City of Gary Indiana First Time Home Buyer Down Payment Assistance
Financial Assistance for Homebuyers in Indiana
The First Time Homebuyer Program uses HOME funds to provide eligible applicants with assistance funds, in the form of forgivable loans. The money can be put toward principal reduction, down payment, or closing costs to help offset some expenses. The amount of assistance each borrower receives is based on their income, the maximum being 10 percent of the purchase price or $10,000, whichever is less. Assistance is provided on a first-come, first served, and one-time basis.
In order to be considered eligible for the First Time Homebuyer Program, all applicants must meet certain requirements. They must be first-time homebuyers (individuals who have not owned a home in the last 3 years), and their annual household income must fall within the program’s set limits (shown below). All borrowers are required to successfully complete the City of Gary HON Homebuyer Education Workshop, as well as a counseling session. Certificates from other HUD-approved agencies may be accepted.
Any property located in the certain Empowerment Zones and Target Areas (listed below) must be new construction in order to receive the maximum amount of down payment assistance.
Empowerment Zone and Target Areas: Brunswick, Central/Midtown, Emerson, Horace Mann, Pulaski, Small Farms, and Tolleston.
Target Areas for the Gary, Indiana Area: Midtown, Horace Mann/Downtown West, Aetna, and University Park (IUN/IVY Tech).
1 person household: $35,250
2 person household: $40,250
3 person household: $45,300
4 person household: $50,300
5 person household: $54,350
6 person household: $58,350
*Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.
(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Indiana
This program is provided through the Homeownership Opportunity Network (HON) and assists borrowers by providing HOME program funds in the form of forgivable loans for principal reduction, down payment, and closing costs when purchasing a home.
The Indiana Housing and Community Development Authority (IHCDA) offer a number of homeownership programs, one of which is Next Home, that provides homebuyers with down payment assistance.
The Homebuyer Assistance Program is designed to assist households with overcoming this hurdle, by assisting with down payment, fees, closing costs, etc. The program helps qualified households with a maximum assistance of $5,000 for closing costs, down payment, and fees.
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