Getting an IHDA Loan

Getting an IHDA Loan

Buying your first home can be an exciting and intimidating process. With the SmartMove loan, IHDA strives to make the process as streamlined as possible so you can achieve your goal of homeownership.

For an overview of the program and the necessary steps to obtain a SmartMove loan, please see below.

Program Overview

The SmartMove program is designed for qualified buyers who have limited funds for down payment and/or closing costs. The program has several features:

  • A first mortgage with an affordable interest rate. See the current rates.
  • A second mortgage up to $6,000 for down payment and/or closing cost assistance
  • Variety of loan products including FHA, VA, USDA and conventional loans.

Programs steps and process

Step One: Determine if you meet the program qualifications
The SmartMove program qualifications are:

  1. You must be a first-time homebuyer. A first-time homebuyer is defined as someone who hasn’t owned a primary residence within the last three years. Exemptions to the first-time homebuyer requirement:
    • Veterans: If you are a veteran, both you and your spouse do not have to be first-time homebuyers.
    • Targeted Area: Homebuyers purchasing a home in targeted areas of the state are exempt from the first-time homebuyer requirement. Please review the listing of targeted areas.
  2. Your total household income and the purchase price of your home must be under the program limits. Please review income and purchase price limits.

Step Two: Visit a participating lender

After you have determined that you qualify for the program, contact one of our participating lenders.

The lender will tell you what documentation is required, and verify whether you qualify for the loan based on the above parameters. Additionally, they will qualify you from a credit standpoint. After all information is received, a pre-approval letter will be issued to inform you of the loan amount for which you qualify.

Step Three: Look for a home
Once you are pre-approved for a loan, you can start looking for a new home.

Once you find a property and sign a contract, the lender will compile a loan package for final review and approval. The information will be reviewed by IHDA staff, as well as by your lender. The average time to complete this process is 30-45 days.

After your loan package is approved, you will close (transfer of the property to you from the seller). Congratulations – you are now a homeowner!

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