Indiana Home Solution Program

The Indiana Housing & Community Development Authority initiated the NextHome program in an effort to make it more affordable for individuals to finance a home. The purpose of this program is to make funds available to eligible applicants who are interested in purchasing a home but need financial help to pay the upfront costs, such as the down payment and closing costs. These expenses can add up to a substantial amount, and the inability to pay it might keep people stuck in a renters’ trap.
 
Available Assistance:
Under the Next Home program, borrowers with an FHA mortgage from a participating lender receive down payment assistance of 4 percent of the purchase price, while those with conventional loans receive 3 percent. This assistance comes in the form of a deferred loan; it is fully forgiven after two years and comes with zero percent interest and no monthly payments.
 
Eligibility Requirements:
Unlike most down payment assistance programs, Next Home is not solely for first-time homebuyers, and there is no limit on purchase prices, which allows a greater number of applicants to benefit from it. However, there are other requirements that applicants must meet to be considered eligible. Borrowers are required to have a credit score of at least 660 and must have a mortgage from an IHCDA Participating Lender. Applicants must also complete an online homebuyer education course, called Framework. Completion of the course satisfies the Homebuyer Education requirement that is necessary for all homebuyers through the Agency's Single Family purchasing programs. Participants of Next Home are reimbursed the $75 cost of the course at closing. Additionally, applicants must meet specific income limits that are determined based on the county in which they buy a home, the type of program, and type of mortgage.
 
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but States and Local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price and income limits.