Home Ownership Program

What is 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.

Do you have to pay it back?

Home Ownership Program is forgiven after 10 years, so a buyer 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.

Who qualifies?

Home Ownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Is there eligibility for specific groups?

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.

Where does it apply?

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

How do you apply?

Applications for Home Ownership Program 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 Mandatory 8-hour Homebuyer Financial Education Workshop provided by the East Chicago Department of Redevelopment prior to receiving DPA..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application through East Chicago Department of Redevelopment; first-come first-served subject to funding availability, 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.