Purchase a home
The US Department of Housing and Urban Development (HUD) sponsors agencies across the country to provide unbiased advice for you as you plan your home purchase. The goal of pre-purchase counseling and education is to find and address any obstacles stopping you from buying a home or becoming a successful homeowner long-term. We sponsor an online homeownership class at http://ehomeamerica.org/ahc.
After the class, you can make a one on one appointment to talk about your specific situation. During your appointment with a certified counselor, you will be asked to express your own housing goals and ideal timeline. To understand your current situation, we will ask you to pay for a “soft” tri-merged credit report and bring proof of your income. We will read through the report together to identify errors, as well as address outstanding debts or collections that could become barriers to obtaining a home loan. Your counselor will discuss your income and debt to help you compare various types of mortgage loans and down payment assistance programs. At the end of the session, you and the counselor outline the next steps needed to move toward your goals.
(Talk to a counselor to find out more)
FHLBI Home Ownership Opportunities Program: Up to $10,000 for moderate income first time homebuyers who obtain a mortgage loan with participating lender and put at least $1,000 of their own toward the purchase.
USDA Direct Loan Program: Subsidized mortgage loan (rates can act as low as 1%) for low to moderate income households purchasing a home in a rural area.
IHCDA Mortgage Credit Certificate (MCC): Federal Income Tax credit for 20-30% of mortgage interest paid each year for the life of a mortgage loan.
IHCDA Next Home Program: Participating lenders can offer 3-4% of the purchase price toward down payment and closing costs. Second mortgage is no-interest, forgivable after 2 years.
Individual Development Account (IDA) Program: Four-year, matched savings program designed to assist individuals in achieving self-sufficiency through financial literacy and asset generation. For each $1 saved, up to $300 a year, the State of Indiana will match it with $3, usable towards buying a home; furthering your education; enrolling in a job training program; and starting or expanding a small business.
The IFPN was developed by a coalition of community organizations, housing-related agencies, government agencies, lenders and banks, to assist Indiana homeowners who are struggling with—or who are at risk of—mortgage delinquency and foreclosure.
By analyzing each individual’s situation, identifying available options, and developing personalized foreclosure prevention plans, our counselors empower homeowners to make informed choices regarding their mortgage situation. This could involve anything from making adjustments to a budget, applying for mortgage assistance through lender programs, or exploring alternatives to homeownership.
A 2014 study sponsored by the Urban Institute found that households that worked with a housing counselor were 2.83 times more likely to receive a loan modification, and 70% less likely to redefault on a modified loan. Counseled clients also saved more per year compared to modifications given to non-counseled borrowers.