Are you thinking of buying your first home in Indiana? Would you like information on various programs available 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 programs and incentives – including 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.
Local Indiana First Time Home Buyer Programs and Incentives
The agency in Indiana that provides assistance to first time home buyers is The Indiana Housing and Community Development Authority (IHCDA). While they do not currently have any such home buyer 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. As an extra incentive, 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 home buyer loan/grant program for Indiana.
From their website:
“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 First Time Home Buyer Programs for Indiana Residents
In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer 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
HOMEBUYERS ASSISTANCE PROGRAM
The Homebuyer Assistance Program is designed to assist households with overcoming what is usually the biggest hurdle to such households purchasing a house: the initial cash layout (e.g. down payment, fees, closing costs, etc.). Under this program we will assist qualified households whose income does not exceed the 80% moderate-income limits for the area as established by HUD. We can provide funding for principal reduction to make homeownership a reality, however the applicant must be able to obtain private mortgage financing. The maximum assistance available is $5,000 per household for qualified buyers.
Home price cannot exceed 95% of current FHA LOAN LIMIT for Lake County.
H.U.D. ANNUAL FAMILY INCOMEPERSONS 30% VERY LOW INCOME 50% LOW INCOME 80% MODERATE INCOME
1 13,600 22,650 36,250
2 15,550 25,900 41,400
3 17,500 29,150 46,600
4 19,400 32,350 51,750
5 21,000 34,950 55,900
6 22,550 37,550 60,050
7 24,100 40,150 64,200
8+ 25,650 42,750 68,350
Marion County, Indianapolis Neighborhood Housing Partnership (INHP) Good Neighbor II Program (317) 610-4634
“You think you want to own a home someday, but you’ve got questions. Can I afford it? Will I qualify for a loan? Is now the right time? Or, maybe you just want to do it better this time around.
Partner with INHP – the homeownership resource. For nearly 25 years we’ve helped thousands of Indianapolis residents become homeowners. We’ll help you too. You’ll learn the ins-and-outs of the home buying process. Get help preparing your finances and guidance on choosing the right mortgage for your financial situation and homeownership goals. So if you’re thinking of buying your first home or even if you’re an experienced buyer, take advantage of INHP’s homebuyer resources that are designed to help you successfully prepare, purchase and maintain your home for years to come.”
Multi Counties Housing Opportunities Inc Down Payment Assistance Program (DPAP) (219) 462-3729
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.
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.
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.
IHCDA is pleased to present the newest option for affordable home buying in Indiana. Lifting some of the First Home requirements, Next Home offers prospective homeowners who do not qualify as 1st home buyers down payment assistance of up to four percent. The income limits to qualify for this program are higher than those for First Home, and there are no purchase price limits, allowing more Hoosiers to qualify for these great opportunities. Details of Next Home include:
· Down payment assistance to non first time home buyers
· DPA is 4%
· FHA loans
· Higher income limits than that of First Home Plus
· DPA is fully forgiven after 2 years
· DPA is zero interest no monthly payments
· Min credit score 650
· No purchase price limits
· Must be originated through a participating lender
Multi Counties Southeastern Indiana Community Preservation and Development Corporation Regional 1st Time Homebuyer Program Down payment Assistance (DA) (812) 689-5505
