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NOTICE:  Be advised that at this time, IHCDA Homeownership will suspend the offering of Next Home CONV Fannie option through our Next Home Program.  Beginning December 5th, 2019, the Next Home Program will only be offered through FHA financing.  This does not affect the Next Home Advantage program through Freddie Mac.  IHCDA does not reimburse First Time Home Buyer Course fee unless taken through IHCDA’s Framework listed within our website.   

If you have questions; please contact an IHCDA team member for assistance.  Thank you for participating in the IHCDA Homeownership Programs.

Indiana Home Solution (IHS)

  • First-time homebuyers only, unless purchasing in a targeted county/area
  • FHA, 30-year fixed loan
  • Lower interest rate for qualified veterans
  • Minimum credit score of 660
  • Down Payment Assistance (DPA) of 6%, based off of purchase price in which cannot exceed the appraised value
  • DPA can be used for down payment, closing costs & pre-paids
  • Acquisition and program income limits apply
  • 15 year affordability period - Proration beginning in year 11 of 20% and every year after, adding an additional 20%, until forgiven at year 15
  • 2nd mortgage & IHCDA promissory note, no payments/no interest
  • Participating lender can charge 1% origination fee and up to $1,000 in lender customary fees
  • Recapture Tax applies
  • Reservation fee $100
  • 2019 Indiana Home Solution (IHS) w HOV Program Guide

Helping To Own (H2O)

  • First-time homebuyers only, unless purchasing in a Targeted area
  • FHA 30-Year fixed loans only
  • 100% financing
  • Down Payment Assistance (DPA) grant of 3.5%, does not have to be re-paid
  • Program Income limits Apply
  • Minimum credit score of 660
  • Reservation fee $100
  • 2019 Helping to Own (H2O) Program Guide

Mortgage Credit Certificate (MCC)

  • First time homebuyer unless purchasing in a targeted area (see Program Guide for targeted areas)
  • Income and Acquisition limits apply
  • 30 year fixed rate (lender sets rate)
  • Federal Tax benefit
  • FHA, Conv, VA or USDA Rural Housing financing eligible
  • Reservation fee $500
  • 2019 MCC Program Guide

Next Home Advantage

  • Does not have to be a first-time homebuyer
  • IHCDA Income Limits apply
  • 30-year fixed rate (set by IHCDA)
  • Conventional Financing
  • Minimum credit score of 640
  • DPA 3% of purchase price or appraised value, whichever is less
    • DPA forgiven in 2 years
  • Reservation fee $100
  • 2019 Next Home Advantage Program Guide

Next Home Advantage with Subsidy

  • Does not have to be a first-time homebuyer
  • IHCDA/Freddie Mac Income limits apply
  • 30-year fixed rate (set by IHCDA)
  • Conventional Financing
  • Minimum credit score of 640
  • DPA 3% of purchase price or appraised value, whichever is less
    • DPA forgiven in 2 years
    • Additional Subsidy DPA;
      • $2,500 received if qualifying income ≤ 50% of AMI
      • $1,500 received if qualifying income > 50% to ≤ 80% of AMI
      • Subsidy DPA is a grant
    • No cash back at closing except for what Mortgagor has paid into the loan
    • Reservation fee $100

    Next Home Advantage with MCC

    • First-time homebuyers only, unless purchasing in a targeted area or a qualifying Veteran
    • IHCDA Income and Acquisition limits apply
    • 30-year fixed rate (set by IHCDA)
    • Minimum credit score of 640
    • Conventional Financing
    • Federal Tax benefit
    • DPA 3% of purchase price or appraised value, whichever is less
      • DPA forgiven in 2 years
    • Recapture Tax applies
    • No cash back at closing except for what Mortgagor has paid into the loan
    • Reservation fee $100

    Next Home Advantage with MCC and Subsidy

    • First-time homebuyers only, unless purchasing in a targeted area or a qualifying Veteran
    • IHCDA/Freddie Mac Income and Acquisition limits apply
    • 30-year fixed rate (set by IHCDA)
    • Minimum credit score of 640
    • Federal Tax benefit
    • DPA 3% of purchase price or appraised value, whichever is less
      • DPA forgiven in 2 years
    • Recapture Tax applies
    • Additional Subsidy DPA;
      • $2,500 received if qualifying income ≤ 50% of AMI
      • $1,500 received if qualifying income > 50% to ≤ 80% of AMI
      • Subsidy DPA is a grant
    • No cash back at closing except for what Mortgagor has paid into the loan
    • Reservation fee $100              

    Next Home (NH)

    • Does not have to be a first time homebuyer
    • Income limits apply
    • 30 year fixed rate (set by IHCDA)
    • Minimum credit score of 660 (FHA)
    • FHA financing eligible
    • 2 year affordability period
    • DPA – 3.5% of purchase price or appraised value, whichever is less for FHA
    • No cash back at closing except for what the Mortgagor paid into the loan
    • Reservation fee $100
    • 2019 Next Home Program Guide

    Next Home with Mortgage Credit Certificate (NH/MCC)

    • First time homebuyer unless purchasing in a targeted area (see Program Guide for targeted areas)
    • Income and Acquisition limits apply
    • 30 year fixed rate (set by IHCDA)
    • Minimum credit score of 660 (FHA)
    • Federal Tax benefit
    • FHA financing eligible
    • 2 year affordability period
    • DPA – 3.5% of purchase price or appraised value, whichever is less for FHA
    • No cash back at closing except for what the Mortgagor paid into the loan
    • Reservation fee $100