If you are looking for an Indianapolis home and finding it difficult to come up with the funds for the down payment and closing costs associated with buying a home, the Indiana Housing & Community Development Authority is introducing a new program called "Next Home Single Family Program".
This program is designed for those who may be in the process of selling their current home and realize they will only break even or possibly come out of pocket to get out of their current home, meaning they will have to sink any of their current savings into their current property leaving them with no funds to fund the purchase of their "next home". In addition to buyers interested in upgrading/up-sizing their current property, this new program is also applicable to 1st time home buyers here in the Indianapolis, Avon, Brownsburg, Carmel, areas (all of Indiana).
At this time, information is limited. I will post new information as it becomes available. In a nutshell the program information is as follows:
- Is applicable to FHA loans only
- 4% of the purchase price can be given to the borrow in the form of a second loan on the property. You will not make any actual payments on this loan IF you stay in the home for at least two years. If you do stay in the home for 2 years or more, the entire loan amount (for the second loan) is forgiven, meaning you do not need to pay the money back.
- You must have a minimum credit score of 650
- Income limits vary based on county: Marion, Hendricks, Johnson, and Hamilton counties are $85,875
- Interest rates are slightly higher than regular interest rates for FHA loan. For instance, the current rate for this program is 5.5%, it will fluctuate just as any other rates fluctuate dependent upon the current market conditions. It is a fixed rate.
- Both 1st time home buyers and experienced home buyers can take advantage of this program
- Not all lenders will offer this program.