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How To Claim A Credit Of $15,000 (Or $23,000!) On The Purchase Of A New Home

The Indiana Housing & Community Development Authority (IHCDA) has rolled out a new program designed to help facilitate the sale of foreclosed properties in Indiana. The program is funded by money that Indiana received from the Federal Government as part of the stimulus package. You may be eligible to receive a $15,000 grant from the State if you purchase a foreclosed property that is deemed to be in “an area of greatest need” by HUD. This means you can purchase the home with no money out of pocket!

This credit may be used for:

1) Down Payment Assistance

2) Closing Costs, Points, and Pre-paid Items

3) Repairs

Here are some key points on this program:

1) Property must be a foreclosed property.

2) Must be located in an eligible area. Check here for eligible properties: http://indianahousingnow.org/ProgramGISLookup.html

3) There are income limitations on this program. Check here for income limits based on family size. http://www.in.gov/ihcda/files/MSP_STAND-ALONE_INCOME_LIMITS.pdf

4) Bank must sell you the property at a 10% discount. Sales price cannot exceed 90% of the appraised value.

5) The credit is forgiven after 10 years and partially forgiven in years 6-9.

6) Property residence only.

7) Buyer does not have to be a first time homebuyer.

If you are a first time homebuyer (meaning you have not owned a primary residence in the past 3 years), you may also receive the $8,000 Federal Tax Credit for first time buyers, if you close before December 1^st of 2009. You can find details of the $8,000 credit here: http://www.indymortgagesource.com/$8,000housingtaxcredit

Between these two programs, you have the opportunity to take advantage of free money from $8,000 to $23,000 for the government. That coupled with the historical low interest rates and extraordinarily low home prices, make this perhaps the best time ever to purchase a new home! Call me for further details on these programs and to begin the search for your new home today!

Steve Jackson
Mortgage Consultant
317-863-2092
Fax: 317-536-9643
steve@dilgerfg.com
www.indymortgagesource.com