Getting the Best Mortgage as a First Time Home Buyer in Indiana
First time home buyers in Indiana are crucial to ensuring that the real estate market in Indiana continues to thrive. In fact, according to the National Association of Realtors, first time home buyers account for 40 percent of all real estate sales.
Purchasing a home for the first time can be an incredibly exciting time—it marks an important milestone in the transition from renting to homeownership.
As a first time home buyer in Indiana, you’re likely to have many questions, including:
- How much home can I afford?
- What are my options for Indiana mortgages?
- Are there any first time home buyer programs in Indiana?
No matter whether you’re ready to start house hunting or you’re simply exploring possibilities, understanding your options for down payment assistance in Indiana can make a world of difference as an Indiana first time home buyer.
How Much House can a First Time Home Buyer in Indiana Afford?
When it comes to purchasing a home, affordability is much more complicated than simply finding out how much you can borrow with a mortgage for first time home buyers in Indiana.
You’ll also have to take into consideration additional affordability factors, like the closing costs of purchasing a home and your overall financial wellness.
To start exploring how much house you can afford, visit any of the below calculators for Indiana first time home buyers to analyze factors like location, household income, down payment, and monthly debt.
First Time Home Buyer Programs in Indiana
Aside from the mountains of paperwork and lists of financial jargon, many first time home buyers in Indiana find that money is the biggest challenge when obtaining a mortgage.
Thankfully, there are plenty of first time home buyer programs in Indiana that provide down payment assistance, making homeownership accessible and affordable for Indiana first time home buyers.
Depending on eligibility, Indiana first time home buyers may qualify for any of the following first time home buyer programs in Indiana:
- Helping to Own (H2O)—Down payment assistance of 3.5 percent, only available to first time home buyers in Indiana
- Mortgage Credit Certificate (MCC)—Eligible for FHA, VA, USDA, or Conv financing for Indiana first time home buyers only
- Next Home (NH)—Down payment assistance of 3.5 percent
- Next Home with Mortgage Credit Certificate (NH/MCC)—Provides federal tax benefit for a first time home buyer in Indiana
- Affordable Home (AH)—FHA financing for first time home buyers in Indiana who meet income limits
- My Home (MH)—Minimum credit score of 640 for existing loans with an LTV equal or less than 95 percent
- My Home with Mortgage Credit Certificate (MH/MCC)—Only available for Indiana first time home buyers, unless purchasing in specific areas
Below, you can find a list of additional home buyer programs that a first time home buyer in Indiana may be able to benefit from:
- FHA Loan—Issued by the Federal Housing Authority with smaller down payments and lower credit requirements
- FHA 203(k)—Allows first time home buyers in Indiana to include renovation funds for fixer-upper homes
- USDA Loan—Offered by the U.S. Department of Agriculture for homes in certain rural areas
- VA Loan—For active-duty military members, veterans, and surviving spouses
- Energy Efficient Mortgage—Designed to help first time home buyers in Indiana create an energy-efficient home
- Native American Direct Loan—A type of VA loan that helps Native American veterans purchase homes on federal trust lands
- Good Neighbor Next Door Program—Sponsored by HUD, this program provides aid for law enforcement officers, firefighters, emergency medical technicians, and teachers from pre-k through 12th grade
Conclusion – Additional Considerations for Indiana Mortgages
When searching for the best mortgages for first time home buyers in Indiana, keep in mind that there are a few additional pieces of information that are not disclosed in the early stages of researching Indiana mortgage rates.
If you have a good, great, or excellent credit history and you are seeking an Indiana first time home buyer loan totaling over $424,100, some lenders may be able to provide more favorable terms and rates.
For this reason, it’s important to confirm the specifics of any loan before committing to a mortgage program or down payment assistance in Indiana.
Additionally, it’s also important to keep in mind that APR and payment info often does not include state-specific taxes or required insurance premiums.
As such, first time homeowners in Indiana should expect that monthly mortgage payments will be greater after taxes and insurance products are added.
Mortgage Rate Table Disclaimer
Click here to read AdvisoryHQ’s disclaimer on the mortgage loan table(s) displayed on this page.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.