Overview of the Homeownership Opportunities Program (HOP)
The Homeownership Opportunities Program (HOP) is part of the FHLBI Homeownership Initiatives Programs allocation. HOP helps first-time homebuyers at or below 80% of area median income (AMI) with down payment and closing costs and improves their eligibility for mortgage financing. Up to $8,000 per household may be requested if the member originates the first mortgage. Assistance is limited to $4,000 for non-member originated first mortgages and the $3 to $1 matching funds requirement is met. FHLBI members may work with eligible first-time homebuyers directly or through one or more housing organizations.
First-time homebuyers with incomes at or below 80% AMI qualify.
- FHLBI members should review the FHLBI Affordable Housing Program (AHP) Implementation Plan or the HOP Guidelines for the definition of first-time homebuyer.
- Homebuyer total housing debt may not exceed 35% of gross income
- Homebuyer must contribute a minimum of $1,000 of their own cash toward the purchase of the home
- Five-year retention requirement with a prorated recapture of assistance
- Eligible properties include single-family homes, condominiums and modular units (duplexes with certain restrictions). The FHLBI member may not request the HOP subsidy for the member’s real estate owned (REO) properties
- Homebuyer must complete required state, HUD or certified FHLBI approved counseling program prior to purchase of the home
- Up to $150 of HOP funds may be used to pay for required homebuyer counseling
Benefits to Members
- Participating FHLBI members may access up to $500,000 in HOP funds per year.
- Enhances a member’s first-time homebuyer products.
- Provides assistance to local homeownership efforts.
- Improves market competitiveness.
- Provides Community Reinvestment Act (CRA) credit, if the member is making the mortgage loan.
- Develops relationships with local housing agencies.
- Empowers first-time homebuyers, leading to deeper banking relationships.
- HOP requests are reviewed quickly – approximately 10 business days.
- Find participating FHLBI members here.
How to Participate
- All Homeownership Initiatives are available to members who have completed training and submitted the Master Agreement and Registration and Certification form found on the HOP homepage.
- Training opportunities on the Events page.
- All Homeownership Initiatives funding will be available on a first come, first served basis.
- Homeownership Initiatives Programs funding will be announced in the spring. Funds will be made available on a first-come, first-serve basis until all funds are exhausted.
- The available funding balance is updated regularly and posted on our Communities & Housing pages.
- A minimum of 35% of initiative funding must be allocated to first-time homebuyers.
Contact our Community Investment Department at 800-688-6697 or email@example.com
for more information.