Hoosiers can get $100K toward buying a home through this program
(MIRROR INDY) — An Indianapolis nonprofit is offering families up to $100,000 toward buying a house through a new program aimed at making homeownership more affordable.
The Homebuyer Choice Program pilot — launched by Kheprw Institute and Homes for All Indy — will be available to four families who complete an application and are financially qualified.
The four families will be selected through a lottery drawing at 6 p.m. Oct 9.
Others will be placed on a waitlist as the organization tries to secure more funding.
The goal of the program is long-term affordability — not just for families now, but for others who want to buy these homes in the future.
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The program will use the community land trust model to make that happen.
How does a community land trust work?
Under a community land trust, an organization owns the land, and the individual owns the home. The individual also then leases the land.
Homeowners agree to a restriction of how much they can resell the home for, meaning they should be able to build some equity while keeping the house affordable for the next buyer.
As an example, if the market purchase price of a home is $160,000 and you’re approved for a $110,000 mortgage, the community land trust grant would cover the remaining $50,000 to purchase the home.
Then, for every year you live in the home, you accrue 2% in equity of the $110,000. Over the course of 10 years, that would amount to $22,000.
The original purchase price ($110,000) plus accrued equity ($22,000) would create a price tag of $132,000 for the next buyer.
If that sounds complicated, don’t worry.
The application process should help you understand how this works.
How to apply
The Indianapolis Community Land Trust page has a full list of steps to take before you can be eligible to purchase a home.
Those include becoming a member of the organization and completing a screening form to determine income eligibility.
Buyers must have a household income less than 60% of the area median income for the Indianapolis metro area. For a family of four, for example, that would be $61,740.
Applicants also need to watch a recording of an orientation that explains the rights and responsibilities of a homeowner through the program.
The full application process must be completed by the end of the day Sept. 30.
If you’re one of the four households selected, you can work with a real estate agent to find a home anywhere in Indianapolis. Homes will be accepted into the program as long as they don’t require deferred maintenance or rehab.
Mirror Indy reporter Tyler Fenwick covers housing and labor. Contact him at 317-766-1406 or tyler.fenwick@mirrorindy.org. Follow him on X @ty_fenwick.