Down Payment Assistance
Freddie Mac BorrowSmart
We have partnered up with Freddie Mac and Independent Bank to offer a new special purpose credit program to address homeownership gaps for underserved minority borrowers and communities. The program provides down payment assistance (DPA) to qualified borrowers in specific metropolitan areas.
For eligible borrowers, Freddie Mac will provide $1500 in assistance with a match of $1500 from Independent Bank.
To Qualify for BorrowSmart Access Assistance you must meet the following requirements:
- At least one borrower must be a First-Time Homebuyer
- Income at or below 140% of AMI (Currently up to $127,120)
- Originate a HomeOne (1 unit only) or another Freddie Mac mortgage (other than Home Possible)
- Purchase a 1- or 2-unit primary home
- Be in the Detroit-Warren-Dearborn CBSA (counties of Lapeer, Livingston, Macomb,
- Oakland, St. Clair, and Wayne.)
- Receive an LPA rating of “Accept”
FHLBI HOP PROGRAM (Available in MI and MN)
The Homeownership Opportunities Program (HOP) is a FHLBank Indianapolis (FHLBI) Down
Payment Assistance program and is part of the Homeownership Initiatives Programs allocation.
Eligible households can request up to $10,000 (minimum request is $1000) to use for down
payment, closing costs and counseling costs when applying for your new first mortgage.
We are happy to announce we are offering a new Homeownership Opportunities Program (HOP) only round beginning March 1, 2023, that offers up to $10,000 for down-payment, closing costs and homebuyer counseling costs to first-time home buyers with a household income at or below 80% of the Area Median Income. FHLBank Indianapolis will make available $500,000 for this special HOP-only round.
The funds are available on a first-come, first-serve basis until funds are exhausted or end of day April 28, 2023, whichever occurs first. Additional funds will be available in our traditional Homeownership Initiatives round beginning on May 15, 2023, where all three programs (HOP, NIP, AMP) will be open.
To Qualify for FHLBI HOP Program you must meet the following requirements:
- $1000 borrower contribution required from personal funds
- Purchase of an owner occupied 1-4 family property, townhouse, condominium, cooperative or manufactured home deeded as Real Estate
- Maximum monthly housing ratio (front end ratio) including principal, interest, taxes, insurance, and HOA may not exceed 38%
- Minimum loan term is 15 years
- HUD or FHLBI approved Homebuyer counseling required, when using online course, the Loan Officer is to follow up with the household and answer/clarify any questions they may have
- Income from all household members needed to determine eligibility, reference 2023
- Income Guidelines (Attachment D) for income documentation requirements
City Of Detroit Down Payment Program
The City of Detroit has committed $6 million received from the American Rescue Plan Act of 2021 (“ARPA”) to rebuild homeownership in the City of Detroit. The Detroit Down Payment Assistance Program provides qualifying families grants up to $25,000 for down payment, prepaids including interest rate buy down, closing costs, and principal reduction in conjunction with purchasing a home using a purchase mortgage or a purchase renovation mortgage. The total amount of assistance cannot exceed 50% of the purchase price, down payment, prepaids including interest rate buy down, closing costs, and repairs financed into a renovation mortgage. The grants are available to homebuyers who have not held interest in a property for the last 3 years. All grant recipients must have household incomes of less 300% of national poverty level issued annually by the Department of Health and Human Services. THE PURCHASED HOME MUST BE THE PRINCIPAL RESIDENCE FOR THREE (3) YEARS AFTER GRANT AWARD OR THE GRANT MUST REPAID.
- For purchase mortgages, you must be a homebuyer who has not held an interest in property in the last 3 years
- You must prove that you resided in the city of Detroit for the last 12 months
You must prove that you lost a home due to property tax foreclosure within the City of Detroit between the period of 2010-2016
- Your total household income may not exceed 300% of the national poverty level for your household size issued annually by the US Department of Health and Human Services. See the table below for income limits.
|1 Person||2 Person||3 Person||4 Person||5 Person||6 Person||7 Person||8 Person|
- You must complete the required HUD approved education
- You must purchase a 1–2-unit property in the City of Detroit as your primary residence and plan for it to remain as your primary residence for the next 3 years
- You must contribute a minimum of $1,000 towards the purchase of the property
- The housing expense ratio must not exceed 35%
- The program offers up to $25,000 to be used for down payment, prepaids including interest rate buy down, closing costs, and principal reduction in conjunction with a purchase mortgage or a renovation mortgage. The total amount of assistance cannot exceed 50% of the purchase price, down payment, prepaids including interest rate buy down, closing costs, and repairs financed into a renovation mortgage.
- Each section of the application for assistance must be completed for each household/family member. If the amount for any family member is zero (0), you must enter a zero (0). Your application for assistance will not be processed if any information is missing. All lines that require a signature must be signed. If there is a witness line, it must be signed by a witness before it can be submitted. If there is a notary section, the document must be notarized before it can be submitted.
- All household income must be declared and will be counted toward the income limit for your family size
Robert Wood Johnson Foundation Grant
First Independence Bank has partnered up with Robert Wood Johnson Foundation to provide Down Payment Assistance to Detroit, with a focus on minority, disadvantaged, low-income and other underserved populations. The Robert Wood Johnson Foundation is offering a grant of up to $7,500 toward down payment & closing cost for first time home buyers. Here are some basic guidelines and requirements for the program:
- Available for homes located in Michigan, in the counties of Wayne, Oakland, and Macomb.
- Qualifying low-income households.
- Conventional Loans Only.
- Minimum credit score of 640.
- 2- year employment history required.
- New or existing single-family residence, agency approved condos, and new or existing multiple section Manufactured homes.
- Borrower must occupy the property as his/her primary residence within 60 days of loan closing.
- You must complete the required HUD approved education