Next Home (Indiana Housing) Loan

Our Next Home (Indiana Housing) Loan offers prospective and existing homeowners down payment assistance (DPA) on 30-year conforming loans. 

3.5% DPA on FHA loans (max. LTV is 96.5%)

3.0% DPA on Conventional loans (max. LTV is 97%)

DPA is forgiven in 2 years

No first-time homebuyer requirement (1)

No purchase price limits

Can be combined with the Mortgage Credit Certificate (MCC) benefit up to $2,000 federal tax credit per year (2)

Minimum credit score of 660 for FHA or 640 for Conventional loans

45% max DTI on FHA loans • Income limits apply

(1) A first-time homebuyer is someone who has not had ownership in their primary residence in the last 3 years.

(2) Can be combined with Mortgage Credit Certificate if home is located in a Targeted Area. Targeted Area is defined by the IHCDA as the following counties in Indiana: Daviess, Jackson, Jefferson, Knox, Lawrence, Perry, Pike, and Spencer, plus certain census tracts within: Clark, Floyd, Monroe, and Vanderburgh counties. Please contact us for more specific information regarding the tracts included in the “Targeted Area” definition for Clark, Floyd, Monroe, and Vanderburgh counties.

Subject to credit and underwriting approval.

Available in the German American Bank markets in Indiana only.

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