If you’re interested in purchasing a home in the City of East Chicago, the Department of Redevelopment and the leadership of Mayor Anthony Copeland is offering down payment assistance in East Chicago for those interested in purchasing and becoming home owners. The down payment assistance is an initiative intended to provide an opportunity for individuals interested in purchasing a single family home to increase home ownership in the City of East Chicago.
New Homes Assistance
The City of East Chicago provides a zero interest second mortgage of up to $25,000 to assist with the down payment assistance for the purchase of a newly constructed home in the City of East Chicago. The second mortgage is a ten year forgivable loan, with equal percentages forgiven each year until year ten . Conversely, if the home is sold anytime during the ten year period then a pro-rated amount of the forgivable loan shall be repaid to the City of East Chicago at the time of sale. In addition, employees of the City of East Chicago are eligible for up to $30,000 in down payment assistance under this program.
Pre-Existing Homes Assistance
For individuals interested in purchasing a pre-existing home, the City of East Chicago provides a zero interest second mortgage of up to $10,000 toward the purchase of a reconstructed or existing home located in the City of East Chicago. The down payment will be a five year forgivable loan, with equal percentages forgiven each year until five years after the loan closes. Nonetheless, if the property is sold within the five year period, then a pro-rated amount of the forgivable loan shall be repaid to the City of East Chicago at the time of sale. In addition, employees of the City of East Chicago are eligible for up to $15,000 in down payment assistance under this program.
Homebuyer Financial Education Workshop
Prospective applicants interested in purchasing a home in East Chicago must complete an eight hour Homebuyer Financial Education Workshop program provided through the Department of Redevelopment prior to receiving the down payment assistance.
The Homebuyer Financial Education Workshop is designed to prepare homebuyers for home ownership, provide credit counseling, budgeting and savings, credit, mortgages and loans, purchasing a home, closing on a home and home maintenance.
