Buy a Foreclosure With No Down Payment

The Indiana Housing & Community Development Authority (IHCDA) has come out with a new loan program for those who are interested in purchasing foreclosure HUD properties. You don't have to be a first time homebuyer either! The NSP (Neighborhood Stabilization Program) will be available starting on April 9th and basically offers assistance with the down payment, closing costs, the rehab costs or a combination of all three. There are different ways this program can be used as well- second mortgage, etc.

Here is a breakdown of the program:

• The DPA (down payment assistance) that you will be given is either 20% of the purchase price or $15,000, whichever is less (that is a lot of money!!!)


• Can be used with an FHA, VA, Conventional programs


• Must be an owner occupied property (so you can't do this for something you want to rent out)


• You have to take 8 hours of home ownership training (they do this so that people are fully aware of everything, and since they are giving you the down payment, it's probably worth it).


• Repairs by the contractors will be done before closing


• Homes that are 50 years and older may be up for 'historic review' (to make sure it's structurally sound and stuff)


• If you move in 5 years or less, you have to pay all of the down payment back. 6-10 years, it is pro-rated for 1/5 of the amount every year.


• Other requirements & information available.

There are also income limits to this program and other stipulations to qualify for the program. However, if you have had your eye on a home in great neighborhood that needs a little bit of tlc, or have thought about owning but nothing that "looks nice" is in your price range, this may be a great program for you.

1616 Yandes- 2BR/1BA & in Great Condition!

The list of homes that are available under this program is located at this website. I have a list of preferred lenders that you can talk to about this program or feel free to contact me with any other questions at rupton@c21scheetz.com if you are interested.

(There are other DPA & low interest rate programs for first time homebuyers for homes that don't need to be fixed up so feel free to contact me with any other questions)