Indiana Provides Assistance Programs for First-Time Homebuyers
The article discusses various assistance programs available for first-time homebuyers in Indiana. The Indiana Housing & Community Development Authority (IHCDA) offers down payment assistance through its First Place and Next Home programs. The First Place program provides a second mortgage of up to 6 percent of the purchase price to help low- and moderate-income residents purchase homes. The second mortgage is forgiven after nine years if the buyer continues to live in the home and keeps current on all other homeowner duties.
However, if the property is sold or refinanced during that period, the second mortgage must be repaid. The Next Home program offers down payment assistance of up to 3.5 percent of the purchase price, and the borrower requirements, income limits, and property cost limits are the same as those for the First Place program.
In addition to these programs, Indiana offers other assistance options, including the Mortgage Credit Certificate (MCC) program, which provides a federal income tax credit of 25 percent of the amount borrowed, up to $2,000 per year. The credit can be used in tandem with the IHCDA’s Next Home program.
Local down payment assistance programs are also available in some Indiana cities. For example, the HAND Down Payment and Closing Cost Assistance program in Bloomington provides up to $10,000 for first-time homebuyers who earn up to 80 percent of the area’s median income. The program is a second mortgage but is forgiven after five years.
To get started, interested homebuyers can complete a questionnaire on the IHCDA website to determine which assistance options they might qualify for. They can then compare mortgage rates and options from the many lenders participating in the IHCDA’s programs. It is advisable to investigate all the programs that could fit the individual’s situation, and as the article suggests, mortgage rates could continue to rise in 2023, so taking advantage of these programs sooner rather than later is recommended.