Q: Do you have to pay it back?

Homebound Downpayment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it. Repayment is triggered by Forgivable over 5 years and full recapture if borrower moves/rents/transfers/vacates/deceased within 5 years. 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.

Q: Who qualifies?

Homebound Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence. "First-time" has exceptions here: 12-month look-back (not strict 3-year). On credit, the program states: Per first-mortgage product overlays. A homebuyer education course is required, through HUD-approved homebuyer education required (referral via Hammond Community Development Department). Residency requirement: Property must be located within Hammond city limits and used as primary residence for full 5-year forgiveness term. Citizenship or immigration status: Per first-mortgage product overlays. First-time homebuyer or no homeownership in past 12 months. Property must be applicant's principal residence in Hammond city limits. Income at/below HUD 80% AMI Lake County, IN MSA (~$50,900-$96,000 by household size). Maximum sales price ~$228,000 (HOME-program safe-harbor cap). HUD-approved homebuyer education required. Subject to 5-year recapture if borrower moves, rents, transfers, vacates, or becomes deceased and home is no longer primary residence.

Q: What are the income limits?

Homebound Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income at/below HUD 80% AMI for Lake County, IN MSA (range ~$50,900-$96,000 across household sizes per current HUD limits). 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.

Q: What kind of home can it be used for?

Homebound Downpayment Assistance Program caps the purchase price at $228,000. Eligible property types include Single-family detached (existing or new construction). New construction is eligible. Manufactured homes are not eligible.

Q: Is there eligibility for specific groups?

Homebound Downpayment Assistance 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.

Q: Where does it apply?

Homebound Downpayment Assistance Program serves buyers purchasing in Hammond, Indiana.

Q: How do you apply?

Applications for Homebound Downpayment Assistance 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 Hammond Community Development Department; first-come first-served subject to fund availability. 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.

Question 1

What is Homebound Downpayment Assistance Program?

Accepted Answer

Homebound Downpayment Assistance Program is a forgivable loan for homebuyers in Hammond, Indiana. Hammond Homebound DPA — up to $10,000 forgivable 2nd mortgage @ 5-year recapture, 0% interest. FTHB or no homeownership in past 12 months. Hammond city limits; <=80% AMI Lake County. Hammond Police/Fire/Educational/City employees receive automatic $10,000 award. City of Hammond Homebound DPA provides up to $10,000 in down-payment and closing-cost assistance, structured as a 0% interest 5-year forgivable second mortgage. Forgiveness is subject to recapture if the borrower sells, rents, transfers ownership, vacates, or otherwise stops using the home as primary residence within 5 years. Funds may be applied to existing or new-construction homes in Hammond. Hammond Police, Fire, Educational Professionals, and full-time employees of the City of Hammond, Hammond Water Works, Port Authority, Sanitary District, and Housing Authority receive a flat $10,000 award. Funding comes from Federal, HOME, CDBG, and City.

Question 2

Do you have to pay it back?

Accepted Answer

Homebound Downpayment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it. Repayment is triggered by Forgivable over 5 years and full recapture if borrower moves/rents/transfers/vacates/deceased within 5 years. 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.

Question 3

Who qualifies?

Accepted Answer

Homebound Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence. "First-time" has exceptions here: 12-month look-back (not strict 3-year). On credit, the program states: Per first-mortgage product overlays. A homebuyer education course is required, through HUD-approved homebuyer education required (referral via Hammond Community Development Department). Residency requirement: Property must be located within Hammond city limits and used as primary residence for full 5-year forgiveness term. Citizenship or immigration status: Per first-mortgage product overlays. First-time homebuyer or no homeownership in past 12 months. Property must be applicant's principal residence in Hammond city limits. Income at/below HUD 80% AMI Lake County, IN MSA (~$50,900-$96,000 by household size). Maximum sales price ~$228,000 (HOME-program safe-harbor cap). HUD-approved homebuyer education required. Subject to 5-year recapture if borrower moves, rents, transfers, vacates, or becomes deceased and home is no longer primary residence.

Question 4

What are the income limits?

Accepted Answer

Homebound Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. Household income at/below HUD 80% AMI for Lake County, IN MSA (range ~$50,900-$96,000 across household sizes per current HUD limits). 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.

Question 5

What kind of home can it be used for?

Accepted Answer

Homebound Downpayment Assistance Program caps the purchase price at $228,000. Eligible property types include Single-family detached (existing or new construction). New construction is eligible. Manufactured homes are not eligible.

Question 6

Is there eligibility for specific groups?

Accepted Answer

Homebound Downpayment Assistance 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.

Question 7

Where does it apply?

Accepted Answer

Homebound Downpayment Assistance Program serves buyers purchasing in Hammond, Indiana.

Question 8

How do you apply?

Accepted Answer

Applications for Homebound Downpayment Assistance 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 Hammond Community Development Department; first-come first-served subject to fund availability. 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.

Homebound Downpayment Assistance Program