FHLBank Indianapolis Launch Down Payment Assistance (HOP)

What is FHLBank Indianapolis Launch Down Payment Assistance (HOP)?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) is a grant for homebuyers in Michigan, administered by Federal Home Loan Bank of Indianapolis (via participating member financial institutions).

• Launch Down Payment Assistance (formerly the Homeownership Opportunities Program, HOP) is an annually recurring grant funded through FHLBank Indianapolis's Affordable Housing Program homeownership set-aside. It helps first-time homebuyers at or below 80% of area median income with down payment, closing costs, housing counseling costs, and buyer-broker's fee when purchasing a primary residence in Michigan or Indiana. FHLBank Indianapolis does not work directly with households; the grant is delivered through a participating member financial institution. Distinct from HomeBoost, a separate special-purpose credit DPA product.
• Grant up to $20,000 (or 20% of purchase price) for down payment, closing costs, counseling, and buyer-broker fee.
• Forgiven after a 5-year retention period.
• Funding comes from FHLBank Indianapolis Affordable Housing Program (AHP) Homeownership set-aside (12 CFR Part 1291).

How much assistance does it provide?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) offers between $1,000 and $20,000 in assistance.

• Buyer contribution: Minimum $500 personal cash contribution toward the purchase (earnest money, cash at closing, and/or expenses paid outside closing).
• Amounts are the program's published maximums, not an offer — Federal Home Loan Bank of Indianapolis (via participating member financial institutions) determines any individual award.

Do you have to pay it back?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) is structured as a grant, so it is not repaid.

• Repayment is triggered by Pro-rated repayment from net proceeds if the unit is sold or refinanced during the 5-year retention period, subject to exceptions (low/moderate-income transferee, death of all owners, calculated repayment under $2,500, etc.). Limited to available net proceeds.
• The assistance is recorded in Grant secured by a Real Estate Retention Agreement; first mortgage retains first lien position. position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

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

What are the income limits?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) 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, adjusted for family size, based on the subject property's location at enrollment (HUD limits, AHP Implementation Plan Attachment D).
• 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?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) caps the purchase price as follows: No fixed maximum; subsidy capped at the lesser of $20,000 or 20% of purchase price. First mortgage amount(s) may not exceed the sales price.

• Eligible property types include Single Family, 2-4 Unit, Townhouse, Condo, Co-op, and Manufactured.
• New construction is not eligible.
• Manufactured homes are eligible.

Where does it apply?

FHLBank Indianapolis Launch Down Payment Assistance (HOP) serves buyers purchasing anywhere in Michigan.

How do you apply?

Applications for FHLBank Indianapolis Launch Down Payment Assistance (HOP) go through Federal Home Loan Bank of Indianapolis (via participating member financial institutions), 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 Homebuyer/homeowner counseling by an experienced organization; completion certificate required, generally completed within one year before enrollment and before closing..

2. 2

   Contact Federal Home Loan Bank of Indianapolis (via participating member financial institutions) to reserve funds

   Funds are reserved through Funds reserved and disbursed by participating members via the FHLBank Indianapolis online system; first-come, first-served until 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.