Launch – Down Payment Assistance

Launch – Down Payment Assistance is a forgivable loan for homebuyers in Indiana, administered by Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis). Launch is FHLBank Indianapolis's annual down payment assistance program for income-qualified first-time homebuyers purchasing a primary residence in Indiana or Michigan. It provides a grant of up to $20,000 (or 20% of the purchase price, whichever is less) toward down payment, closing costs, and housing counseling costs. The funds are delivered through participating FHLBI member financial institutions, never directly to households, and are subject to a five-year retention agreement under which a pro-rated amount may be recaptured from net proceeds if the home is sold or refinanced within five years. Up to $20,000 toward down payment, closing costs and housing counseling. Grant forgiven over 5-year retention period. Available with first mortgage through participating FHLBI member lenders. Funding comes from FHLBank Indianapolis Affordable Housing Program (AHP) Homeownership Initiatives set-aside.

Launch – Down Payment Assistance offers between $1,000 and $20,000 in assistance. Homebuyer contribution: Homebuyer must contribute a minimum of $500 in personal cash funds (earnest money, cash to close, or closing costs paid outside of closing). The program can be combined with May be combined with a first mortgage from a participating FHLBI member; cannot stack a second FHLB grant on the same property. Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) determines any individual award.

Launch – Down Payment Assistance is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Pro-rated repayment from net proceeds if the home is sold or refinanced within the 5-year retention period; exceptions for sale/transfer to a very low-, low-, or moderate-income household, qualifying refinances, death of sole owner, or when calculated repayment is less than $2,500. The assistance is recorded in Subordinate (retention agreement/lien filed with municipal office) position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Launch – Down Payment Assistance is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: First-time homebuyer = no ownership interest in a principal residence during the 3-year period ending on the purchase date. A homebuyer education course is required, through Any organization experienced in homebuyer/homeowner counseling; completion certificate required; may be in-person or online. Residency requirement: Property must be purchased in Indiana or Michigan and occupied as primary residence by all individuals in title.

Launch – Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size. Household income at or below 80% of HUD area median income (AMI) for household size and the county where the property is located, at the time of enrollment. 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.

Launch – Down Payment Assistance caps the purchase price as follows: No stated maximum purchase price; subsidy capped at lesser of $20,000 or 20% of purchase price. Eligible property types include Single Family, Condo, Townhouse, 2-4 Unit, Manufactured, and Co-op. New construction is not eligible. Manufactured homes are eligible.

Launch – Down Payment Assistance serves homebuyers purchasing anywhere in Indiana.

Applications for Launch – Down Payment Assistance go through Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis), which publishes the current terms and the application steps on its own site. Funds are reserved through First-come, first-served via FHLBI member through the .GIVES online system until funds exhausted. 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.