Indiana Mortgage Overview
If you live in the Hoosier State, you're
among 6.7 million people. The median home price in Indiana is an affordable
$141,000 and almost 70 percent of the homes are owner-occupied. Indiana offers
many first-time homebuyer programs, making it easy to go from renting to
homeownership with support.
Indiana FHA loans
The Indiana FHA loan is a
low down payment program for borrowers with less than perfect credit. You need
just a 580 credit score and a 3.5 percent down payment to qualify. If you have
a credit score between 500 - 579, you can still get a loan, but with a 10 percent
down payment. The FHA underwriting guidelines are flexible and easy for
first-time homebuyers.
Indiana VA loans
Veterans of the military
enjoy the benefits of a 100 percent loan program from the VA. With no down
payment and only 620 credit score requirements, it's easy for veterans to
secure the financing they need to become homeowners.
Indiana USDA loans
Borrowers who don't qualify
for either of the above government loans may be eligible for an Indiana USDA
loan. The program doesn't require a down payment and has flexible underwriting
guidelines. All you need is a 640 credit score and income that's less than 115
percent of the average for the area to be eligible.
Indiana conventional loans
If you have good
credit and at least 3 percent to put down on a home, you may qualify for a conventional
loan. You need a 660 credit score and a decent debt-to-income ratio.
Conventional loans have tougher guidelines, but if you qualify, you only pay
PMI until you owe less than 80 percent of the home's value.
First-Time Homebuyer Programs in Indiana
First Place Program
Eligible applicants
receive down payment assistance of up to 6 percent of the sales price and an
FHA 30-year fixed-rate loan. You need at least a credit score of 640 if your
debt ratio is less than 45 percent or 680 credit score with a debt ratio of 50
percent.
Next Home
Eligible applicants receive down
payment assistance of up to 3.5 percent and an FHA 30-year fixed-rate loan. Like
the First Place Program, you need a minimum 640 credit score with a 45 percent
debt ratio and 680 credit score with a 50 percent debt ratio.
Mortgage Credit Certificate
The Mortgage
Credit Certificate gives first-time homebuyers a tax credit for the interest
they pay on their mortgage (up to $2,000) per year.
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