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.


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