Down Payment Assistance is BACK!!

Great News! The Indiana Housing and Community Development Authority (IHCDA) has rolled out a GREAT new program that offers down payment assistance to qualified homebuyers in the state of Indiana. Many, many Hoosier homebuyers will benefit significantly from this program.  To see if it might help you, check out the program overview below.

Next Home Program Overview

·        Owner-Occupied – you have to be buying a home you will be living in.  You do NOT need to be a first time home buyer to qualify.

·        Single Family Homes Only – this program can’t be used to buy a duplex, 4 unit home, etc.

·        FHA Financing Required – you have to use FHA financing with a 30 year fixed rate with this program.

·        IHCDA Selected Interest Rate – the interest rate will be set by IHCDA and may be slightly higher or lower than the general market rate at the time you buy. 

·        Minimum Credit Score – The homebuyer’s credit score must be 650 or higher to be eligible.

·        Minor Enrollment Fee – IHCDA charges a one-time 0.125% enrollment fee to participate in the program.  This works out to $125 per every $100,000 borrowed. 

·        Full Down Payment Provided – this program offers up to 4% of the price in down payment assistance.  Seeing FHA currently only requires a 3.5% down payment, this will cover the whole down payment needed (NICE!).

·        Technically, It’s A Second Mortgage – technically, this 4% is a second mortgage on the house, but if you live in the home 2 years, it is forgiven and released and you do not need to pay it back.  If you live there less than 2 years, though, you will have to repay the money.

·        Income Limits Apply – if you make too much money, you won’t qualify.  How much is ‘too much’ depends on the county you live in and the size of your household.  Current limits can be found here:  Next Home Income Limits.  Please know, this is a HOUSEHOLD income limit, so the income of anyone who lives in the household will count, even if they are not on the loan.

·        Maximum Loan Amount – if you are buying a home with a price above $271,050, it is ineligible for Next Home.

As you can see, the guidelines for this program are quite flexible and will work for many homebuyers who need or want a little help with the down payment for their home purchase.  To learn more about whether this option will work for you, give me a call or drop me an email (574-234-5201/ lori.hiscock@ruoff.com).