[r85] Rep. Pond Column (4/20/2009)

Monday, April 20, 2009

Start Date: 4/20/2009 All Day
End Date: 4/20/2009
The United State's housing market is very bad right now. Not many people have money to buy a house and not many banks are loaning money. However, Indiana has a new plan that allows Hoosiers to purchase a home during these rough economic times.


The Indiana Housing and Community Development Authority is offering zero-interest, non-amortizing loans of up to $25,000 that will allow Hoosiers to buy a foreclosed home for their primary residence. This program is directed to help Hoosier homebuyers at or below 120 percent of the area's median income.


Those who qualify will be eligible for a $15,000 loan from IHCDA's Market Stabilization Fund; the Federal Home Loan Bank would match up to $10,000.  That $25,000 can be used as a down payment, closing costs and rehabilitation of a foreclosed home.


There are some stipulations:


  • Homebuyers may use this money for closing costs and down payment assistance in buying a foreclosed home or residential property. The property must be used as the primary residence.


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


  • This money does not have to be repaid so long as home buyers use the home as a primary residence for at least 10 years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 through year 10, the homebuyer will retain 20 percent in equity of the award amount per year.


All who qualify for this assistance must participate in an eight-hour homeowner educational course taught by an IHCDA certified counselor.


These loans are made possible by the United States Department of Housing and Urban Development Neighborhood Development Program. This program gave $84 million to the IHCDA. The state will be using $33 million for the Market Stabilization Fund.


This is not the only loan program available to help purchase a home. In conjunction with this loan, people may also use other government assistance programs.


Fannie Mae and Freddie Mac are working with the IHCDA to create a detailed database of foreclosed homes in the state.


For more information on the Indiana Housing and Community Development Authority, call 317-232-7777 or go online to www.ihcda.in.gov. By the end of the month, there will be a map on the Web site to view foreclosed homes for sale.