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Indiana Down Payment Assistance

For many, coming up with a down payment is one of the biggest barriers to home ownership. But it doesn't have to be.

Many people can take advantage of down payment assistance programs. I can help you find the right program for you.

Indiana Housing & Community Development Authority Programs

IHCDA has a plethora of programs to choose from.

Veterans can take advantage of the Honor Our Vets program. This program is available even if you're not a first-time home buyer. You can receive 100% financing if your income falls within certain limits.

If you're a first time home buyer the H20, or "Helping to Own" program might be right for you. And if you're willing to live in a targeted area, this program might be available even if you're not a first time home owner. If you are a low-income buyer with a credit score of at least 660 you can get a down payment assistance grant of 3.5%, enough to manage an FHA loan.

The Next Home Advantage program is another option. Low income families who are not first-time homebuyers and who have a credit score of at least 640 can receive down payment assistance of up to 3.5% for an FHA loan or 3% for a conventional one. This serves as a second mortgage on the property, but the debt is forgiven in two years. You will have to pay that second mortgage the full two years, or it can send your house into foreclosure.

The Next Home Advantage program can sometimes be combined with subsidies and MCCs to offer an even greater degree of assistance. See the IHCDA website for details, or just ask me when you come in to speak to me.

Are there any other sources of assistance?

If you can pay a $500 reservation fee, you could use the Mortgage Credit Certificate program. This is either for first-time homebuyers or people purchasing homes in targeted areas. All loan types except jumbo loans are acceptable, as long as they're 30 year fixed rate mortgages. Instead of giving direct down payment assistance, this program gives you assistance in the form of a tax credit. See my article on Mortgage Credit Certificates for more details.

Grants are only available at the state level. The Department of Housing and Urban Development gives money to the state programs, who in turn manage those programs as they see fit. And if private grants are available, they aren't easy to find.

The solution may be an FHA loan, which allows you to receive down payment assistance from family members or close friends.

If you can't get assistance that way and are pursuing a conventional mortgage, some lenders will allow sellers to contribute up to 6% to cover either the down payment or closing costs.

Don't let your income stand in the way of home ownership.

If your income is steady and the house is within your means, I can find a mortgage that's right for you, and the down payment assistance program that's right for you. If your credit score needs help before you are able to take advantage of the right program, you can take advantage of advice from A&M Mortgage group to improve your chances of approval.

Every situation is unique. Call or stop by today to learn more.

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