Home Ownership Program

Home Ownership Program is a forgivable loan for homebuyers in East Chicago, Indiana. East Chicago HOP — Mayor & Department of Redevelopment provides 0% interest forgivable second mortgages for home purchases in East Chicago. Up to $25,000 for new construction (10-year forgivable) or $10,000 for existing homes (5-year forgivable). City employees receive enhanced amounts up to $30,000. Mandatory 8-hour Homebuyer Financial Education Workshop required. City of East Chicago Department of Redevelopment provides a 0% interest second-mortgage forgivable down-payment assistance loan: up to $25,000 for newly constructed homes (10-year forgivable, 10%/year), or up to $10,000 for pre-existing homes (5-year forgivable, 20%/year). City of East Chicago full-time employees are eligible for enhanced assistance up to $30,000 (per 2022+ DPA Program Guidelines). Funds may be used for down payment and closing costs. Funding comes from City, Federal, CDBG, and HOME.

Home Ownership Program is forgiven after 10 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Forgiven equal percentages each year (10% over 10 years for new construction / 20% over 5 years for existing) and prorated balance due on sale, refinance, or non-occupancy within forgiveness term. 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.

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: Verified case-by-case by Department of Redevelopment. On credit, the program states: Per first-mortgage product overlays. A homebuyer education course is required, through Mandatory 8-hour Homebuyer Financial Education Workshop provided by the East Chicago Department of Redevelopment prior to receiving DPA. Residency requirement: Property must be located within East Chicago city limits and used as primary residence. Citizenship or immigration status: Per first-mortgage product overlays. Property must be located within East Chicago city limits. Must be primary residence. Must complete 8-hour Homebuyer Financial Education Workshop. Income limits per HUD-published Lake County limits (specific bands not posted to city site — applicant's eligibility verified during application). Standard first-mortgage product underwriting applies. City employees receive enhanced amounts. Existing-home and new-construction tiers have different forgiveness terms.

Home Ownership Program sets its income limit as follows: Income limits per HUD-published Lake County, IN annual figures (specific tiers not posted publicly to city site as of April 2026). 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.

Home Ownership Program caps the purchase price as follows: Not publicly posted; verified during application. Eligible property types include Single-family detached (existing reconstructed and newly constructed). New construction is eligible. Manufactured homes are not eligible.

Home Ownership Program names educators, law enforcement officers, and firefighters 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.

Home Ownership Program serves homebuyers purchasing in East Chicago, Indiana.

Applications for 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 East Chicago Department of Redevelopment; first-come first-served subject to funding 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.