Homeownership Programs
- What is First Home?
- What is the Mortgage Credit Certificate?
- What is Next Home?
- What is Next Home with MCC?
- What is the next step in qualifying for one of these programs?
First Home
The First Home program offers qualified Hoosiers below market interest rate mortgages. This program can be used with conforming mortgage products, such as the FHA / VA or USDA Rural Development financing, all 30-year fixed terms.
The First Home program is for first-time homebuyers only, unless purchasing in a targeted county. For a list of targeted census tracts, please click here. For current interest rates, please contact a Participating Lender.
Mortgage Credit Certificate
The Mortgage Credit Certificate (MCC) program offers qualified Hoosiers a Federal Tax Credit. The tax credit amount ranges between 20% and 35% of the interest paid on a mortgage each year, depending on the mortgage loan amount. The tax credit can be claimed each year, through the life of the mortgage, as long as the home remains the borrowers principal place of residence. The maximum credit per year is $2,000.
The MCC program is for first-time homebuyers only, unless purchasing in a targeted county. For a list of targeted census tracts, please click here.
MCC Video (English)
MCC Video (Spanish)
MCC Re-Issuance
Are you already a MCC certificate holder and want to refinance or have refinanced? Return the MCC Re-Issuance Affidavit along with items listed on form to continue the benefit of your tax credit.Next Home
Next Home offers prospective homeowners who do not qualify as first-time homebuyer’s as well as first-time homebuyer's, down payment assistance of 4%. Under Next Home, there are no purchase price limits which allows more Hoosiers to qualify for this great program. For current interest rates, please contact a Participating Lender.
Details of Next Home include:
Next Home with MCC Combo
IHCDA is pleased to announce our newest program! If you are attracted to the tax benefit of the MCC program and the down payment assistance of the Next Home program, then this combo program might be the best option for you! Unlike the Next Home program, you must be a first-time homebuyer to use this combo but otherwise you pair all of the MCC benefits with those of the Next Home program. For current interest rates, please contact a Participating Lender.
Details of Next Home with MCC combo include:
- Must be a first-time homebuyer or have not had ownership in your primary residence in the past three years, unless purchasing in a targeted county
- Purchase Price limits apply
- MCC provides a 20-35% tax credit, not to exceed $2,000, of your mortgage interest expense each year the property is your primary residence.
- 4% down payment assistance (DPA) based on the purchase price and can also be applied to closing costs and/or prepaid items at closing
- DPA is fully forgiven after 2 years if you remain the primary resident in the home
- DPA has zero interest with no monthly payments
- Federal Housing Administration (FHA) loans only
- Minimum credit score of 650
- Loan must be originated through an IHCDA Participating Lender
Next Steps To Qualifying
Each program offered by IHCDA is required to be attached to a first mortgage product. IHCDA does not credit underwrite and it will be the determination of the participating lender on your ability of afford a home through your income, job stability and credit. For additional information, the Homeownership Department's programs brochure can be downloaded here or visit the frequently asked questions section.
Ready to get started? Please review our Participating Lenders & Program Income Limits section to learn what income limits apply to your area and to find a lender in your county that can help you with your financing needs, simply inform them upon your initial contact which IHCDA program you are interested in.
Contact IHCDA if you have more questions.
