First Time Home Buyers Down Payment Assistance
INDIANA HOUSING DOWN PAYMENT ASSISTANCE PROGRAM
If you are a first time home buyer in Indianapolis, you should know your financing options. The Indiana Housing Program for first time home buyers who are creditworthy, but may not have the initial upfront costs for down payment and closing costs is a great option. I received this information from one of my lenders with the guidelines for the Indiana Housing Down Payment Assistance Program.
The general guidelines are as follows:
1.First time buyers or someone who has not been entitled to real estate in the past 3 yrs.
2.Indiana Housing will provide down payment assistance in the amount of 6% of the sales priced capped at $7500.00
3.This down payment can be used for required down payment, closing costs and prepaids.
4.The buyers are required to take a home buyer counseling course - This is an online course through Indiana Housing University.
5. A 3rd party housing inspection is required by Indiana Housing- Indiana Housing has a list of approved inspectors they allow- if the customer is having a regular home inspection. By using an approved inspector for your home inspection, you may save some money.
6. Income requirements do apply: Indiana Housing uses total household income- regardless if all members in the household are on the loan. For Marion County and surrounding counties the income requirements are as follows:
- For 1 person in the household- max income is $38,150
- For 2 people in the household-max income is $ 43,600
- For 3 people in the household-max income is $ 49,050
- For 4 people in the household-max income is $ 54,500
7. The down payment assistance you can receive is carried as a 2nd mortgage against the loan- the borrower makes no payments on these monies. Regardless of when they sell the home, the funds will have to be paid back to Indiana Housing out of the proceeds of the sale.
8. There is a possible recapture tax owed by the borrower if they sale the property within the first 9 years.
9. Interest rate as of today is 4.95%- this is a fixed 30 yr. term (subject to change)
10. If the property is in a flood area may not go Indiana Housing
11. The home must be the borrowers principal residence
12. A rental tenant must not have occupied the subject property within the past 3 months unless the current tenant is the purchaser
13. Borrower's must provide copies of the past 3 years tax returns
14. A reservation fee of .125% to Indiana Housing is required when the file is submitted to them
15. It will take approximately 45 days for the loan from start to finish, which is a bit longer than other loan programs..
16. Non-occupant co-borrowers are not allowed If you have additional questions or want to see if you qualify for the first time home buyer program, give me a call and we'll get started.
Copyright © 2010 by Paula Henry, All Rights Reserved. *First Time Home Buyers Down Payment Assistance*