The Indiana Housing and Community Development Authority (IHCDA), through participating lenders around the state, offers qualified homebuyers a tremendous home financing opportunity. If you are ready to buy or build a home in the state of Indiana, this program may help you.
What is the benefit of First Home?
IHCDA’s First Home program offers eligible buyers an interest rate on their mortgage that is below the market rate. Please read this brochure carefully to determine if you qualify, then contact a participating lender in your area. For a list of participating lenders, go to www.indianahousing.org.
The mortgage loan you obtain must only be for the purchase of a home and not for the refinance of an existing mortgage loan or land contract. Exceptions are construction-to-permanent loans and construction loans with an initial term of less than 24 months. The interest rate is for a 30-year, fixed-rate mortgage only. The type of loan you obtain may be a FHA, VA, USDA Rural Development or Fannie Mae-qualified conventional loan with private mortgage insurance. The lender can help you decide which type of loan is best for you.
The total gross annual household income for all residents living, or intending to live, in the home must be within the county income limits. For a list of county income limits, go to www.indianahousing.org, or call (800) 872-0371. The gross annual household income is calculated using all sources of income, including, but not limited to: wages, overtime, bonuses, child support, alimony, commissions, shift differential, and earnings from a second job, business and/or investments. You must occupy the home within 60 days of loan closing or within 60 days of completion.
Do I have to be a first-time homebuyer?
Only first–time homebuyers may participate in the program unless you are purchasing a home in a targeted area (see explanation of targeted areas). A first-time homebuyer is someone who has not had an ownership interest in a primary residence for the past three years. Land contracts do constitute an ownership interest. A mobile home does not constitute an ownership interest unless it is permanently affixed to land and taxed as real estate.
The allowable acquisition price of a home financed through this program varies by county and whether you are buying an existing or new home. A list of acquistion price limits is available at www.indianahousing.org, or by calling (800) 872-0371.