Launch – Down Payment Assistance

What is 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.

How much assistance does it provide?

Launch – Down Payment Assistance offers between $1,000 and $20,000 in assistance.

• Buyer 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.

Do you have to pay it back?

Launch – Down Payment Assistance is forgiven after 5 years, so a buyer 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.

Who qualifies?

Launch – Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

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.

What kind of home can it be used for?

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.

Where does it apply?

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

How do you apply?

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.

1. 1

   Take a homebuyer education course

   Required by the program, through Any organization experienced in homebuyer/homeowner counseling; completion certificate required; may be in-person or online..

2. 2

   Contact Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) to reserve funds

   Funds are reserved through First-come, first-served via FHLBI member through the .GIVES online system until funds exhausted, 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.