FHA Loans in Indianapolis
Wouldn’t it be amazing if you could move into a new home with just 3.5% down? With a government-backed FHA loan in Indianapolis, it is possible. FHA loans are aimed mostly at first-time homebuyers in Indianapolis, but they can be used by repeat homebuyers as well, so long as the qualifications are met.
What is an Indianapolis FHA Loan?
An FHA loan is insured by the Federal Housing Administration (FHA). This makes them less risky for lenders. As a result, the loans tend to have lower interest rates and friendly terms.
With an FHA loan in Indianapolis, buyers can enjoy the following benefits:
- Low down payment.
- Competitive interest rates.
- Low or no closing costs. In some cases, closing costs may be rolled into the loan or even paid by the seller or the lender. In 2015, Grandview’s clients had over $325,000 of closing costs paid by the lender.
- Easier to qualify, even with a credit score which is less than ideal.
Both fixed and adjustable rate FHA loans are available. With multiple loan terms offered, you can choose a payment schedule which works for your financial needs.
You can use an FHA loan to:
- Buy a home.
- Construct a home.
- Get a cash-out or streamline refinance on an existing mortgage.
- Consolidate your debts.
- Renovate a home using an FHA 203K loan.
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We Work with You to Minimize Your Costs and Maximize Your FHA Loan Benefits
In conjunction with FHA loans, we offer a couple of special programs to help reduce your interest rates and overall loan costs while offering you the most favorable terms available:
- Sapphire Program: The National Homebuyers Fund (NHF) Sapphire Program helps with down payments and closing costs. Sapphire can be used with FHA, VA and USDA loans, and supplies a grant equal to 4.5% of the amount of the loan. Like FHA, it is aimed at but not limited to first time homebuyers. As it is a grant and not a loan, there is no requirement for it to be repaid.
- HUD Good Neighbor Program: This special program through the U.S. Department of Housing and Urban Development (HUD) is open to homebuyers who work in specific occupations: EMTs, firefighters, law-enforcement officers, and K-12 teachers. If you work in one of these professions and wish to purchase a HUD-foreclosed home in a revitalization area, you can qualify for a 50% discount on the home’s listing price.
Do You Qualify for an Indianapolis FHA Loan?
Remember, you do not need to be a first-time homebuyer to qualify for an FHA loan. You do need to meet the following eligibility requirements:
- A credit score of 580 or higher is needed to qualify for a low down payment. Homebuyers whose credit scores fall between 500-579 may still be eligible, but the down payment might be higher. If you need help raising your credit score, we can work with you.
- There are no strict income requirements, but your debt-to-income ratio should be no higher than 43-45%. In some cases with compensating factors, debt ratios can be as high as 55%. You should also be able to demonstrate that you have been employed steadily for at least two years.
- You can qualify for an FHA loan even if you have been foreclosed on or declared bankruptcy, but the bankruptcy must be at least two years behind you. You must not have had a foreclosure within the past three years.
- The property you are purchasing must be intended as your new primary residence.
- Your credit alert interactive voice response system (CAIVRS) report must be clear.
We Can Help You Get an FHA Loan in Indianapolis, Indiana
Many first-time homebuyers are not aware of the existence of FHA loans, and many repeat buyers have no idea that they might qualify. Those who do can save a lot of money on home purchase, construction, renovation or refinancing.
If you are not sure whether you qualify for an Indianapolis FHA loan, Grandview Lending can help you determine your eligibility. If you qualify, we will help you apply. If you do not, we will find you another affordable Indianapolis home loan program which is a fit for your needs.
We are a local family-owned company, and there is nothing we take more pride in than helping local individuals and families move into their new homes quickly and affordably.
We are paid by the lender, which means we do not charge points upfront. We are available every day of the week (including weekends) to work with you.