Nebraska Investor + DSCR Loans, From the Lender

Program and regulatory figures verified October 7, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated October 7, 2026

We are the lender, so this site starts where a lender starts: with the exit, with the markets that actually carry debt, and with the tax line a rental sits on.

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★★ Nebraska does not care who lives there

Nebraska forecloses out of court. Neb. Rev. Stat. §76-1005: "A power of sale may be conferred upon the trustee which the trustee may exercise and under which the trust property may be sold."

The clock sits in §76-1006. The power of sale cannot be exercised until a notice of default is filed for record with the register of deeds in each county where the property sits, and then only "after the lapse of not less than one month."

One month. And the only longer case in the statute has nothing to do with tenants:

★ Read §§76-1005, 76-1006, 76-1010, 76-1012 and 76-1013 together and the absence is the finding: nothing in the Act conditions the clock, the redemption position or the deficiency on occupancy. An owner-occupied house and a tenanted duplex are on the same footing. The sections, quoted.

★★ Rights end when the gavel falls

§76-1010 does two things in one sentence. The trustee's deed conveys "without right of redemption," and the trustor's interest is "deemed to be terminated as of the time the trustee or the attorney for the trustee accepts the highest bid at the time of the sale."

Not at recording. Not after a redemption window. At the bid. Including what the deed's recitals prove.

★ The trade Nebraska makes with the lender

A fast, clean, redemption-free sale, and then a short window to chase the shortfall. §76-1013: "At any time within three months after any sale of property under a trust deed…an action may be commenced to recover the balance due."

And it is value-tested, not price-tested. "Before rendering judgment, the court shall find the fair market value at the date of sale," and judgment cannot exceed the shortfall measured against that value. A cheap sale does not manufacture a deficiency. How the two caps work.

★★ Both Nebraska metros are at the bottom

Gross yield, annual rent over typical value, for the month ending 31 August 2026:

Every yield above 5.95% is west of the metros along the I-80 corridor, or south at Beatrice. An out-of-state buyer almost always starts in Omaha; the yield is in Lexington, North Platte, Kearney and Grand Island. All 11 markets.

★ The whole state spans 2.04 percentage points, Lexington to Lincoln. Iowa, which we built the same night, spans 4.05. Nebraska is the flatter state: the decision here is corridor versus metro, not a hunt for an outlier.

★ These are market indicators, not a property-level underwrite. They exclude taxes, insurance, vacancy and management. We will run your actual property.

★ What a Nebraska investor does not get

Two things, both in the statute.

Any assessment limitation. §77-201: all real property not expressly exempt "shall be subject to taxation and shall be valued at its actual value." There is no residential rollback. The carve-out is agricultural land at 75% of actual value, and 50% for school district taxes on bonds approved by a vote on or after 1 January 2022.

The homestead exemption. §77-3502 defines a homestead as a residence and up to one acre "actually occupied as such by a natural person who is the owner of record thereof from January 1 through August 15 in each year." An LLC is not a natural person and is not in occupation. It fails twice. Why that matters more than it looks.

★ We publish no Nebraska effective property tax rate and no homestead exemption amount or limit. We did not read those sections at a primary source this pass, and we do not publish what we have not read. The tax line in full.

What a DSCR loan does

It qualifies the property. The rent the property produces supports the debt, so your personal tax returns are not the qualifying document, and title can sit in an entity, ordinary for investment property, and another reason the homestead exemption is beside the point.

We do not publish rates or payment figures. You get those on your own file. How it works.

Talk to the lender

Mike Certo, NMLS #260555, Cornerstone First Mortgage NMLS #173855. (480) 296-6513 · mcerto@cfmtg.com.

Frequently asked questions

Is Nebraska a judicial or non-judicial foreclosure state?

Non-judicial, by trustee's sale under the Nebraska Trust Deeds Act. Neb. Rev. Stat. section 76-1005 provides that a power of sale may be conferred upon the trustee which the trustee may exercise and under which the trust property may be sold. Verified 2026-10-07.

How long does a Nebraska trustee's sale take to start?

The power of sale cannot be exercised until a notice of default is filed for record with the register of deeds of each county where the trust property sits, and then only after the lapse of not less than one month. The period is two months where the trust property is used in farming operations carried on by the trustor and is not in an incorporated city or village. Neb. Rev. Stat. section 76-1006, verified 2026-10-07.

Does Nebraska treat a rental differently from an owner-occupied home in foreclosure?

No. Nothing in Neb. Rev. Stat. sections 76-1005, 76-1006, 76-1010, 76-1012 or 76-1013 conditions the cure period, the redemption position or the deficiency on whether the trustor occupies the property. The only longer clock in the Act is for farming property outside an incorporated city or village. This is the opposite of Iowa, where occupancy splits the post-judgment delay between two and six months.

Is there a right of redemption after a Nebraska trustee's sale?

No. Neb. Rev. Stat. section 76-1010 provides that the trustee's deed conveys to the purchaser without right of redemption, and that the trustor's right, title, interest and claim are deemed terminated as of the time the trustee or the attorney for the trustee accepts the highest bid at the time of the sale.

Which Nebraska market has the best rental yield?

Lexington, at a gross yield of 7.23% on a typical home value of $212,179 and typical asking rent of $1,278 for the month ending 31 August 2026, followed by North Platte at 6.76% and Kearney at 6.55%. Omaha ranked tenth of eleven at 5.50% and Lincoln eleventh at 5.19%. Gross yield is a market indicator, not a property-level underwrite.

Can a Nebraska rental property claim the homestead exemption?

No. Neb. Rev. Stat. section 77-3502 defines a homestead as a residence or mobile home and the land surrounding it, not exceeding one acre, actually occupied by a natural person who is the owner of record from January 1 through August 15 in each year. An investment property held in a limited liability company is neither owned by a natural person nor occupied by its owner.

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Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about investment-property financing, not a loan commitment and not legal or tax advice. Nebraska foreclosure, reinstatement and deficiency rules are set by the Nebraska Trust Deeds Act and change; figures here carry the date we verified them against the statutes themselves. Gross yield figures are a market indicator built from published typical values and typical asking rents, not a property-level underwrite: they exclude taxes, insurance, vacancy and management. Property valuation and the homestead exemption are administered by the county assessor and the Department of Revenue. All loans are subject to borrower, property and program qualification.