First Time Homebuyers
Buying your first home can be an exciting but daunting process. Luckily, your community bank is ready to help you through every step of the process – from pre-approval all the way to the closing table. There are a lot of ways to finance your first home, and we can educate you on the advantages and disadvantages of each so you can make the best decision possible. In addition to traditional funding options, State Bank partners with the Federal Home Loan Bank of Indianapolis to offer first-time homebuyer grants.
- Down payment as low as 3%*
- Part of your down payment may be a gift*
- May be eligible for a fully forgivable grant (see below)
Did you know? A first-time home buyer is defined as anyone that has not owned his/her own home in the past 3 years.
Homeownership Opportunity Program (HOP)
The HOP grant from Federal Home Loan Bank of Indianapolis helps first-time homebuyers with down payment and closing cost assistance**. Funds are available on a first-come, first served basis, and the funding is announced each spring. We work directly with first-time homebuyers to help individuals meet the program requirements. Grant funds received through HOP are forgivable after 5 years.
To qualify for a HOP grant you must:
- Be a first-time homebuyer at or below 80% local area median income
- Purchase a single-family home, condominium, duplex, or modular unit
- Contribute a minimum of $1,000 towards the purchase of the home
- Complete a required state, HUD, or approved homebuyer counseling course (up to $150 of HOP funds can be used to cover the cost of counseling)
- Total housing debt can not to exceed 35% of total household gross income
*All loans are subject to credit approval. Ask your State Bank mortgage loan originator for details on rates and fees for mortgage loan options. **Grants based on availability of funds through Federal Home Loan Bank programs. Certain restrictions apply. Contact us for more information. Equal Housing Lender.