Home Manager Purchase Rehab
Buying a first home that needs a little TLC?
If you're a first-time homebuyer wanting to buy a house that needs a little improvement, but you wonder how to take the first step, our Home Manager Purchase Rehab Program may be your solution. It starts with an affordable Home Manager Mortgage,1 and provides additional tools you need to succeed as a new homeowner.
Your first step is a Home Manager Mortgage
- Minimum contribution of $1,000 of your own funds.2
- Lower monthly payment with no Private Mortgage Insurance (PMI) requirements.
- Fixed-rate mortgage with a set payment, making it easier for you to budget and keep track of spending.
- Seller can help pay closing costs and prepaid items.
- Special account called Home Manager Checking helps you save what you need for real estate taxes and homeowners insurance.3
Home Manager Purchase Rehab Program
Combined with the Home Manager Mortgage, our purchase rehab program provides these additional benefits:
- Purchase and renovate with one loan and one loan closing
- Maximum loan amount of $200,000
- 95% maximum loan to value based on the lesser of:
- appraised value “as improved” OR
- sum of the purchase price prior to renovation plus renovation costs, including, if applicable, costs for demolition
Help with the responsibilities of owning a home
The Home Manager Program helps you manage important financial aspects of home ownership by using the following two types of accounts:
Home Manager Account
This account helps you manage home-related expenses. A fixed portion of your income like your paycheck or Social Security is directly deposited into your Home Manager Account. Payments such as mortgage payments, utility bills and other home expenses are made automatically from your Home Manager Account, providing peace-of-mind.4
Old National Checking Account
The remainder of your income can be deposited into an Old National checking account, so you can pay the rest of your expenses such as groceries, clothing, car insurance and more. Use an Old National debit card5 or checks to pay for these expenses from your checking account.
Want to know more?
Please submit our information request form or contact your nearest Old National mortgage expert to learn more about the Home Manager Purchase Rehab Program.
How do you qualify for the Home Manager Purchase Rehab Mortgage?
This unique mortgage allows many low-to-moderate homebuyers the opportunity to turn that almost perfect house into the dream house they deserve. The following is a list of qualifications for Home Manager Mortgage candidates. Purchase and renovate with one loan and one closing.
To meet our Home Manager Mortgage guidelines, a home should:
- Be a single-family residence
- Be occupied by the owner
- Be within the bank footprint
- Be financed with a loan amount within program guidelines
- Undergo a home inspection6 and pest inspection7
To be eligible for a Home Manager Mortgage:
- Your household income must be 80% or less of the estimated median income for your area.8
- Your credit history should have no delinquencies for the last 12 months and should show no bankruptcies in the last four years. Non-traditional credit histories such as paid utility receipts and rent receipts are accepted.
- It’s suggested that you have saved one month’s mortgage payment, interest, taxes and insurance.
- Your mortgage payment, interest, taxes and insurance costs should be less than 31% of your total monthly income before taxes.
- Total monthly payments, including all housing costs and other monthly payments, should not exceed 41% of your total monthly income before taxes.
- Successfully complete a Home Buyer Education Program certified by the Department of Housing and Urban Development (HUD).
- Make a minimum contribution of $1,000 from your own funds toward the purchase of the home.
- Old National Home Manager Account comes with your Home Manager Mortgage.
Additional qualifications may apply. Home Manager Program available only for first-time homebuyers.
- Subject to credit approval. Property insurance required. Home Manager Mortgage requires an Old National Home Manager Account. $50 minimum deposit required. $25 fee assessed if account is closed within 180 days.
- All funds will be verified.
- First year’s insurance paid at closing.
- Some providers of home-related services may not provide an automatic payment option. Talk to the service provider for details.
- Subject to credit approval.
- Residence to be purchased using Home Manager Rehab financing must undergo a whole house inspection and pest inspection prior to closing, with any major repairs or safety items corrected by the seller prior to closing or within the rehab project as improved by portfolio underwriting.
- Seller will pay for treatment if required.
- Information regarding HUD median income can be found here.