Gary homebuyers earning up to $105,700 a year for a family of four may qualify for a new down payment assistance program in cooperation with the Indianapolis Housing Agency.
The Gary Common Council entered into the cooperative agreement with the IHA, which administers the Hoosier Homes program. The program provides assistance to HUD, Fannie Mae and Freddie Mac qualified loans.
Arlene Colvin, director of community development, said the down payment assistance program is different from those offered in the past. The program will provide 3%, 4% or 5% down payment assistance to qualified borrowers who make up to 140% of the Gary median income, or $150,700.
Other programs typically only went up to 80% of the city’s median income which is about $60,000. The new program captures a different set of individuals, she said.
Colvin said the program targets first responders, teachers and veterans. There is no cost to the city to participate in the program, which will be offered directly through lenders.
“This will be another tool (lenders) are able to offer to someone,” she said. People will have to be made aware this program specifically targets a larger pool of individuals.
She said the city, lenders and the IHA will work together to get the information out about the program and lenders also will promote it.
Council President William Godwin, D-1st, called the program transformative especially with the ability to target buyers like first responders and teachers.
He said as a Realtor one of the things he sees is the cost of real estate in the city climbing, which is a good thing for the city’s assessed value, but a challenge for potential homebuyers. With the current programs available, buyers who make $40,000, $50,000 and $60,000 don’t qualify for assistance and are priced out of the market.
Carrie Napoleon is a freelance reporter for the Post-Tribune.
