A HOMEREADY MORTGAGE is an affordable low down payment mortgage product designed for creditworthy low- to moderate-income borrowers, with expanded eligibility when financing homes in low-income communities.*
- Down payment as low as 3%** with up to 97% Loan to Value financing for home purchase or refinance
- Flexible sources for down payment with no minimum contribution requirement from borrower’s own funds
- Homeownership education and advising options empower borrowers to become successful homeowners
- Local processing and underwriting
- Low Lender closing costs
Competitive rate and payment*
No mortgage insurance cost to borrower/buyer
First Time Homebuyers
The Homeownership Opportunity Program (HOP) grant from FHLBank Indianapolis helps first-time homebuyers with downpayment and closing cost assistance. Funds are available on a first-come, first-served basis.
Qualifying households could receive up to
$8,000 in assistance with a Merchants Mortgage
To qualify for a HOP grant you must:
be a first-time homebuyer * at or below 80% area median income;
purchase a single-family home, condominium, duplexes, or modular unit;
contribute a minimum of $1,000 towards the purchase of the home;
complete a required state, HUD, or FHLBank Indianapolis-approved homebuyer counseling course;
– up to $150 of HOP funds can be used to cover the cost of counseling
not allow total housing debt to exceed 35% of total household gross income
* Definition of first-time homebuyer can be found in the AHP implementation plan on the fhlbi website.
*Borrowers’ income must be at or below 100% of the annual HUD Area Median Income (AMI) for the property location. No income limits apply if the property is located in an underserved area. For a sample loan amount of $150,000 for purchase or refinancing of a single-family primary residence with an estimated property value of $154,500 at 4.125% interest rate, the APR is 4.178%. The monthly payment schedule would be 359 payments of $726.97 and 1 payment of $724.48 excluding applicable real estate taxes and homeowner’s insurance premiums. NMLS#: 554119.
**97% Loan To Value (LTV) financing available for 10, 15, 20 or 30 year fixed rate term.