Home Down Payment Assistance Program

What is Home Down Payment Assistance Program?

Home Down Payment Assistance Program is a deferred second loan for homebuyers in Multi-County County, Indiana.

• UWWV HDPAP — joint-venture DPA with regional banks providing up to 5% (3% DP / 2% closing) for homes <=$80,000 in Vigo, Clay, Parke, Sullivan, Vermillion (IN) and Clark (IL). Above $80,000: case-by-case max $4,000. Recapture agreement recorded at closing. <=80% AMI.
• United Way of the Wabash Valley's Home Down Payment Assistance Program (HDPAP), a joint venture with regional partner financial institutions, provides up to 5% of the purchase price (3% down payment + 2% closing costs) for homes priced at or below $80,000. For homes priced above $80,000, assistance is considered case-by-case but capped at $4,000. A Recapture Agreement is recorded at closing allowing United Way to recover a portion of the DPA if the agreement's terms are not kept.
• Funding comes from United Way, PartnerBanks, and Philanthropic.

How much assistance does it provide?

Home Down Payment Assistance Program provides assistance worth 5% of the purchase price, as set by the program.

• Buyer contribution: Per first-mortgage product overlays.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Home Down Payment Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Recapture per UWWV agreement if terms are not kept (specific term per signed agreement).
• 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?

Home Down Payment Assistance Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

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

• Entire household income at/below 80% AMI of the property county per HUD-published limits (range ~$38,050-$85,700 across counties and 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?

Home Down Payment Assistance Program caps the purchase price at $80,000.

• Eligible property types include Single-family detached (existing or new construction).
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Home Down Payment Assistance Program serves buyers purchasing in Multi-County County, Indiana.

How do you apply?

Applications for Home Down Payment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application through United Way of the Wabash Valley; subject to fund and partner-bank availability, and are subject to availability.

2. 2

   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.