Help for Hoosier Homebuyers

New Opportunities for Potential Homebuyers

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From The Indiana Housing & Community Development Authority

Prosperity begins at home!

IHCDA is committed to helping low-income families accumulate assets and climb the economic ladder.  As part of the Housing and Economic Recovery Act of 2008, HUD created the Neighborhood Stabilization Program (NSP). 

Under this program, IHCDA designed the Market Stabilization Program to assist income-eligible households purchase and rehabilitate foreclosed homes throughout Indiana.

The Market Stabilization Program offers :

• Homebuyers at or below 120% of area median income up to $15,000 (not to exceed 20% of purchase price) to purchase a foreclosed home as their principal residence.
• Closing costs and down payment assistance to acquire the foreclosed home.
• Rehabilitation funds to bring the foreclosed home up to local building code
• A zero-interest, non-amortizing second mortgage loan. These funds are not required to be repaid if the property remains the homebuyer’s principal residence for at least ten years.
• 8 hours of pre-purchase education provided by an IHCDA certified counselor at no cost to the homebuyer.
• An easy online tool at www.IndianaHousingNow.org to determine if a foreclosed property is in an eligible neighborhood.

Note: These funds may be used in conjunction with the IHCDA First Home product, Mortgage Credit Certificate, FHA, VA, USDA or prime fixed rate products. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.

Additional Opportunities for Homebuyers:

The Federal Home Loan Bank of Indiana (FHLBI):

• Up to $10,000 in Neighborhood Stabilization Assistance to match an NSP investment.
• Homebuyers may use these funds for closing costs and down payment assistance.
• Eligible properties include NSP-assisted single-family homes and condominiums, and homebuyers must complete face-to-face state or HUD-certified counseling prior to purchase.
• 3 additional set-aside programs through their member financial institutions to assist in the creation and preservation of affordable homeownership in Indiana.

IHCDA Mortgage Programs offer:

• Qualified Hoosiers below market fixed-rate mortgages. Current interest rates can be found by visiting the “Homebuyers” section of www.ihcda.in.gov.

The Mortgage Credit Certificate Program:

• Offers a Federal tax credit for first-time homebuyers.
• The tax credit amount ranges between 20% and 35% of the annual interest paid on a mortgage, depending on the loan amount.
• The maximum credit per year is $2,000 and the program is available on a limited basis when announced

Qualify for an FHA mortgage?  Buy a HUD home and pay only $100 down!

Please call for more information on any of these programs!

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