First Internet Bank has the unfortunate situation of sounding like a complete scam of a bank.
Fortunately, they aren’t. Because the offer a completely legitimate program that is perfect for a first time buyer.
Here’s the breakdown:
$1000 Down. That’s it.
No Private Mortgage Insurance (PMI).
Below average interest rate on the loan. It’s November of 2022 and we are sitting at 6.5% APR, but with HomeFirst you’d likely be in the 5’s.
Meaning, you’ll get a great home loan, for only $1000. The maximum home price allowed with this product is $315,000. Now, of course you need qualifying income to make the Debt-to-income requirements for the monthly payment, but still.
Now, I know what you’re thinking. What’s the catch here.
The catch:
To qualify, you must make under $73,500 per year. Additionally, the property must be located in a Low to Moderate Income Tract area. However, many awesome places near Downtown are. For example, I’ve had people use this product moving to Fountain Square, near Northside, or South Broad Ripple, which are great places to live!
To figure out if a property you like does qualify – use this link. You just type in the property address, then look at the 2022 Census data to see if it is in a Low to Moderate Income Tract.
Lastly, the changed the terms to state that the borrower must have no other debt! No student loans, no car loans, no credit card debt.
To recap:
HomeFirst is a program that allows you to get a great loan on a property up to $315,000, for $1000 down.
To qualify you must make under $73,500 / year. You also must be buying a property in a Low to Moderate Income Tract. Lastly, you must have no other personal debt.
How is First Internet Bank able to do this?
They keep the loan on their books. Rather than selling to the government-sponsored FreddieMac or FannieMae, they keep the loan in house. This means they set the rules. And for whatever reason, these rules work for them. And it’s amazing! This product can potentially change someone’s life forever! Equity paydown and appreciation at your fingertips for a lot less.
Next steps:
Reach out to Tyler. He can put you in touch with the loan officer that does this product.
