Total Mortgage in Indiana

IHCDA Step Down program

The Step Down program, administered through the Indiana Housing and Community Development Authority and partnering lenders, provides an intriguing option for qualifying homebuyers on the hunt. It delivers a 30-year fixed-rate FHA or conventional mortgage with an initial interest-only payment structure. To take advantage of this first-time home buyer loan in Indiana, an applicant must fulfill several criteria.

• First, one must be a first-time home buyer in Indiana who has not owned a residence within the last three years or be buying in a specially designated area.
• Second, the home under consideration must serve as the primary living space in Indiana.
• Income and purchase price constraints tied to location also apply.
• Additionally, the appraisal cannot exceed the purchase price limits.
• Would-be beneficiaries also pay a non-refundable $250 holding fee upon reservation.
• Finally, this program and other IHCDA initiatives are mutually exclusive. That means this program cannot be used in tandem with other IHCDA programs.

IHCDA First Step program

The IHCDA First Step program offers eligible homebuyers up to 6% of a property’s purchase price as a non-forgivable down payment assistance in Indiana. This program must be utilized alongside a 30-year fixed-rate mortgage, whether that be an FHA or conventional loan. Unlike typical loans, no monthly payments are due - the loan amount is only required to be repaid fully at the end of the thirty years or if the property ownership is transferred (property is sold).

Certain prerequisites must be satisfied to qualify for this down payment assistance program in Indiana:

• One must be a first-time home buyer in Indiana and have not owned a home in the past three years. Individuals buying a home in a designated area also qualify.
• The residence purchased must be located in Indiana and designated as the applicant's primary living space.
• Borrowers must meet the income and purchase price caps corresponding to their location.
• The appraised value cannot exceed the purchase price cap.
• This down payment assistance program in Indiana must be combined with a conventional or FHA thirty-year fixed-rate loan.
• Applicants pay a non-refundable $250 reservation fee as well.

IHCDA Next Home program

While First Step from IHCDA mostly aids first-time buyers, Next Home offers an alternative for all. Though down payment assistance amounts to only 3.5% of the price, eligibility criteria stay consistent. Borrowers must still meet income and cost restrictions parallel to the First Step program.

Mortgage Credit Certificate

The Indiana Mortgage Credit Certificate program can significantly diminish a homeowner's tax responsibilities. Through such first-time home buyer programs in Indianapolis, new property holders are qualified for a federal income tax credit worth of up to 25% of the amount they borrowed to purchase their residence. For a typical mortgage, this translates to a tax reduction of approximately $2,000 annually. Combining the MCC with the Next Home program administered by IHCDA introduces additional perks for qualifying individuals. Please note that this program has an upfront fee of $800.

Local Homebuyer Assistance Program

Depending on your preferred location in Indiana, you may have access to additional local down payment assistance programs.

In Bloomington, the HAND Down Payment and Closing Cost Assistance program provides up to $10,000 to first-time homebuyers with 80% of the area’s median income. The assistance is in the form of a second mortgage that is forgiven after five years.

In Evansville, the HOPE down payment assistance program matches up to $15,000 in down payment funds for first-time homebuyers. Buyers must contribute at least $1,000 of their own money, meet income and purchase price limits, and purchase within city limits.

In Indianapolis, the Indianapolis Neighborhood Housing Partnership (INHP) offers down payment assistance ranging from $7,500 to $24,999, depending on household size and income. Buyers must obtain an Indiana mortgage loan through INHP to qualify.

FHA Loans

FHA loans greet buyers with relaxed fiscal prerequisites compared to others. Credit as low as 580 can yield a hand, needing only 3.5 percent down.

VA Loans

For the fighting forces, their veterans, and surviving spouses, the VA's assurance translates to reduced rates without initial investments.