FHLBank Indianapolis Homeownership Opportunities Program (HOP)

What is FHLBank Indianapolis Homeownership Opportunities Program (HOP)?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) is a grant for homebuyers in Indiana, administered by Federal Home Loan Bank of Indianapolis (via member financial institutions).

• The Homeownership Opportunities Program (HOP) is FHLBank Indianapolis's AHP-funded down payment, closing cost, and counseling cost assistance for first-time homebuyers at or below 80% AMI buying a primary residence. Subsidy ranges from $1,000 to $20,000 per household and is accessed only through FHLBI member financial institutions. Funds carry a 5-year retention agreement with pro-rated repayment from net proceeds on early sale or refinance.
• Up to $20,000 grant for down payment/closing/counseling costs.
• 0% subsidy with 5-year retention.
• Repayment only from net proceeds.
• Manufactured homes (as real estate) eligible.
• Low $500 borrower contribution.
• Funding comes from FHLBank Indianapolis Affordable Housing Program (AHP) / Homeownership Initiatives allocation.

How much assistance does it provide?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) offers between $1,000 and $20,000 in assistance.

• Buyer contribution: Minimum $500 in personal cash funds toward purchase (earnest money, cash at closing, or costs paid outside closing).
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Indianapolis (via member financial institutions) determines any individual award.

Do you have to pay it back?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) is structured as a grant, so it is not repaid.

• Repayment is triggered by Pro-rated repayment from net proceeds if sold/refinanced within 5-year retention period (with exceptions; no repayment if calculated amount < $2,500, on death of sole owner, or if buyer is low/moderate income).
• The assistance is recorded in Retention agreement / subsidy lien (subordinate) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) limits household income to 80% of the area median income, which varies by county and household size.

• Household at or below 80% AMI (HUD limits by property location and family size, per FHLBI Attachment D). 4-person dollar limit varies by county/MSA - not a single statewide figure.
• 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?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) caps the purchase price as follows: No fixed price cap; mortgage amount may not exceed sales price.

• Eligible property types include single-family 1-4 unit (owner-occupied), townhouse, condominium, cooperative, and manufactured home deeded as real estate.
• New construction is not eligible.
• Manufactured homes are eligible.

Where does it apply?

FHLBank Indianapolis Homeownership Opportunities Program (HOP) serves buyers purchasing anywhere in Indiana.

How do you apply?

Applications for FHLBank Indianapolis Homeownership Opportunities Program (HOP) go through Federal Home Loan Bank of Indianapolis (via member financial institutions), 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 Homebuyer/homeowner counseling program completed before closing, generally within one year of enrollment.

2. 2

   Contact Federal Home Loan Bank of Indianapolis (via member financial institutions) to reserve funds

   Funds are reserved through First-come, first-served via member institutions through FHLBI .GIVES online system until funds exhausted, 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.