Program Highlights: This program offers 30-year fixed-rate mortgage products with below market interest rates. Borrowers must be first-time buyers (except in targeted areas*), with income and purchase price not exceeding specified limits. Underwriting standards are standard conventional “affordable housing” standards as published by the major Private Mortgage Insurance (PMI) companies and Fannie Mae /Freddie Mac.

Loans are reserved with IHDA and the interest rate is “locked” at the time of reservation. The lock on existing construction is good for 90 days at no additional charge. A 270 day rate lock may be purchased for 1% of the loan. During the 270 day period, the borrower has a one time rate change.

Application to Participate: In order to become a participating lender, originators must complete the application request form included within this web site. The application consists of a contract, fact sheet and general information about the lender’s operations. IHDA also requires new lenders to attend a training session conducted by IHDA, prior to reserving loans. A list of training session dates also can be found within the Lender’s Section of IHDA’s Web site.

Expiration Date: Rates are not being quoted at this present time.

*A Targeted Area is a census tract in which 70 percent of the people living there have household incomes below 80 percent of the median. (This evaluation is based upon the data collected from the census conducted in the year 2000).