Are you thinking of buying your first home in Indiana? Would you like a free gift of grant money to help you purchase that first home? If you answered yes to these two questions, there is great news for you. The state of Indiana provides free grant money for its residents who are first time home buyers and need help with the down payment and closing costs. This money comes in the form of state grants. This is free money that shouldn’t be passed up! The grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the grant programs that the State of Indiana provides.
Indiana Grants
The agency in Indiana that provides assistance to the home buyers is The Indiana Housing and Community Development Authority (IHCDA). While they do not currently have any such grants available, they have a program called First Home/PLUS. This is a down payment assistance loan that has a zero interest rate and does not require payments. In effect, they are granting you the interest you would have paid. If you remain in your home for a certain length of time, the loan is “forgiven”, which means you never have to pay it back. In effect it becomes a grant, but only after you meet the requirements. To find out more, please visit the Indiana Housing and Community Development Authority website page specifically describing this information.
IHCDA is proud to have made the process of buying a home a reality for thousands of Hoosier families. They offer programs that assist Hoosiers with making down payments, getting low interest rate loans and even special programs for families that live in rural areas. In every county across Indiana there are lenders on hand to help with all the plans they offer. Explore our resources to learn about their programs, income and household limits as well as what lenders will be able to help you realize the dream of owning a home in Indiana. Below is a list of the programs they offer:
First Home
The First Home program offers qualified Hoosiers below market interest rate mortgages. This program can be used with other plans, such as the FHA/VA, Fannie Mae, or USDA Rural Development financing. You can find the current interest rate by calling (888) 227-4452 24 hours a day, 7 days a week.
First Home/PLUS
The First Home/PLUS program offers the First Home special mortgage rate, as well as 3.5% down payment assistance. Capped at $3,000 with zero interest , this is a perfect program for Hoosiers who do not refinance once they have moved into their new home, and who are also committed to staying in their new home. The Down Payment Assistance funds must be repaid in full once the borrower sells or refinances the home.
Mortgage Credit Certificates
The Mortgage Credit Certificate program offers first-time homebuying Hoosiers a Federal tax credit. The tax credit amount ranges between 20% and 35% of the interest paid on a mortgage each year, depending on the mortgage loan amount. The maximum credit per year is $2,000. This program is available on a limited basis when announced by IHCDA.
Federal Grants
Besides the state programs, there are federal funds and grants available in Indiana through the Homes and Communities program of the United States Department of Housing and Urban Development. On their website you’ll find complete grant information, application forms, description of available funds, as well as many other helpful tools.
Every potential buyer should investigate what they have to offer. You can visit the website by going here: US Dept. of Housing and Urban Development. Also, there is a website that has a complete list of all grant programs available through the United States Federal Government: Grants.gov. First time home buyers should plan to spend the required time investigating to determine how many individual grants they may qualify for. You can visit the website by going to Grants.gov and using the search box to locate the grants available to Indiana residents.
Other Grants for Indiana Residents
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this website.
Here is the contact information for the HUD office in Indiana:
Indianapolis Field Office
151 North Delaware Street
Suite 1200
Indianapolis, IN 46204-2526
Phone: (317) 226-6303
Fax: (317) 226-6317
There are also these local grant programs:
Decatur County First Time Homebuyer Down payment Assistance Program (812) 689-5505
Gary First Time Homebuyer Down payment Assistance Program (FTHP) (219) 881-5075
Lake County Homebuyers Assistance Program (HAP) (219) 755-3226
Marion County, Indianapolis Neighborhood Housing Partnership (INHP) Good Neighbor II Program (317) 610-4634
Multi Counties Housing Opportunities Inc Down Payment Assistance Program (DPAP) (219) 462-3729
Multi Counties Southeastern Indiana Community Preservation and Development Corporation Regional 1st Time Homebuyer Program Down payment Assistance (DA) (812) 689-5505
