Down Payment Assistance

What is Down Payment Assistance?

Down Payment Assistance is a forgivable loan for homebuyers in Indianapolis, Indiana.

• INHP's Down Payment Assistance — $7,500 to $24,999 forgivable 2nd mortgage tied to an INHP first mortgage, for first-time homebuyers <=80% AMI in Marion County. 640 FICO, $1,000 borrower contribution, mandatory homebuyer education.
• INHP's Down Payment Assistance program provides $7,500 to $24,999 in down-payment and closing-cost assistance to qualified first-time homebuyers in Marion County. The DPA is structured as a 0% interest forgivable second mortgage paired with an INHP-originated first mortgage. Tier amount depends on household size and income (80% AMI or less). Borrower contribution of $1,000 required. Forgiveness over a multi-year occupancy term.
• balance recaptured prorate if the borrower sells, refinances, or vacates within the term.
• Funding comes from City, Federal, CDFI, and Philanthropic.

Do you have to pay it back?

Down Payment Assistance is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Forgivable over occupancy term and prorated recapture on sale/refinance/non-occupancy.
• 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.

Who qualifies?

Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

• Household income at/below 80% AMI Marion County (range ~$57,650-$108,650 across household sizes).
• 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.

What kind of home can it be used for?

Down Payment Assistance caps the purchase price as follows: Per first-mortgage product underwriting; INHP does not publish a fixed cap.

• Eligible property types include Single-family detached, condominium, townhouse, 1-2 unit.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment Assistance serves buyers purchasing in Indianapolis, Indiana.

How do you apply?

Applications for Down Payment Assistance go through the administering agency, 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 INHP Homebuyer Education / HUD-approved homebuyer education required prior to closing..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application through INHP after homebuyer-readiness coaching; subject to ongoing CDFI funding, 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.