Indiana First Place Program

The Indiana First Place Program, administered by the Indiana Housing and Community Development Authority (IHCDA), is designed to assist first-time homebuyers in achieving homeownership. By offering low-interest mortgages and optional down payment assistance, this program helps make purchasing a home more accessible and affordable for eligible Indiana residents.

Benefits

Provides 30-year fixed-rate mortgages with competitive interest rates for stable and predictable monthly payments.
Offers optional down payment assistance to help cover upfront costs, making homeownership attainable for more buyers.
Designed specifically for first-time homebuyers or individuals purchasing in designated targeted areas.
Can be paired with other IHCDA programs to enhance financial support and affordability.

Eligibility Requirements

Applicants must be first-time homebuyers, defined as individuals who have not owned a primary residence in the past three years, unless purchasing in targeted areas.
Income limits apply and vary based on household size and the location of the property.
The property must be located in Indiana and used as the buyer’s primary residence.
A minimum credit score of 640 is required, with adherence to lender-specific underwriting guidelines.
Participants must complete a homebuyer education course to prepare for the responsibilities of homeownership.

Additional Information

The Indiana First Place Program is a cornerstone initiative for first-time homebuyers in the state, providing crucial financial support and affordable mortgage options. By reducing the upfront costs of purchasing a home and ensuring predictable loan terms, the program empowers eligible residents to achieve stability and invest in their futures. Administered by the Indiana Housing and Community Development Authority, the First Place Program is a vital resource for building strong communities and promoting sustainable homeownership across Indiana.

Frequently Asked Questions About Our Program

What is the Indiana First Place Program?

The Indiana First Place Program, offered by the Indiana Housing and Community Development Authority (IHCDA), provides down payment assistance to qualifying first-time homebuyers. This assistance aims to make homeownership more accessible by reducing the upfront costs associated with purchasing a home.

Who is eligible for the First Place Program?

Eligibility is primarily for first-time homebuyers, defined as individuals who have not owned a home in the past three years. Exceptions are made for those purchasing in targeted areas and qualified veterans. Applicants must meet specific income limits, which vary by county and household size, and must have a minimum credit score of 640.

How much down payment assistance is provided?

The First Place Program offers down payment assistance of up to 6% of the purchase price, not to exceed the appraised value of the home. This assistance is provided as a second mortgage with zero interest and no monthly payments, and it is fully forgiven after nine years, provided the homeowner does not sell or refinance the property during that period.

Are there purchase price limits for homes under the First Place Program?

Yes, the program imposes purchase price limits that vary by county and are subject to federal acquisition limits. These limits ensure that the program assists low- to moderate-income families in purchasing affordable homes.

Is homebuyer education required for the First Place Program?

Yes, all borrowers are required to complete a homeownership counseling course to ensure they are well-prepared for the responsibilities of homeownership.

Can the First Place assistance be used with different types of mortgage loans?

The program is designed to be paired with FHA 30-year fixed loans, providing stability and predictability in mortgage payments for borrowers.

What happens if I sell or refinance my home before the nine-year forgiveness period ends?

If the property is sold or refinanced before the nine-year period concludes, the remaining unforgiven portion of the down payment assistance must be repaid at that time.

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Are there specific property types eligible under the First Place Program?

Eligible properties include single-family homes, townhouses, condominiums, and certain manufactured homes, provided they will serve as the borrower's primary residence.

Is there a first-time homebuyer requirement for the First Place Program?

Yes, applicants must be first-time homebuyers, unless they are purchasing in a targeted area or are qualified veterans.

Are there income limits for the First Place Program?

Yes, income limits apply and vary by county and household size. These limits are designed to assist low- to moderate-income families in achieving homeownership.

Is mortgage insurance required when using the First Place Program?

Mortgage insurance requirements depend on the type of first mortgage loan selected. For FHA loans, mortgage insurance premiums (MIP) are typically required.

How do I apply for the First Place Program?

To apply, you need to work with a participating lender who will guide you through the application process, including verifying eligibility, assisting with necessary documentation, and explaining program requirements.

Are there occupancy requirements for the First Place Program?

Yes, the property purchased must be occupied as the borrower's primary residence throughout the nine-year forgiveness period.

Can the First Place assistance be used for new construction homes?

Yes, the assistance can be applied to both newly constructed and existing homes, provided all other program criteria are met.

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Is there a prepayment penalty for the First Place loan?

No, there is no prepayment penalty. However, if you sell or refinance the home before the nine-year forgiveness period ends, the remaining unforgiven portion of the down payment assistance must be repaid.

What documentation is required to apply for the First Place Program?

Applicants will need to provide proof of income, employment, credit history, and completion of the required homeownership counseling course, among other standard loan application documents.

Can the First Place assistance be combined with other down payment assistance programs?

Combining the First Place assistance with other programs may be possible, subject to specific program guidelines and approval. It's advisable to consult with your lender to explore available options.

Is the First Place Program available statewide?

Yes, the program is available throughout Indiana, but income and purchase price limits vary by location.

What is the interest rate on the First Place down payment assistance loan?

The down payment assistance is provided as a zero-interest loan with no monthly payments, and it is fully forgiven after nine years, provided program requirements are met.

Are there specific debt-to-income (DTI) ratio requirements for the First Place Program?

Yes, DTI ratio requirements are established to ensure borrowers can comfortably manage their mortgage payments. A minimum FICO credit score of 640 is required with a DTI of less than 45%, and a minimum FICO credit score of 680 is required with a DTI greater than 45% but less than 50%.