The Hardest Hit Fund Program
Can I apply?
The HHF program closed in 2021.
If you received assistance through HHF, you may find out about your forgivable loan by sending a message to: HHF@ihcda.in.gov.
Will I have to pay back the assistance I receive from Indiana’s HHF?
Although HHF is granted in the form of a loan, you do not make loan payments or pay interest. After 10 years, the loan will be completely forgiven. If you sell your home before the 10 years have passed, repayment of the remainder of the forgivable loan will come from the proceeds of the sale after the first mortgage has been paid. The longer you keep your home, the less you will have to pay back.
| Term (in years from closing date) | Amount Due Back to IHCDA |
|---|---|
| Years 1 through 5 | 100% |
| Year 6 | 80% |
| Year 7 | 60% |
| Year 8 | 40% |
| Year 9 | 20% |
| Year 10 | 0% |
Can I refinance my home after receiving HHF assistance?
Yes. HHF does not prevent you from refinancing your home. However, you should be aware of the following HHF policy:
- “NO CASH OUT” REFINANCE: If you refinance your home ONLY to get better loan terms than your current mortgage offers (such as a lower interest rate or payment), then IHCDA will sign an agreement with your lender to have the HHF loan put back into second place behind your refinanced loan (this is called a Subordination Agreement).
- “CASH OUT” or “LINE OF CREDIT” REFINANCE: If you refinance your home in order to receive money (“cash out” some or all of the value of your home), then you must pay back the amount of HHF assistance that you received; OR, if you do not wish to pay back HHF, then IHCDA will not sign a Subordination Agreement and the HHF loan will be placed ahead of the refinanced loan (most lenders will not agree to refinance your loan without a Subordination Agreement).
PLEASE PROVIDE THIS INFORMATION TO YOUR POTENTIAL REFINANCE LENDER BEFORE YOU SIGN ANY NEW LOAN DOCUMENTS. The new lender should understand what this policy means and what effect it would have on their refinance loan. If you have additional questions, please contact the agency that assisted in getting you the HHF assistance.