Down Payment & Closing Cost Assistance

Down Payment and Closing Cost Homeownership Program

The assistance is in the form of a forgivable 2nd mortgage. As long as you remain the owner occupier of the assisted property the 2nd mortgage forgives at a rate of 20% per year. The 2nd mortgage completely forgives after 5 years.

You may be eligible if:

• You have completed the Home Buyers Club class
• You are a first-time home buyer *if you have not owned any real estate for more than 3 years*
• You qualify for an affordable first mortgage with a lender that will allow a HAND second mortgage
• Your household income is at or below 80% of the area median income

Current Income Guidelines

To be eligible, the household must be at or below 80% area median income. Use the chart below to see if you are potentially eligible for our housing loans or programs. Income guidelines are subject to change.

Shared Equity Homeownership Program

You may be eligible if:

• You have completed the Home Buyers Club class
• You are a first-time home buyer *if you have not owned any real estate for more than 3 years*
• You qualify for an affordable first mortgage with a lender that will allow a HAND second mortgage
• Your household income is less than 120% of the area median income

Attached are the program guidelines, which completely outlines all eligibility requirements for the program. 

Current Income Guidelines

To be eligible, the household must be less than 120% area median income. Use the chart below to see if you are potentially eligible for our housing loans or programs. Income guidelines are subject to change.

Applications for the down payment and closing cost assistance programs can be submitted electronically here

Please direct questions to 812-349-3401, HAND@bloomington.in.gov