First Time Home Buyer

 Programs in Indiana

Complete First Time Home Buyer Programs Available in Indiana.

The state agency created by the legislature in Indiana to offer first time home buyer programs is the Indiana Housing and Community Development Authority. Here is a summary of the current first time home buyer programs that are offered:

First Home

The First Home program offers below market interest rate mortgages to qualified persons. Interest rates can vary, but are usually one-half to one percent below the market rate. This program may be used in conjunction with FHA/VA, Fannie Mae, or USDA Rural Development financing. The current interest rate may be obtained either from this web site or 24 hours a day, 7 days a week at (888) 227-4452.

First Home/PLUS

The First Home/PLUS program offers a First Home loan as well as a 5% down payment assistance second mortgage, capped at $3,500 respectively, with zero interest and no payments, which is forgiven if the borrower does not refinance and remains in the home for a specified period of time.

First Home 100

First Home 100 is a partnership with the U.S. Department of Agriculture’s Rural Development office. Borrowers in rural areas can qualify for a combination of two mortgages, the first being an HCDA First Home loan with a below market interest rate and the second being a Rural Development loan with an interest rate based on the borrower’s ability to pay. Borrowers can also qualify for down payment assistance as with other HCDA programs. Persons interested in this program should contact their local Rural Development office.

Mortgage Credit Certificates

The Mortgage Credit Certificate program offers first-time homebuyers a Federal tax credit. The tax credit amount ranges between 20% and 35% of the interest paid on a mortgage each year, depending on the mortgage loan amount. The maximum credit per year is $2,000. This program is available on a limited basis when announced by HCDA.

Community Mortgage 100% Option

My Community Mortgage 100% is a partnership program with Fannie Mae that offers affordable homeownership opportunities for borrowers that are low to very low-income. The program offers a minimum contribution of $500 from the borrower’s own funds. The seller may contribute up to 3% of the sales price to help with closing costs. This program has greater flexibility in qualifying and underwriting standards. In addition, borrowers may qualify for HCDA’s down payment assistance.

Community Solutions 100

Community Solutions 100 is a partnership program with Fannie Mae that enables Teachers, Fire Fighters, Law Enforcement, and State and Municipal workers to purchase a home with as little as $500 of their own funds. The program allows for higher loan-to-value options, lower our-of-pocket costs and more flexible underwriting criteria. The seller may contribute up to 3% of the sales price to help with closing costs. In addition, borrowers may qualify for HCDA’s down payment assistance.

Community Home Choice

Home Choice is a partnership program with Fannie Mae that offers affordable homeownership opportunities for people with disabilities or families who have a person with a disability living with them. The Community HomeChoice mortgage loans offer low down payments; greater flexibility in qualifying and underwriting standards; and acceptance of nontraditional credit histories. In addition, borrowers may qualify for HCDA’s down payment assistance.

For complete details on these first time home buyer programs available to Indiana residents, visit the Indiana Housing and Community Development Authority website.

Se also the First Time Home Buyer Grants page.

Best Lender For First Time Home Buyer Loans

Unfortunately, some lenders do not like to work with first time home buyers (due to not having a track record), and prefer instead to only provide mortgages to people who have previously owned a home. If you do not need help with the down payment and are not in need of any state program, but simply want to apply for a mortgage, we recommend  ING DIRECT Orange Mortgage They have great rates, an easy online application, and welcome first time home buyers. Additionally they have not been as severely hurt by the subprime mortgage crisis and are still approving the majority of applications.

Other First Time Home Buyer Programs & Resources