Indiana’s housing market is getting a boost in 2025 with a new state initiative designed to make homeownership more affordable. House Bill 1035, effective July 1, 2025, introduces a state income tax credit of up to $2,500 for first-time homebuyers purchasing a primary residence. As a leading mortgage broker in Crown Point, IN, Wells Funding Group is here to help you leverage this tax credit and secure the best mortgage for your Lake County home, whether near Crown Point’s historic Square or its serene suburbs.
What Is House Bill 1035’s Tax Credit?
House Bill 1035, passed by the Indiana General Assembly, offers a non-refundable tax credit of 20% of mortgage interest paid in the first year, up to $2,500, for first-time buyers (Indiana General Assembly, 2025). With Lake County’s median home price at $280,000 in 2025, per the Indiana Association of Realtors, this credit eases financial pressure for buyers in Crown Point’s competitive market.
Key features include:
- Eligibility: First-time buyers purchasing a primary residence under $350,000.
- Tax Savings: Up to $2,500 based on first-year mortgage interest.
- Stackable Benefits: Can be combined with Indiana Housing programs for down payment assistance.
Wells Funding Group helps you maximize this credit while finding loans from top mortgage lenders.
Why Choose a Mortgage Broker in Crown Point, IN?
A mortgage broker like Wells Funding Group compares rates from multiple mortgage lenders, offering better options than a single lender. Our Crown Point team specializes in:
- Tax Credit Guidance: Ensuring you qualify and apply the HB 1035 credit correctly.
- Loan Variety: FHA, VA, and conventional loans tailored to first-time buyers.
- Local Expertise: Navigating Crown Point’s market, from homes by Deep River County Park to condos near Bulmer Park.
For example, a Crown Point couple we assisted used the $2,500 credit to offset closing costs, securing a 6% FHA loan for a $270,000 home.
Who Qualifies for the Tax Credit?
Eligibility is straightforward:
- First-Time Buyers: No homeownership in the past three years.
- Income Limits: Household income under $120,000 for singles or $180,000 for couples.
- Home Price Cap: Primary residence valued at $350,000 or less.
Our team can confirm your eligibility and align the credit with your mortgage plan.
How HB 1035 Impacts Crown Point Buyers
Crown Point’s market is vibrant, with homes selling in about 60 days in 2025, per local trends. The tax credit reduces your first-year costs, making it easier to buy near Crown Point’s tech corridor or Lemon Lake. For a $280,000 home at 6%, the credit could cover half your first-year interest, freeing up funds for home upgrades or savings.
Local benefits:
- Affordability for young professionals in Crown Point’s downtown.
- Support for veterans pairing VA loans with the credit.
- Increased buyer confidence in Lake County’s steady market.
Common Questions About the Tax Credit
Inspired by Google’s People Also Ask, here are answers to top questions:
- How do I claim the tax credit?
- File it with your Indiana state tax return, with guidance from your broker or tax professional.
- Can I use it with other programs?
- Yes, it stacks with Indiana Housing grants for down payment help.
- Is the credit refundable?
- No, it reduces your tax liability but doesn’t provide a cash refund.
Tips to Maximize Your Savings in Crown Point
To make the most of HB 1035:
- Apply Early: Ensure your purchase qualifies before tax season.
- Work with a Broker: A mortgage broker pairs the credit with low-rate loans.
- Check Indiana Housing: Combine the credit with down payment grants for bigger savings.
- Plan Your Budget: Use the credit to offset closing costs or build savings.
Why Act Now in Crown Point’s Market?
Crown Point’s 2025 market offers increased inventory and stable prices, ideal for first-time buyers. The tax credit, paired with 6% rates, makes now a great time to buy near Crown Point’s historic courthouse or family-friendly neighborhoods. Don’t wait for market shifts to act.
Get Started with Wells Funding Group
Ready to buy your first home in Crown Point? Wells Funding Group’s expert team will guide you through Indiana’s new tax credit and find the perfect mortgage. Visit our Google Business Profile to schedule a free consultation and start your homebuying journey today.
About Wells Funding Group
Wells Funding Group, based in Crown Point, IN, is a premier mortgage broker serving Lake County and Indiana. Specializing in FHA, VA, and first-time homebuyer loans, we provide personalized guidance to secure your dream home. Company NMLS: #12007. Contact us at (219) 230-8400 or dennis@wellsfundinggroup.com.
Indiana General Assembly. (2025). House Bill 1035. https://iga.in.gov/legislative/2025/bills/house/1035
Indiana Association of Realtors. (2025). Market statistics. https://www.indianarealtors.com/