Indiana First Place Program Guide

Guide to the Indiana First Place Program

The Indiana First Place Program is a state-sponsored initiative designed to help first-time homebuyers in Indiana achieve homeownership by providing down payment assistance and affordable mortgage options. This program offers financial support for individuals who are ready to purchase a home but need assistance with the initial costs. For 2025, the program continues to provide updated eligibility criteria and benefits to make homeownership more attainable. Below is an overview of the program, including the benefits, eligibility requirements, and the application process.

1. Program Overview:

• Purpose: The Indiana First Place Program assists first-time homebuyers by offering down payment assistance and access to affordable mortgage financing. The program is designed to reduce the financial burden of homeownership, making it more accessible to eligible individuals.
• Assistance Amount: Eligible buyers can receive up to $6,000 in down payment assistance, helping to cover the upfront costs associated with purchasing a home.
• Loan Structure: The assistance is provided in the form of a second mortgage, which is typically repaid when the home is sold, refinanced, or paid off, reducing the immediate financial burden of homeownership.

2. Eligibility Requirements for 2025:

To qualify for the Indiana First Place Program, applicants must meet the following requirements:

• First-Time Homebuyer: This program is primarily for first-time homebuyers, defined as individuals who have not owned a home in the past three years. Certain exceptions may apply for veterans or other specific individuals.
• Income Limits: The program has income limits that vary depending on the county in which the applicant is purchasing a home. These limits are based on the area median income (AMI) and are updated annually to reflect current housing market conditions.
• Credit Score: A minimum credit score of 640 is required to qualify for the program. Lenders may also assess other factors such as debt-to-income ratio to determine eligibility.
• Property Requirements: The home must be the applicant’s primary residence and located in Indiana. Additionally, the home must meet certain price limits to ensure affordability for the applicant.
• Homebuyer Education: Applicants are required to complete an approved homebuyer education course. This course helps buyers understand the homeownership process, including budgeting, mortgage management, and home maintenance.

3. How to Apply:

Applying for the Indiana First Place Program involves several simple steps:

• Assigned Loan Officer: Upon expressing interest in the program, you will be assigned a dedicated loan officer who will help guide you through the application process. The loan officer will assist you in verifying your eligibility and gathering all necessary documents.
• Required Documentation: You will need to provide documentation such as proof of income, tax returns, credit reports, and a certificate of completion for the homebuyer education course.
• Submit Your Application: After gathering all necessary documents, submit your completed application to your loan officer. They will review your application, confirm your eligibility, and provide instructions for the next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: Completion of a homebuyer education course is required for all applicants. The course covers essential topics, including budgeting, managing mortgage payments, and understanding the responsibilities of homeownership.
• Course Availability: The course is available both online and in-person, offering flexibility to suit your schedule. A certificate will be provided upon completion, which must be submitted as part of your application.

5. Down Payment Assistance Details:

• Assistance Amount: The program offers up to $6,000 in down payment assistance, helping to cover a significant portion of the initial home purchase costs.
• Repayment Terms: The assistance is provided as a second mortgage, which is typically deferred and repaid when the home is sold, refinanced, or paid off. No monthly payments are required on the second mortgage.

6. Finalizing the Loan:

• Approval Process: Once your application is reviewed and approved, your loan officer will guide you through the final steps of the process. This includes reviewing and signing loan documents and preparing for the closing process.
• Closing Costs: While the program helps with down payment assistance, you may still be responsible for some closing costs. Your loan officer will provide a breakdown of the costs and help you understand which fees are covered by the program.

Our dedicated loan officers are committed to helping you through every step of the Indiana First Place Program. From the application process to closing, they will guide you, ensuring you understand all the program’s benefits and how to take full advantage of this opportunity. With their support, you can confidently move forward with your homeownership journey and make your dream of owning a home in Indiana a reality.