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First Time Home Buyer in IndianaIf you are looking to buy your 1st home, you've come to
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Today’s Rates for First Time Homebuyers in Indiana

Tuesday, October 17, 2017

Mortgage rates are at 4.11% for the 30 year fixed loan program and at 3.25% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 3.25%. Check out FHA and VA rates as well if you are doing low or no down payments.

Indiana First Time Home Buyer Checklist

  1. Know your loan program options. If you're moving to an eligible area, you may qualify for a zero down payment loan through USDA. Veterans may be eligible for VA loans, which do not require cash down. The content in the paragraphs below should give you an idea of where you may fall. 
  2. Get familiar with your credit score. Healthy or acceptable credit should sit somewhere above 600, but a few lenders take scores in the high 500s. If your credit score needs a boost, work on improving it before you try to take out a mortgage. Once annually, you're able to request a free credit report from the three major credit bureaus.
  3. Compare interest rates by asking different Indiana lenders for quotes. Choose one who not only provides a great offer, but carries a high rating from the Better Business Bureau.
  4. Get pre-approved. Once you've picked a lender, provide income documentation with your last two pay stubs and tax returns from the past two years. 
  5. Work out a budget. You could be pre-approved for a loan amount that is bigger than you had anticipated, but do not base affordability on the sum provided. Remember - pre-approvals are not guaranteed, and only you know what you can truly afford. 
  6. Find your home. While you're shopping, avoid making extravagant purchases, taking out new installment loans, or anything else that could weaken your financial standing and result in a loan denial.  

Low Down Payment Loans Through FHA

If you’re a first time home buyer without a lot to put down, an Indiana FHA loan may accommodate you. FHA loans are backed by the government and designed to help home buyers with limited upfront funds receive financing.

  • Down payment: 3.5%
  • Minimum acceptable credit score: 580 (varies)
  • Mortgage insurance: Upfront (1.75% loan amount) and monthly
  • Property guidelines apply and are verified via home inspection

You can find additional information about FHA loans on the Indiana page of the FHA website.

No Down Payment Loans Through USDA

The United States Department of Agriculture backs home loans for zero down to Indiana home buyers looking to move to or live in rural areas. Find out if your buying city is eligible by searching the USDA's property map. Note that popular areas like Indianapolis, Bloomington, Evansville and South Bend are not eligible. 

  • Down payment: None required; financing up to 102% available depending on home appraisal
  • Minimum acceptable credit score: 620
  • Mortgage insurance: Upfront (2% loan amount) and monthly
  • Income maximums apply 

Indiana Grant and Assistance Programs

The Indiana Housing and Community Development Authority (IHCDA) offers first time buyer home loans including down payment assistance to eligible borrowers for up to 4% the home sale price. The down payment is facilitated through a second mortgage which requires no payments, including interest. Unless the borrower refinances or sells the home, after two years the down payment funds are turned into home equity. Learn more about your eligibility.  

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user suit Lenders in: Indiana.

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