THE mission of CHC it to provide affordable mortgage opportunities and knowledge on how to be successful homeowners to low and moderate income residents of St. Joseph County with emphasis upon providing housing opportunities within the city limits of South Bend.
The CHC program offers homeowner assistance for applicants who meet the following requirements:
- Household income may not exceed 80% of median as adjusted for household size. Refer to chart.
- Must be a first-time homebuyer with the following exceptions: 1.) An applicant who owns a mobile home 2.) An applicant who has been displaced from their home because of a legal situation (e.g. divorce) 3.) An applicant who has relocated to this area and who has not previously owned a home in this area 4.) An applicant who has not previously owned a home within the last three years 5.) An applicant with a foreclosure history who had extenuating circumstances.
- Evidence that the applicant has attended and completed, prior to applying with CHC, a homeownership training course with credit counseling. The course must be deemed acceptable by CHC such as REWARD, CCCS, or a HUD accredited course, etc.
- Must purchase a home within the city limits of South Bend.
Second Mortgage Loan Subsidy and Post Purchase Requirements
Based on the household income, applicants may be eligible for a forgivable second mortgage loan from 5% to 20% of the purchase price through the CHC partner, 1st Source Bank. For the second mortgage to be forgivable, all applicants are required to:
- Make twelve consecutive, on-time payments within the first five years
- Attend six (6) post purchase training sessions within the first year
Both the on-time payment requirement and the post purchase training must be completed for forgiveness to start on the second mortgage loan. If the forgiveness is not earned, the borrower will be required to repay the second mortgage loan. Once the forgiveness has started, certain circumstances such as non-payment of the first mortgage loan, bankruptcy, foreclosure action, abandonment of property, etc. will stop the forgiveness. Once the forgiveness stops, borrowers will be required to repay the balance of the second mortgage loan.
Eligible Properties
All properties must be an owner-occupied, single-family unit. Condominiums are eligible for the CHC program.
The maximum improved property sale price may not exceed $95,000. The property must appraise for at least the sale price.
Property Inspection
All properties being purchased through the CHC program must meet certain standards. CHC requires that homes be brought to a condition that shall insure minimal need of additional repairs or costly maintenance during the next five years. Therefore, based upon appraiser comments and/or reports submitted by CHC staff, CHC may require, as a condition of the second mortgage loan, that improvements be made in excess of those necessary to meet code standards. An inspection for wood infesting insects is also required by a certified pest control company.
All clients are urged to obtain property inspections which are independent of the CHC inspection.
Department of Community & Economic Development
Division of Community Development
227 W. Jefferson Boulevard • Suite 1200 S
South Bend, IN 46601
574.235.9660 • Fax: 574.235.9469
