City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network)

What is City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network)?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) is a forgivable loan for homebuyers in Gary, Indiana, administered by City of Gary Community Development Division (Homeownership Opportunity Network).

• The City of Gary's Down Payment Assistance Program, delivered through the Homeownership Opportunity Network, provides forgivable loans toward down payment, principal reduction, and closing costs for homes in Gary's Qualified Census Tracts. A January 2026 ARPA-funded expansion (Ordinance No. 9754) raised key-personnel assistance to up to $30,000, while other Gary residents are eligible for up to 6% of the purchase price (max $10,000). Buyers complete the HON homebuyer education workshop and must keep the home as their primary residence for a 5-year affordability period.
• Up to $30,000 for key personnel.
• Up to $10,000 (6% of price) for other Gary residents.
• Forgivable after 5-year residency.
• Covers down payment, closing costs, prepaids, points, and rate buy-downs.
• First-come, first-served.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from Federal HOME funds (original HON) and ARPA funds (2026 expansion, Ordinance No. 9754).

How much assistance does it provide?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) offers up to $30,000 in assistance.

• Award tiers: Key personnel (first responders, all City of Gary employees, Sanitary District and Gary/Chicago Airport staff, teachers, healthcare workers): up to $30,000. Other city residents: up to 6% of purchase price, max $10,000.
• Amounts are the program's published maximums, not an offer — City of Gary Community Development Division (Homeownership Opportunity Network) determines any individual award.

Do you have to pay it back?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• The assistance is recorded in Second position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) sets its income limit as follows: Annual household income within program limits (original HON, HOME-based); 2026 ARPA expansion tied eligibility to Qualified Census Tracts and occupation/residency categories.

• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) can be used for Single-family.

• New construction is eligible.

Is there eligibility for specific groups?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) names educators, law enforcement officers, firefighters, and healthcare workers among the groups it serves.

• Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) is a federal program, so it is not limited to Indiana.

• The program targets specific areas: Eligible properties must be in designated Qualified Census Tracts; original HON Target Areas: Midtown, Horace Mann/Downtown West, Aetna, University Park.

How do you apply?

Applications for City of Gary First-Time Homebuyer Down Payment Assistance (Homeownership Opportunity Network) go through City of Gary Community Development Division (Homeownership Opportunity Network), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through City of Gary HON Homebuyer Education Workshop plus a counseling session..

2. 2

   Contact City of Gary Community Development Division (Homeownership Opportunity Network) to reserve funds

   Funds are reserved through First-come, first-served, one-time basis through the Community Development Division., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.