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1. I am interested in participating in one of the IHCDA homeownership programs but I am not sure my credit score is acceptable. What are IHCDA's credit guidelines?
The only credit guideline IHCDA has in place is what the borrower's minimum credit score must be in order for the lender to submit an eligible loan to IHCDA. For First Home, the credit score is a minimum of 640. For Next Home, the credit score is a minimum of 650. IHCDA does not credit underwrite and it will be the determination of the participating lender on your ability to afford a home through your income, job stability and credit.
If you have credit issues and are looking to receive credit counseling, please visit HUD for a list of certified counselors in your area.
2. What are the programs Acquisition and Income Limits? How do I read the spreadsheet?
20xx Acquisition & Income Limits - Locate the county you are anticipating residing in. To the left of the horizontal dotted line, you can find the acquisition and income (depending on family size) limits for the MCC & First Home (Rate Only) programs. To the right of the horizontal dotted line, you can find the acquisition and income (depending on family size) limits for the First Home Plus program. **UPDATE** The First Home Plus program currently is closed.
20xx Next Home Income Limits - Locate the county you are anticipating residing in. To the right of the horizontal dotted line, you can find the income limits (depending on family size) for the Next Home program. An acquisition limits listed for each county on the Next Home spreadsheet, however at this time Next Home does not have any acquisition limit restrictions.
Regardless of the program you choose, the purchase price of your home cannot exceed the acquisition limit and the total household income, including anyone over the age of 18, cannot exceed the income limit.
The list of limits can be found here.
3. What types of income would be used when trying to qualify for an IHCDA program?
A lender might only consider a borrower's W-2 income to qualify for a mortgage. However, IHCDA underwriters must look at all type of income coming into the household from all working individuals over the age of 18. Examples of the different sources of income IHCDA reviews are W-2 wages (full-time & part-time), shift differentials, overtime, bonus pay, gain shares, seasonal income, child support/alimony, tips, social security, IRA/pensions and interest. Other forms of income may apply.
IHCDA calculates current gross income annualized over a 12-month period to arrive at an annual figure. If you have a question regarding the type of income you receive and how it would be counted, please ask the participating lender of your choice.
4. Should I obtain a home inspection?
5. I received down payment assistance through an IHCDA program and am looking to now refinance or sell my home. What are my affordability stipulations and how can I request a payoff quote?
Depending on the program you obtained a 2nd mortgage through will determine your affordability period. Please review your IHCDA loan documents or contact IHCDA to discuss the stipulations of your loan.
At this time, IHCDA does not subordinate. Refinancing or selling your mortgage will trigger a payoff due to IHCDA, if you are still within your affordability period. Obtaining an actual payoff amount can be done through your title company and/or lender who is assisting you in refinancing or selling your home.
6. My MCC loan has closed but I have not yet received my MCC Certificate. How do I obtain the certificate?
First, you will need to check with your lender to determine if the loan closed correctly with IHCDA and a certificate was eligible to be issued. If a certificate was issued, IHCDA also provides your lender with a copy. If the lender cannot produce you a copy of your certificate, your next course of action would be to contact IHCDA to obtain a copy. At that time, IHCDA would mail one out to you.
7. I have recently refinanced my MCC Certificate and would like to continue my benefit of the tax credit. How do I reissue my MCC?
Click here and visit the Mortgage Credit Certificate section to download the MCC Re-Issuance Affidavit. Fully complete the affidavit and mail IHCDA the affidavit, required documentation and the fee of a quarter percent (.25%) of the refinanced loan amount to reissue the MCC certificate. Please note IHCDA does not accept personal checks. Once all information is received a reissued certificate will be mailed out to you within 2-3 weeks.
8. My lender stated I had to obtain homeownership education counseling in order to participate in IHCDA's programs. Where do I register for counseling and how much does it cost?
For the majority of IHCDA's programs homebuyer education is required, especially if you are a first-time homebuyer. It is IHCDA's goal to ensure each homebuyer is well prepared in understanding and taking on the responsibility of becoming a homeowner. IHCDA has an online training course, known as IHCDA U, for our potential homebuyers free of charge. Each borrower on the loan must sit down and take the entire course in order to qualify for our programs. At the end of the course a certificate, with your name on it, will be presented to you to be provided to your lender. To register for the course, please click here and visit the "Self-Registration" tab.
9. How do I obtain my certificate from IHCDA U once I have completed the online homebuyer education course?
10. My loan was terminated with IHCDA and it was explained to me that I should receive a refund from the reservation fee paid. How do I check status or obtain my refund?