Homeownership Opportunities Program
- Offers $8,000 in assistance to qualifying low- to middle-income buyers
- Must be a first-time homebuyer
- Must be at or below 80% of your area median income for your county of residence
- You must contribute a minimum of $1,000 toward the purchase of the home
Eligible properties include single-family homes, condominiums and modular units (duplexes with certain restrictions). The program requires a five-year retention agreement with a prorated recapture of assistance. Homebuyers must complete a face-to-face state, Department of Housing and Urban Development (HUD), or certified Federal Home Loan Bank of Indianapolis (FHLBI) approved counseling program prior to the purchase of the home.
You can reach our Real Estate Lending Department at (812) 469-9928 or 1-800-800-9271.
- The homebuyer(s) must complete a counseling/education program prior to the loan closing.
- The homebuyer(s) has household income that is equal to or less than 80% of the area median income (AMI) adjusted for family size as published annually by the Department of Housing and Urban Development (HUD).
- The homebuyer(s) must contribute a minimum of $1,000 in personal cash funds toward the purchase of the home.
- The homebuyer(s) must be owner-occupants of the home to be purchased (must be primary residence). Transactions that require or involve non-occupying co-borrowers, co-owners, cosigners, or non-occupying loan guarantors are not eligible.
- Duplexes are eligible as long as the homebuyer will occupy one-half as the primary residence and 75% of the projected income generated from the other unit(s) is included in the HOP income calculation. Projected income must be included in household income whether or not homebuyer intends to rent the other unit(s).
- HOP funds may not be used to purchase a property that includes a home-based business.
- Lease/purchase arrangements and land contracts are not eligible ownership structures.
- All properties must be titled as real estate and be permanently affixed to a permanent foundation.
- All individuals in title to the property must occupy the property for which the subsidy is being provided and must sign retention documents as described above.
- The homebuyer(s) must provide all documentation to the member institution as required for participation in the program.
- The homebuyer(s) may not receive more than $250 cash back at closing. Any funds in excess of the approved mortgage amount, closing costs and cash back to the homebuyer shall be used as a credit to reduce the principal of the mortgage or as a credit toward the household’s monthly payments on the mortgage loan.
- The household’s monthly housing expense, including principal, interest, taxes, insurance, and homeowner’s dues may not exceed 35% of gross income at closing.
- The homebuyer may not acquire the property under the terms of a cash purchase.
- Purchase transactions requiring funds to be escrowed for property rehabilitation or repairs are not eligible unless the rehabilitation/repair escrow is paid outside of closing or by a third party at closing as evidenced by either the HUD-1 or other documentation.
- The homebuyer(s) may not be students with part-time or no income while in school who ordinarily would have a reasonable prospect for a substantial increase in income exceeding the AHP income eligibility limit upon entering the workforce full-time. In determining an applicant’s eligibility, the FHLBI will consider factors including but not limited to the applicant’s current student status, number of hours currently enrolled, anticipated date of graduation and field of study. Supporting documentation will be required.
- The homebuyer cannot receive for the same property more than one FHLBI grant of any kind, or more than one grant from any Federal Home Loan Bank, unless prior grants have been repaid or retention period has expired.
- Prior two years addresses and dates of residence.
- Social Security number or tax ID.
- Driver’s license or state issued identification card.
- Prior two years employment information including employer contact and dates of employment.
- Most recent W2 and pay stub for all income sources.
- Two years federal tax returns, including tax applicable schedules if you are self-employed, have rental income, farm income or additional non-W2 reported income.
- Alimony, child support or separate maintenance documentation if you wish to have it considered as basis for repaying this obligation.
- Additional information may be required such as Divorce decree (if applicable) and/or proof of extra income such as rental income, dividends, Social Security, retirement, disability, pension, or welfare (supporting documentation is required).
- Balance owed on all liens attached to the property including all mortgages as well as any home equity loans or lines of credit.
- Most recent mortgage statement (if applicable).
- Most recent property tax bill.
- Most recent hazard insurance declaration page.
- Most recent flood insurance declaration page (if applicable).
Liberty FCU mortgage lending product availability may vary based on property location.