Bloomington Down Payment & Closing Cost Assistance Program

Bloomington Down Payment & Closing Cost Assistance Program is a forgivable loan for homebuyers in Bloomington, Indiana, administered by City of Bloomington Housing and Neighborhood Development (HAND). HAND's Down Payment and Closing Cost Assistance program provides up to $10,000 to eligible first-time homebuyers in the City of Bloomington as a forgivable second mortgage. The lien forgives at 20% per year and is fully forgiven after 5 years of owner-occupancy. Applicants must complete the HAND Homebuyers Club class and be at or below 80% AMI. Up to $10,000 toward down payment and closing costs. Forgivable 0% second mortgage. Forgives 20% per year over 5 years. No prepayment penalty. Funding comes from HUD HOME / CDBG (federal entitlement funds).

Bloomington Down Payment & Closing Cost Assistance Program offers up to $10,000 in assistance. Homebuyer contribution: Not published. Amounts are the program's published maximums, not an offer — City of Bloomington Housing and Neighborhood Development (HAND) determines any individual award.

Bloomington Down Payment & Closing Cost Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale or loss of owner-occupancy before 5 years; forgives 20% per year. The assistance is recorded in Second (subordinate) mortgage position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Bloomington Down Payment & Closing Cost Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Counts as first-time if not owned any real estate for more than 3 years. On credit, the program states: Not published; must qualify for an affordable first mortgage. A homebuyer education course is required, through City of Bloomington HAND Homebuyers Club class. Residency requirement: Must owner-occupy assisted property. Distinct from Bloomington's Shared Equity Homeownership Program (already in catalog). Must complete Homebuyers Club class. Min credit score, max purchase price, and min contribution not published on the official page; the linked guidelines PDF returned no machine-readable text - left blank intentionally.

Bloomington Down Payment & Closing Cost Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household at or below 80% AMI; 4-person limit $86,700 (1-person $60,700 up to 8-person $114,450). Income guidelines subject to change. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

Bloomington Down Payment & Closing Cost Assistance Program caps the purchase price as follows: Not published in program page. Eligible property types include single-family.

Bloomington Down Payment & Closing Cost Assistance Program serves homebuyers purchasing in Bloomington, Indiana.

Applications for Bloomington Down Payment & Closing Cost Assistance Program go through City of Bloomington Housing and Neighborhood Development (HAND), which publishes the current terms and the application steps on its own site. Funds are reserved through Application via Neighborly Software portal. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.