Up To $25,000 to Buy A Foreclosed Property

Indianapolis - Help to get Hoosiers into homes was announced Wednesday at the Statehouse.

You may qualify for up to $25,000 for free, but there are some conditions.

You have to buy a foreclosed home. If you live in that home for 10 years, you don't have to pay the loan back. If you sell or refinance the home during the decade, you have to pay all or a portion of the loan.The state is offering a loan up to $15,000 for closing costs or home improvements.

The Federal Home Loan Bank of Indianapolis has committed to matching loans up to $10,000. How the Market Stabilization Program Works: ·

IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist homebuyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.

· These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.

· Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence.

· To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.

· Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000. These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the homebuyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the homebuyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the homebuyer will retain 20% in equity of the award amount per year.

· This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves.Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor.

· IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized website. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines.

Site will be live by the end of April.A downloadable brochure for consumers is available on IHCDA's web site.

For additional information - E-mail Tony Wilson at: tonywilson@callcarpenter.com

www.WilsonRealtors.Net

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