Homeowners who have been impacted economically by the COVID-19 pandemic can still get mortgage assistance at the state and local level as programs find new money to meet demand.
Locally, the Indy Affordable Modification Program (IndyAMP) has invested $2.6 million since starting last year and is in the process of getting another grant from the city to continue its work.
The project, run by Renew Indianapolis and its partners, isn’t a standard mortgage assistance program. Instead of getting money to put directly toward their mortgage, homeowners who have been affected by pandemic refinance — including late payments and fees — below market rate to save money.
The program is open to Marion County homeowners who owe between $20,000 and $200,000 on their home. It is administered in partnership with Merchants Bank of Indiana, Stock Yards Bank & Trust and Woodforest National Bank.
Renew Indianapolis CEO Steven Meyer said the program has assisted 19 households, and homeowners have saved an average of $170 on their monthly payment. Over a 30-year period, that amounts to about $61,000.
Meyer said the program received 146 applications from 26 ZIP codes. About 45% of loans went to households at or below 80% area median income.
Direct mortgage assistance programs were already in place, Meyer said, so the benefit of helping people refinance is it can create long-term affordable housing. He said the plan is to continue the program even after the pandemic.
IndyAMP is a revolving loan fund, so as homeowners repay their mortgage, the money goes back into funding the next round of loans.
Meyer said Renew has applied for more funding from the city — $720,000 this time — but isn’t sure when the money might be approved or available. Learn more about IndyAMP at indyamp.org.
At the state level, the Indiana Housing and Community Development Authority (IHCDA) recently announced it received almost $167 million for mortgage assistance as part of the American Rescue Plan Act.
Along with mortgage payments, the Indiana Homeowner Assistance Fund can be used for property taxes, homeowners insurance, and homeowner or condominium fees. The program is a continuation of the Hardest Hit Fund, which ended in the summer of 2021.
To qualify, applicants must have an income equal to or less than 150% area median income, adjusted for household size, or 100% of the national median income, whichever is greater. Applicants must also have experienced a financial hardship after Jan. 21, 2020, associated with the COVID-19 pandemic.
Learn more about the program and apply at 877gethope.org or by calling 877-GET-HOPE.
The maximum each household can receive is capped at $35,000, which is paid directly to the mortgage lender.
IHCDA spokesperson Lauren Houck said it’s too early to estimate how long the money will last or how many households the program may help, since not every household will need all $35,000.
The agency created a needs index, Houck said, to determine which counties will likely need the most assistance. It takes into account factors such as household income and area demographics.
Contact staff writer Tyler Fenwick at 317-762-7853 or email at tylerf@indyrecorder.com. Follow him on Twitter @Ty_Fenwick.
