Its funny that this Market Stabilization program offered through the Indiana Housing and Community Development Authority has been around for almost nine months, yet I see it not being used often by buyers of foreclosed homes. It could be the limits of the geopgraphic areas (rather large actually) or the requirement you stay in the home for 10 years to receive forgiveness of the $15k. The $15k can be used for a downpayment, closing costs or rehab, but with a low downpayment loan to purchase the home of 5% or less, the $15k makes sense to use for rehab. One other requirement-the home needs to be a foreclosure.
The money is granted via a second mortgage on the home that is forgiveable, after 10 years. A refinance of the first mortgage is going to cause problems for this second so you want to lock in today’s low rates with this program.
The process of learning if a home is eligible is simple. Go to this page and enter the address of the home you are considering. The other significant qualification issue is income eligibility. The limits seem generous enough..in Marion County a five member family with income under $84,360 will qualify You also have to work with a participating lender and the Indiana Housing and State of Indiana website indicate you have to check with Indiana Housing to find one.
A worthwhile program to consider for you or your buyers interested in foreclosed homes..
Tags: Financing, Foreclosures, Indiana Housing, REO
