeted Area Purchase Price and Income Limits

The Department of Housing and Urban Development (HUD) Qualified Census Tracts, also known as targeted areas, allow for a higher purchase price and increased income limits, and waive the first-time homebuyer requirement. 

Targeted Area Purchase Price and Income Limits
Launchpad for First-Time Homebuyers Program Only - Effective May 19, 2025

Qualified Census Tracts (also known as targeted areas)

Find an Address in a Targeted Area

1. Access the FFIEC Geocoding System to find information about a specific address by clicking this link: https://geomap.ffiec.gov/FFIECGeocMap/GeocodeMap1.aspx
2. Enter complete address. Select the address from the list that appears or click on the image of the magnifying glass to search the address as entered. 
3. Compare the "Tract Code" with the Qualified Census Tracts chart above.

*Indicates a census tract with eligible and ineligible property addresses based on Nevada Rural Housing's rural jurisdiction. Please verify the property address in this census tract is eligible at HALMap.org. 

Notice of Federal Recapture Tax

Buyers obtaining a mortgage through the Launchpad for First-Time Homebuyers program or a tax credit through a Mortgage Credit Certificate (MCC) may be required to pay a Federal Recapture Tax if they meet every one of the following 3 provisions at the time of sale:

• The home is sold within the first 9 years of the purchase date, and
• A net profit is received from the sale of the home, and
• Household income at the time of sale exceeds the maximum income limit

Borrowers are not subject to Federal Recapture Tax in the following circumstances:

• The home is transferred to a spouse, or former spouse, in connection with a divorce where no gain is included
• The home is destroyed by a casualty, and is repaired or replaced on its original site within 2 years after the end of the tax year when the casualty occurred
• The home is sold, or otherwise disposed of, as a result of the borrower’s death
• The home is refinanced – please note that refinancing does not cancel the recapture tax provision, which may still apply if the home is sold within 9 years

Borrowers are more likely to pay Federal Recapture Tax in the following circumstances:

• Employed in a field with high growth income potential
• Income is close to the maximum income limit at the time the home is purchased
• Purchasing a home in a high housing inflation environment

Marital status may change from single at time of purchase to married at time home is sold, or otherwise disposed of

If Federal Recapture Tax is owed, it is not collected at the time of the sale. The Borrower(s) must complete and file IRS Form 8828 with their Federal Tax Return for the year the home is sold, or otherwise disposed of (regardless of whether the Borrower owes Federal Recapture Tax). IRS Form 8828 provides instructions to calculate and determine if Federal Recapture Tax is owed. Nevada Rural Housing Authority recommends consulting with a professional tax advisor to answer Federal Tax questions.

What is the Federal Recapture Tax?

It’s a Federal Tax a Borrower may be required to pay from the net profit received from the sale or disposition of their home. If required, Federal Recapture Tax is due at the time a Federal Tax Return is filed for the year in which the home is sold, or otherwise disposed of. The maximum Federal Recapture Tax is 6.25% of the original principal balance of the loan or 50% of the net profit earned on the sale of the home, whichever is less.

Notice: Nevada Rural Housing Authority’s Recapture Rebate Program ended on August 1, 2017. MCCs issued on or after August 1, 2017 are not eligible for a recapture tax rebate. For eligible MCCs, please email HAL@NVRural.org to request a rebate application.

Additional information is available in the Recapture Brochure, as well as in the instructions for completing IRS From 8828.