Update – Federal Home Loan Bank of Indianapolis Announces Return of Popular HomeBoost Down Payment Assistance Program with $5 Million Allocation

INDIANAPOLIS, July 19, 2024 (GLOBE NEWSWIRE) — After depleting $2.5 million in just two months in 2023, Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis or the Bank) is relaunching the HomeBoost down payment assistance program with double the allocation this year – $5 million to help with down payment, closing costs and counseling for minority and first-generation first-time homebuyers.

Launched in 2023, the special purpose loan program helped 159 households in Indiana and Michigan become first-time homebuyers, results that underscored the widespread need for such assistance across the Bank’s district.

This year, HomeBoost is making more money available and offering expanded eligibility criteria and maximum financing amounts. HomeBoost will provide up to $25,000 in down payment and closing and counseling assistance to first-time homebuyers who identify as Black or African American, Asian, Hispanic, American Indian or Alaska Native, and/or Native Hawaiian or other Pacific Islander, or who qualify as first-generation homeowners. Eligible households must have a total household income at or below 120% of the area median income and intend to purchase a primary residence in Indiana or Michigan.

According to HUD’s Office of Fair Housing and Equal Opportunity on December 7, 2021, “the Black-white homeownership gap is wider today than it was in 1968, when the Fair Housing Act took effect.” The Bank’s Indiana and Michigan district is no different from national trends.

Additionally, a growing body of research has shown the profound effect that parental homeownership can have on young adults. Researchers in a 2018 study on intergenerational homeownership conducted by the Urban Institute found that parental homeownership had a significant correlated effect on young adult homeownership: Even after controlling for income, gender, race, marital status, and other common factors known to affect homeownership rates, young adults whose parents owned a home were statistically more likely to own or prioritize homeownership.

“The success of last year’s pilot clearly demonstrates the need and desire for programs like this in Indiana and Michigan,” said MaryBeth Wott, senior vice president of community investment and strategic planning. “This program is a critical tool our members can use to help close the homeownership gap in their communities and across our district. The Bank is pleased to play its part in helping eligible households achieve their homeownership goals.”

Community Investment staff will host a program introduction and training webinar for member financial institutions and relevant community stakeholders on July 24, 2024. Interested parties can register for the webinar on the Bank’s website.

The story continues

The program will launch in full on August 14, 2024. Households will be assisted on a first-come, first-served basis until funds are exhausted. Only participating FHLBank Indianapolis member financial institutions may submit HomeBoost grant applications on behalf of eligible households.

To learn more about HomeBoost and other community and housing programs offered by the Bank, visit www.fhlbi.com.

Media Contacts:
For more information, contact Katherine Marshall, Corporate Communications Specialist, at [email protected].

Federal Home Loan Bank of Indianapolis: Building Partnerships. Serving Communities
FHLBank Indianapolis is a regional bank of the Federal Home Loan Bank System. FHLBanks are government-sponsored enterprises created by Congress to provide access to low-cost financing to their member financial institutions, with a focus on providing solutions that meet the housing and small business needs of members’ customers. FHLBanks are privately capitalized and funded and receive no appropriations from Congress. One of 11 independent regional cooperative banks in the United States, FHLBank Indianapolis is owned by its institutional members in Indiana and Michigan, including commercial banks, credit unions, insurance companies, thrifts and community development financial institutions. For more information about FHLBank Indianapolis, visit www.fhlbi.com and follow the bank on LinkedIn, Instagram and X at @FHLBankIndy.

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