Shared Equity Homeownership Program

What is Shared Equity Homeownership Program?

Shared Equity Homeownership Program is a shared-appreciation loan for homebuyers in Bloomington, Indiana.

• Bloomington Shared Equity Homeownership Program — at least 20% of purchase price (up to $50,000) as a 0% interest, 99-year deferred shared-appreciation 2nd mortgage in exchange for permanent deed-restricted affordability. 50% of appreciation shared with City at resale; resale restricted to income-eligible buyers. Up to ~140% AMI Monroe County. Permanent affordability instrument (Grounded Solutions / CLT-aligned model).
• Bloomington's Shared Equity Homeownership Program provides at least 20% of the purchase price (up to ~$50,000) as a 0% interest deferred-payment loan in exchange for a permanent affordability deed restriction. The City's loan principal is repayable upon future sale of the home, AND the homeowner must share 50% of the home's appreciated value with the City at resale. The home must be resold to another income-eligible buyer (perpetual affordability). Term: 99 years. Combined with Community Land Trust (Summit Hill CLT) structures for some properties.
• Funding comes from City and Recover Forward Funds (federal ARPA).

How much assistance does it provide?

Shared Equity Homeownership Program provides assistance worth 20% of the purchase price, as set by the program.

• Buyer contribution: Per first-mortgage product overlays.
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Shared Equity Homeownership Program is a shared-appreciation loan and is repaid under the terms set by the administering agency.

• Repayment is triggered by Principal due at resale, 50% of appreciation also owed to City, and resale must be to income-eligible buyer.
• 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?

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

What are the income limits?

Shared Equity Homeownership Program limits household income to 140% of the area median income, which varies by county and household size.

• Household income limits up to ~140% AMI Monroe County (range $83,520-$157,320 across household sizes).
• 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?

Shared Equity Homeownership Program caps the purchase price as follows: City limits assistance to ~20% of purchase price up to $50,000 cap; underlying home values typically below 120% Monroe County median.

• Eligible property types include Single-family detached, condominium, townhouse, CLT-leasehold parcels.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Shared Equity Homeownership Program serves buyers purchasing in Bloomington, Indiana.

How do you apply?

Applications for Shared Equity Homeownership 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 City of Bloomington HAND Homebuyers Club (8-hour HUD-approved homebuyer education); completion required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Direct application to HAND after Homebuyers Club; case-by-case subject to inventory of shared-equity homes, 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.