*** As mentioned in this post, this was a LIMITED TIME program, and that limited time has passed. This program is no longer available***
The Indiana Housing Neighborhood Stabilization Program is offering an amazing incentive for people who buy foreclosed properties. The owner must occupy the home, but they do NOT have to be a first time buyer to take advantage of this program. Unlike the $8000 tax credit for first time buyers, the money can be used towards your down payment, and you do not need to wait to get it until you file your taxes.
Here are some more highlights:
- Up to $15,000 (up to the maximum of 20% of purchase price) which can be used for your down payment, closing costs, prepaids, and/or repairs.
- Does NOT have to be a first time buyer
- Does NOT need to be repaid if you live in the home for 10 years. If you live in the home for under 5 years, you must pay it all back, but the amount you must repay decreases from years 6-9 by 20% each year.
- Only homes that have been foreclosed on qualify (HUD, REO, Bank-owned, etc.) NOT homes that are short sales or pre-foreclosure
- There are income limits, but they are pretty generous.
- Buyers can still claim the $8,000 tax credit if they qualify for it. (MORE FREE MONEY!)
- Can be used with any loan type (FHA, Conventional, USDA, Indiana Housing)
- Can be used with the MCC (Mortgage Credit Certificate) program for 1st time buyers
- If the money is used for repairs, they can’t be cosmetic things, they need to be repairs called for by the inspector or appraiser.
- Not all areas or all homes will be eligible. You need to check the address of the property on the Indiana Housing website, and it also must meet all other criteria.
- Buyer must attend an 8 HOUR face to face training class
This part can be tricky: When purchasing the home, the buyer must get it for 10% LESS than the sales price or approved value, whichever is lower. This builds in some equity for the buyer. A house priced at $100,000 would have to sell for $90,000 or 90% of appraised value, whichever is less.
This is a Limited Time program, if you are interested or have questions, call me and I can help!
This is an amazing deal. For example, tonight I showed a listing that was priced at about $65,000 and it was a bank-owned. I checked the website to see that it is eligible, and the buyers happened to be first-time buyers. With this new program, they would get $13,000. PLUS they would get a tax credit of $6500 (which is 10% of the sales price). So, in total they would get $19,500 for buying a $65,000 house.
On a house that costs $100,000, you could get the full $15,000 plus the full $8000 for a total incentive of $23,000 of money that DOES NOT need to be repaid. Simply Amazing.
CALL ME TODAY before these programs end!!