If you are a Hoosier looking to purchase a home in Indiana and you have little or no money to put down and you are low to moderate income the Indiana Housing and Community Development Authority may have a loan program or a down payment assistance program for you. The Indiana Housing and Community Development Authority has quite a few loan programs for first time home buyers and other home buyers who have low income and little assets of their own to buy a home.
Do I Have To Be A First Time Home Buyer To Get Down Payment Assistance From IHCDA?
For the most part IHCDA loan and down payment assistance programs are intended for First Time Home Buyers. However, if you are not a first time home buyer and are buying a home in a federally targeted area within Indiana then you may be eligible to get a IHCDA mortgage and down payment assistance program. If you plan on using these programs to buy a home, you will still be subject to income and home price limits just as if you were a first time home buyer. Once plus about buying a home in a targeted area is that the income and home price limits are expanded in these areas.
What Kind Of First Time Home Buyer Mortgage Program Can I Get In Indiana?
A common First Time Home Buyer program in Indiana comes with low interest long term fixed interest rates and low fees. This program is called the First Home program. To find out if you qualify for this program you will have to apply for it through a participating lender. Basically, the First Home program sets your interest rate below market, but the actual loan program guidelines are the same as qualifying for any FHA, VA, Fannie Mae, or USDA Rural Housing mortgage.
Additionally, to qualify for this program your income has to be under an income limit and the home you decide to purchase must be under a certain purchase price limit. These limits are determined by the location of the home that you want to purchase as well as your family size, and whether you are getting down payment assistance or not.
Get Down Payment Assistance With The First Home – PLUS Program
If you need down payment assistance while using the First Home program then you will probably want to apply for the First Home/PLUS program. This program offers the same first mortgage below market interest rate loan as the First Home program as well as a maximum of 5% down payment assistance up to a maximum of $3,500.
This down payment assistance money is given interest free and does not need to be paid back as long as the homebuyer owns their home and does not refinance their home within a specified period of time. Income and home price limits apply for this program depending on the location of the home and the family size of the homebuyer using the program.
What Other Mortgage Loan Programs Are Available In Indiana?
- First Home 100 - The Indiana Housing and Community Development Authority has teamed up with Fannie Mae to provide those Hoosiers who have low incomes an opportunity to affordably purchase a home. For this program, home buyers do not have to have any of their own money and can borrow up to 100% of the sales price to purchase a home.
Additionally, this home loan program has flexible guidelines and allows a home seller to contribute up to 3% of the sales price to the buyer to be applied to the home buyer’s closing costs. It is also possible for a home buyer to qualify for IHCDA’s down payment assistance program.
- Community Mortgage 100% - The 100% My Community Mortgage is a Fannie Mae home loan that requires homebuyers to have at least $500 of their own cash and it allows the homebuyer to finance up to 100% of the sales price of the home. Income and home purchase price limits apply for this program.
- Community Solutions 100 – If you are a teacher, a firefighter, a public safety official such as a police officer, employed in law enforcement, or you are a state or municipal worker you may be eligible to purchase a home with just $500 of your own money with a mortgage up to 100% of the home’s purchase price. Income and home purchase price limits apply for this program.
- Community Home Choice – If you are a Indiana resident looking to buy a home in Indiana and have a disability or have a family member living with you with a disability then this program may be the one that best fits your needs. You will have to apply through a local lender and ask them at the time of your application about this program. This program has expanded qualifying requirements and allows more flexibility with nontraditional credit histories. Income and home purchase price limits apply for this program.
- Homeownership For Veterans – As with many states in the U.S., Indiana honors its Veterans, Spouses of deceased Veterans, and Active Duty Personnel and has a special mortgage loan program for you. Check with your local lender for this program.
- Mortgage Credit Tax Certificates – Indiana has made available a mortgage tax credit certificate for first time home buyers in Indiana. This certificate helps a first time home buyer get up to $2,000 in tax credit per year on their Federal Tax Return. Income and home purchase price limits apply for this program.
To get additional information about down payment assistance programs, or to find out more about mortgage programs please complete the information below:
(New site)