IHCDA Now Accepting Applications for the Indiana Homeowner Assistance Fund 


The Indiana Housing and Community Development Authority is now accepting applications for Indiana Homeowner Assistance Fund (IHAF). The funding for this program is provided by the U.S. Department of Treasury through the American Rescue Plan Act, which awarded almost $168 million to the State of Indiana. 

“The Indiana Homeowner Assistance Fund (IHAF) is designed to promote housing stability and prevent foreclosures across the Hoosier state.” Lt. Governor Suzanne Crouch said. “We are pleased to work with our network of program partners and participating lenders to provide this assistance.”

For more information on getting a grant and also learning about refinance programs, take a look at this.

The maximum assistance is limited to one-time assistance of up to $35,000.00 per household, paid directly to the mortgage lender, loan servicer, or other approved entity. Any assistance received through the IHAF program for assistance with eligible home-related expenses is not considered taxable income for federal tax purposes.

Who Is Eligible for the Indiana Homeowner Assistance Fund?

To qualify for the IHAF, applicants must meet certain criteria such as:

  • Be a homeowner who is an owner-occupant of a single-family home, condominium, 2-, 3-, or 4-family dwelling, or manufactured home permanently affixed to a property
  • The home must serve as a primary residence in Indiana
  • Have an income equal to or less than 150% of the Area Median Income or 100% of the National Median Income ($79,900.00), whichever is greater
  • Experienced a financial hardship such as a reduction in income or increased living expenses associated with the COVID-19 pandemic after January 21, 2020. This can include but is not limited to job loss, reduction in work hours, increased costs due to childcare, illness, or the need to care for a family member 
  • The homeowner can be in foreclosure or bankruptcy

Funds from this program can be used to cover:

  • monthly mortgage payments (the program will pay your first mortgage payments and related expenses)
  • monthly mortgage payments plus loan reinstatement (if you’re behind on mortgage payments, the program will pay to bring the loan current, followed by temporary monthly payments to cover your first mortgage payments or related expenses)
  • reinstatement only (if you’re behind on mortgage payments, including if you’re in forbearance, but your monthly mortgage payment is otherwise affordable based on your current monthly household income, the program will provide assistance to bring your loan or related expenses current).

Eligible applicants can get up to six months of monthly mortgage payments under the monthly assistance program. These funds can also be used for homeowners’ association fees, property owners’ association fees, condo owners’ association fees, county taxes, and homeowners’ insurance. Assistance is structured as a five-year, forgivable loan that a junior lien on the property secures. The first 20% is forgiven 12 months after the loan closes. The rest of the loan is forgiven in the amount of 20% each year. If you sell the property before the loan is fully forgiven, all net sale proceeds, up to the full outstanding principal balance at the time of sale, will become due and payable.

For more information on getting a grant and also learning about refinance programs, take a look at this.

Residents of all 92 Indiana counties are eligible for assistance if they meet all other eligibility requirements. Applications can be send here. Click here to get a list of the documents you’ll need. The timeline varies by the applicant, but homeowners should expect approval to take at least 30-45 days.

Chris has been in the marketing industry for well over a decade. Chris loves writing about anything related to saving money. A passion for teaching people through writing has given him a unique opportunity to use his skills in the marketing industry. In his spare time he likes spending time with his family. training his new puppy, and taking long road trips to places like Banff & Lake Louise, Alberta.
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