Indiana Next Home Program Guide

Guide to the Indiana Next Home Program

The Indiana Next Home Program is designed to provide financial assistance to homebuyers in Indiana who are looking to purchase their next home. Whether you're a first-time homebuyer or someone who has owned a home before, this program offers affordable mortgage options and down payment assistance. For 2025, the program offers updated eligibility requirements, expanded assistance, and an easier path to homeownership. Below is an overview of the program, including its benefits, eligibility, and how to apply.

1. Program Overview:

• Purpose: The Indiana Next Home Program aims to make homeownership more accessible by providing financial assistance for down payments and offering competitive mortgage rates to eligible buyers.
• Assistance Amount: Homebuyers can receive up to $7,500 in down payment assistance to help cover the initial costs of purchasing a home, making it easier to afford homeownership.
• Loan Structure: The program offers a range of mortgage options, including fixed-rate loans. Assistance comes in the form of a second mortgage, which can help cover down payment and other related expenses.

2. Eligibility Requirements for 2025:

To qualify for the Indiana Next Home Program, applicants must meet the following criteria:

• First-Time Homebuyer: This program is primarily for first-time homebuyers, although individuals who have not owned a home in the past three years may also qualify. Veterans and other specific individuals may be exempt from the first-time homebuyer requirement.
• Income Limits: The program is available to households with income below the established limits, which vary by county. These limits are designed to ensure the program serves low to moderate-income buyers.
• Credit Score: A minimum credit score of 640 is required for the program. Lenders may consider other factors, such as debt-to-income ratio, in determining eligibility.
• Property Requirements: The home must be located in Indiana and must serve as the primary residence of the applicant. The property must also meet certain price limits to ensure it is affordable for the applicant.
• Homebuyer Education: Applicants are required to complete an approved homebuyer education course. This course equips buyers with essential knowledge about the home buying process, budgeting, and mortgage management.

3. How to Apply:

Applying for the Indiana Next Home Program is a straightforward process. Here are the steps involved:

• Assigned Loan Officer: Once you express interest in the program, a dedicated loan officer will be assigned to guide you through the application process. They will assist in verifying your eligibility, answer questions, and help you complete the necessary paperwork.
• Required Documentation: You will need to provide various documents, including proof of income, tax returns, credit history, and the certificate of completion from the homebuyer education course.
• Submit Your Application: Once you have gathered all the required documentation, submit your application to your loan officer. They will process it, determine your eligibility, and provide guidance on the next steps.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete a homebuyer education course. This course covers important topics like mortgage management, home maintenance, and budgeting.
• Course Availability: The course is available online and in-person, depending on your preference. Upon successful completion, you will receive a certificate, which is required as part of your application.

5. Down Payment Assistance Details:

• Assistance Amount: The Indiana Next Home Program offers up to $7,500 in down payment assistance. This helps reduce the initial financial burden of purchasing a home, making homeownership more affordable for eligible buyers.
• Loan Structure: The assistance is provided in the form of a second mortgage, which is typically deferred and only repaid when the home is sold, refinanced, or paid off.

6. Finalizing the Loan:

• Approval Process: After your application is reviewed and approved, your loan officer will guide you through the final steps, including signing your loan documents and completing the home purchase process.
• Closing Costs: While the program helps with down payment assistance, you may still need to cover some closing costs. Your loan officer will provide a breakdown of these costs and assist you in understanding which costs are covered by the program.

Our loan officers are dedicated to ensuring you understand every step of the process. They will help you navigate the application, answer your questions, and ensure you take full advantage of the Indiana Next Home Program. With their assistance, you can make homeownership a reality and take the first step toward owning your next home.