An individual walks an extra milestone in buying a dream home, and taking a step closer to it is a truly emotional moment that brings joy to life. Many of us prefer loans since it takes a significant investment to buy a house. First-time home buyers need careful analysis in order to make the right decision. 

If you are at the stage when you are ready or planning to buy the first home of your life in Indiana, you need to know several things, including the first-time home buyer program. Luckily, buying a home in Indiana has become easy with the help of mortgage brokers. These professionals help individuals, from low to moderate income, with loan facilities at affordable interest rates. 

In this blog, we will ease your first-time home-buying journey in Indiana with a detailed guide. We will explain everything about the entire home buying process, from reasons to choose a mortgage broker to the advantages of the first-time home buyer program and more.


What Is a First-Time Home Buyer Program?

Buying homes is not easy due to high inflation. According to Redfin, the median home sale price in Indiana rose 11.8% YoY by April 2022, nearly $255,000, resulting in a home sale rate decline of 16%.

Considering the rising prices, Indiana Housing And Community Development Authority introduced a first-time home buyer program for home buyers seeking to purchase homes in the target area and qualified veterans unable to meet their first-time home buying requirements. 

This is one of the best programs to help people buy their dream home easily at affordable interest rates. 


Advantages Of First Time Home Buyer Program

The first-time home buyer program allows borrowers to obtain a certain percentage of the home value as the down payment, and the rest is divided into installments that reduce the burden and eases the home buying process. 


Indiana’s First-Time Home Buyer Program: An Overview

Buying a home in Indiana has become easy and affordable because of the Indian Housing And Community Development Authority (IHCDA). There are three first-time home buyers programs that provide great deals on FHA, VA, and Conventional mortgages. 

  • First Place Program

First Place Program allows first-time buyers to borrow up to 6% of the home’s purchase loan for a down payment or closing cost in the form of a forgivable second mortgage. Additionally, the mortgage requires no monthly payments, incurs no interest, and is fully forgivable after nine years. However, buyers can sell and refinance the home in the interim. 

  • Next Home Program

In the Next Home Program, first-time buyers can obtain up to 3.5% of the overall value of their home purchase for a down payment if using a 30-year FHA loan.   

  • Mortgage Credit Certificate

This type of program provides an annual federal income tax credit for up to $2000 of mortgage interest paid per year. First-time buyers can apply for a mortgage through a participating lender when they apply for a loan. 


Eligibility & Application: Your Way To Homeownership 

Before applying for a loan, the borrower must know the eligibility criteria. You can qualify for the first-time home buyer program with a 30-FHA loan. To be eligible, you must be a first-time home buyer, ━ defined as someone who has not owned a home in the past three in the target area or a veteran.  

Borrower Requirements ━ 

  • 640 minimum credit score with a DTI* ratio under 45%
  • 680 minimum credit score with DTI above 45% (but under 50)
  • Must meet IHCDA income limits, which may vary $82,100 to $138,740, depending on the home location and number of people who will live in the house. 

*Debt-to-ratio income

Property Requirements ━

  • Location must be in Indiana
  • Must be a primary residence 
  • Must meet IHCDA purchase price limit 
  • Must be a single-family home 

If you meet these eligibility criteria, you will be way closer to your first home.  


How To Apply For First-Time Home Buyers Program In Indiana

Applying for the first time to a home-buyers program in Indiana is quite simple. To start applying for IHCDA, an individual needs to complete an online survey to see what assistance programs are available in your county. Furthermore, depending on the county you reside in, you may be able to qualify for additional assistance based on your municipality. 

Once the online survey is completed, individuals will receive an email detailing what programs they might be eligible for. The mail will also contain the next steps for the home buying process. 

Now you can start searching for participating mortgage brokers. The broker will help you with the further proceedings. They will check your credit score and DTI to ensure your mortgage eligibility. Thereafter, they will find the best mortgage plan meeting your requirements. Once you choose the best mortgage plan, they will submit the loan application and help you close the first-time home buyer process. 

Not only this, they provide a complete assessment, even explaining to you how to calculate a mortgage payment


Reason To Choose A Mortgage Broker For Your Home-Buying Journey

A mortgage broker can provide invaluable assistance in finding and obtaining a mortgage loan. They simplify the entire process of home-buying and give you peace of mind. When you have the best mortgage broker, they can help you in the following ways. 

  • Save your time and money 
  • Access to better rates and terms
  • Save additional fees and commissions 
  • Access to expert knowledge
  • Find the best interest rate & type of loan meeting to the needs
  • Support throughout the process 
  • Resolve your queries

Therefore, the experience of home buying is more enjoyable and hassle-free from start to end.


A Step Closer To your Dream Home With The Best Broker In Indiana

Finance won’t be an issue in your home buying process if you know the best mortgage broker. Mortgancial Planner is the most reliable mortgage broker in Indiana, helping first-time home buyers buy their dream homes. We understand the issues in buying homes; therefore, we provide complete assistance to our clients and ease their home-buying process. So contact us to plan your home-buying journey with us!