The largest private source of grant funds for affordable housing in the United States is the Federal Home Loan Bank’s Affordable Housing Program (AHP). The Federal Home Loan Bank of Indianapolis (FHLBI) offers three Homeownership Initiatives through member banks to assist in the creation and preservation of affordable homeownership in Michigan and Indiana.
As a member of the FHLBI, Eastern Michigan Bank has access to the following grant programs for home purchases and renovations:
Homeownership Opportunities Program (HOP)
- Provides assistance to first time home buyers (prior homeowners may qualify subject to certain criteria).
- Proceeds can be used for down payment and/or closing cost assistance.
Neighborhood Impact Program (NIP)
- Provides rehabilitation assistance to qualified homeowners. NIP funds are for home repair including replacement of roofs, windows, furnaces, etc.
Accessibillity Modifications Program (AMP)
- Provides funding for accessibility modifications and minor home rehabilitation for both income-eligible senior homeowners and owner-occupied households with a person(s) with a permanent disability.
In general, FHLBI grants do not accumulate interest or require monthly payments. NIP/HOP grants must be repaid if the customer sells (or in some cases refinances) their home within five years of receiving the grant.
Homeownership Initiatives funding is available on a first come, first served basis, until the current year’s allocation has been exhausted or the program year is closed. Households cannot receive, for the same property, more than one FHLBI grant of any kind for the same property, or more than one grant from any Federal Home Loan Bank, unless prior grants have been repaid or retenton period has expired
To learn more, please contact an Eastern Michigan Bank mortgage lender today.