Dispelling the Myths About Credit Barriers That Keep You From Buying A Home

Indy Style

What’s going on in the Indianapolis housing market? And what do you need to do to be prepared to buy a home?

INHP’s Rob Evans, explains how you can make the big purchase – even with credit barriers and student loan debt or lack of a down payment. What does this mean? Here’s a glimpse:

  1. Qualify for a home loan, even if you have credit card debt or student loans
  2. Access down payment assistance or purchase a home with as little as 0 to 3% down
  3. And pay off your home in 20 years.

INHP is a trusted resource on affordable homeownership that has helped more than 37,000 clients throughout our 31-year history.

What’s going on in the Indianapolis housing market?
• INHP and partners have reviewed the data

• One of INHP’s partners – MIBOR – recently reported that since January 2014, Marion County homes actively listed to sell between $75,000-$140,000 have dropped nearly 80%.

• The reason that price range is important is that’s a range that many of our Indianapolis community members can afford.

• With fewer listing in the affordable home price range for many Indianapolis area buyers, working families have fewer choices of where to live.

• And, when a home does hit the market, buyers must move very quickly to place an offer, which can make it difficult for someone to buy a home if their finances aren’t prepared or they aren’t already prequalified for a mortgage.

So how do you get prepared to own a home in this competitive market? What if you’ve got some credit barriers, credit card or student loan debt, or you haven’t saved for a down payment?

• That’s where INHP’s programs and services can help potential homebuyers understand what it takes to own a home and prepare their finances to be ready to purchase in such a hot housing market.

• If you’re looking for motivation or tips on how to manage your daily finances, increase your savings or credit score, INHP.org can help. We offer online and in-person classes, many of which are free.

• INHP also has a staff of certified counselors who can create a goal plan to work on your finances and focus on saving for a down payment. Most of our clients get through the program in about eight months.

How do you qualify for down payment assistance and purchase a home with as little as 0 to 3% down?

• For many homebuyers, the most intimidating part of their homeownership journey is saving money for a down payment.

• Many mortgage lenders have special programs that offer down payment assistance. To get the assistance, a homebuyer must be able to qualify for a home loan.

• That means that a lender will review a homebuyer’s credit score, the amount of debt compared to their take-home pay, the amount of money they have in savings, their employment history and more.

• INHP provides at least $7,500 in down payment assistance for those who qualify. To qualify, a potential homebuyer would need to be 80% or less of area median income. Area Median Income is determined by our government in Washington.

• In simpler terms, if a homebuyer’s household income from all sources is about $60,000 a year, and they have a spouse and a couple of children who live at home, they could qualify for at least $7,500 in down payment assistance from INHP.

• Go to INHP.org to get started. After you submit an online form, an INHP staff member will be notified to contact you directly.

Are there any other ways INHP is making owning a home affordable for Indianapolis families?

• In addition to offering classes and personalized advising services, plus the down payment assistance options, INHP has affordable mortgage programs
o Our programs feature fixed rates, no PMI, and low down payments, depending on the mortgage you qualify for

• One of our mortgage programs, called the Mortgage Accelerator, provides a way for a homebuyer to pay off their home in 20 years, using the same rate as if it were a traditional 30-year mortgage.

• We’re also working with our community partners to build more affordable homes in many Indianapolis neighborhoods.

• You can see those homes for sale and more at INHP.org.

SEGMENT IS SPONSORED BY INHP

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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