Getting Down Payment Assistance Through IHCDA
Something most don’t realize is there are lots of programs and people out there who want to see you close on your first home, too — and they’re willing to help pay for it.
The accomplishment of buying your first home is – for all intents and purposes – a financial one. Anyone who’s done it can tell you it takes time, hard work, and a ton of grit to prepare yourself for all the costs associated with homeownership.
Since starting our partnership with Waterstone Mortgage, we’ve been learning a lot more about the world of home financing. Something most don’t realize is there are lots of programs and people out there who want to see you close on your first home, too — and they’re willing to help pay for it.
Today we’re going to look at one program in particular designed to help cover the cost of your down payment.
Just as a quick note: the financial tip we’re sharing today is specific to residents of Indiana, but there are similar programs all over the country.
How Does It Work?
The Indiana Housing & Community Development Authority (IHCDA) offers Down Payment Assistance to first-time homebuyers. This assistance, which is 3-4% of your new home’s total cost, comes in the form of a second mortgage, which carries no interest, requires no payments, and is forgiven after two years of living there!
You won’t have to pay a dime of those funds back unless you decide to sell or refinance before the 2 years are up. For some Hoosiers, that’s a big deal.
We build homes because we believe in the importance of communities. And state-funded programs like this are great for young families looking to grab their piece of the American dream sooner, rather than later.
Who qualifies for IHCDA Down Payment Assistance?
According to the IHCDA website, qualification for any of their financial assistance programs is determined by your total household income being under the program income limit for the county you are purchasing your home in.
For most of the state (with the exception of a few ‘target areas’) you must also be a first-time homebuyer to qualify.
Target areas include the following Indiana counties: Brown; Clinton; Crawford; Daviess; Dearborn; Decatur; Fayette; Franklin; Fulton; Greene; Jackson Jasper; Jefferson; Knox; Lawrence; Miami; Ohio Orange; Owen; Parke; Perry; Pike Rush Scott; Shelby; Spencer; Vermillion; Vigo; Washington; and Wayne.
If you live in any of those places, you’re capable of qualifying for down payment assistance regardless if you’re purchasing your first home.
For more details, we encourage you to track down and contact a participating lender — they can help you determine if you qualify and for how much. Our own loan originator at Waterstone, Craig Huebner, can also help you with any questions.