Down Payment and Closing Cost Home Ownership Program

Down Payment and Closing Cost Home Ownership Program is a forgivable loan for homebuyers in Bloomington, Indiana. Bloomington HAND's Down Payment and Closing Cost HOP — up to $10,000 forgivable 2nd mortgage @ 20%/year over 5 years, 0% interest. First-time homebuyer required, must complete HAND Homebuyers Club. Bloomington city limits; <=80% AMI Monroe County. HAND's Down Payment and Closing Cost Home Ownership Program provides up to $10,000 in down-payment and closing-cost assistance to eligible first-time homebuyers in Bloomington. The assistance is structured as a 0% interest forgivable second mortgage that forgives at 20% per year and is fully forgiven after 5 years of owner-occupancy. If the borrower sells, refinances, or vacates before 5 years, a prorated balance is owed back to the City. Funding comes from Federal, HOME, CDBG, and City.

Down Payment and Closing Cost Home Ownership Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven 20%/year and prorated balance due on sale/refinance/non-occupancy within 5 years. The assistance is recorded in 2nd Lien position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Down Payment and Closing Cost Home Ownership Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Strict 3-year FTHB rule with limited exceptions. On credit, the program states: Per first-mortgage product overlays. A homebuyer education course is required, through City of Bloomington HAND Homebuyers Club (8-hour HUD-approved homebuyer education); completion required prior to receiving assistance. Residency requirement: Property must be located within Bloomington city limits and used as primary residence. Citizenship or immigration status: Per first-mortgage product overlays. First-time homebuyer (no homeownership in past 3 years). Must complete HAND Homebuyers Club. Must qualify for an affordable first mortgage with a lender that allows the HAND second mortgage. Household income at/below ~80% AMI Monroe County (range ~$55,650-$104,900 by household size). Property must be in Bloomington city limits and used as primary residence.

Down Payment and Closing Cost Home Ownership Program limits household income to 80% of the area median income, which varies by county and household size. Household income limits ~80% AMI Monroe County (range $55,650-$104,900 across household sizes per HUD-published limits). The limit applies to total household income, not only the borrower&rsquo;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.

Down Payment and Closing Cost Home Ownership Program caps the purchase price as follows: Per first-mortgage product underwriting; HAND does not publish a fixed cap. Eligible property types include Single-family detached, condominium, townhouse. New construction is eligible. Manufactured homes are not eligible.

Down Payment and Closing Cost Home Ownership Program serves homebuyers purchasing in Bloomington, Indiana.

Applications for Down Payment and Closing Cost Home Ownership Program go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Direct application through HAND after completing Homebuyers Club; first-come first-served subject to fund availability. 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.