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Next Horizon Mortgage

Dreaming of buying a home?

First Merchants Bank is here to help and will support you all along the way!

The First Merchants Next Horizon Mortgage offers you affordable homeownership.

  • Up to 100% financing
  • Lower monthly payment – no private mortgage insurance required
  • Credit score of 600 or above
  • Rent and utility payments considered as alternative credit sources
  • Up to $7,500 Community Home Grant to cover closing costs, down payment funds or principal reduction for qualified applicants1

CONTACT A COMMUNITY HOME LENDER

More accessible loan terms

You may find it easier to qualify for a First Merchants Next Horizon Mortgage than a traditional mortgage. We support non-traditional methods of credit history documentation such as rent verification, insurance payments, mobile phone payments and others.

Lower monthly payments

Since private mortgage insurance (PMI) is not required for a First Merchants Next Horizon Mortgage, you avoid this expense. PMI is commonly required for traditional mortgages when making a down payment of less than 20%.

Down payment assistance

First Merchants is proud to offer up to $7,500 in grant funds to help with down payment and closing costs for qualifying borrowers. Applicants who purchase their home in a qualifying geographic area and/or meet certain income and other eligibility requirements may qualify1. To view general maps of qualifying geographic areas, please see the ‘grant qualification maps’ below.

Grant qualification maps

Wondering if the home you are buying is located in a geographic area that could qualify for a grant? Use the tabs below to search by State and County. Please note that maps should not be solely relied upon to determine eligibility. To determine if you qualify, contact a Community Home Lending Officer.



Eligibility Requirements and important information

 

  • Eligible for first-time home buyers and those looking to refinance, across the First Merchants footprint.
  • May be eligible for repeat home buyers in certain areas.
  • FICO scores starting at 600 with 12 months of on-time payments (medical collections excluded).
  • Home buyer counseling required.2
  • Subject to all underwriting requirements and credit approval.
  • Total debt to income ≤ 47%.
  • Full interior and exterior appraisal required.
  • 24 months of continuous employment.
  • Homeowners insurance and escrows required.
  • Gift funds are allowed from borrower's relative, employer, guardian, charitable organization, government or public program for homeownership.
  • You may have out-of-pocket closing costs.

Your Community Home Lending Officer can help determine if a Next Horizon loan is right for you.  Take the first step and contact us.

1Eligibility requirements apply. First Merchants Down Payment Assistance Grants may be available for purchases in specific areas and/or for applicants meeting certain income and other eligibility guidelines. If eligible, grant amount may vary based on applicant qualifications. Grant funds will be used for any loan-associated cost appearing on the Closing Disclosure and down payment funds. Any excess funds will be applied as a principal reduction. No cash back at closing. To receive grant funds, you must provide a Certificate of Completion for “Home Buyer Course.” This course is available free of charge. May not be combined with other grants or closing cost programs. First Merchants grant guidelines apply. Grant funding is limited, available on a first-come, first-served basis. Eligible applicants include first time home buyers (you’ve never owned a home), applicants who have not owned a home in the last two years, or applicants who have been displaced from a marital residence due to divorce (you’ll need a recorded Quit Claim Deed). FICO Scores as low as 600 with 12 months of on-time payments (medical collections excluded). Subject to all underwriting requirements and credit approval. Income restrictions may apply. See a Community Home Lending Officer for full details.

Pest and whole house inspections are required. This mortgage is limited to single-family residences only. Condominiums and manufactured housing are not eligible. You must use the property financed as your primary residence. You may have out-of-pocket closing costs. Property insurance and escrows required. Gift funds are allowed, must be from immediate family.

2See a Community Home Lending Officer for additional information. Subject to credit approval.