Gary City Community Development outlines ARPA-funded down-payment assistance and buyer guidance

City of Gary Community Development staff told attendees at a public information session that an ARPA-funded down-payment assistance program is available to help local residents buy homes in Gary City and to promote owner-occupancy in neighborhoods.

"It's time for us to take that city back," the staff member said, introducing the program and urging residents to pursue homeownership. The staff member said the program is funded through federal American Rescue Plan Act (ARPA) dollars and named eligible groups that include first responders, police, fire, EMS, hospital workers, City of Gary employees, Gary Sanitary District employees, workers at the Chicago airport, health-care workers and teachers.

The staff member said other residents may receive assistance equal to up to 6% of a home's purchase price, with a maximum of $10,000, while noting that in response to a question about nurses the speaker affirmed that qualifying first responders may receive $30,000. "Yes, you do," the speaker said when asked whether a nurse would get $30,000. Homes must be located in Gary City and fall within qualifying census tracts to be eligible; the staff noted that some neighborhoods (examples named in the session) do not qualify.

Applicants must be preapproved for a mortgage. Lenders provide preapproval letters and borrower information to the city so staff can begin processing applications; the staff said cases are coordinated with a HUD counselor (named in the session as Johnny Radling). The city requires properties to appraise at 100% of the sales price, and staff suggested a typical processing target of about 45 days, though faster turnarounds have occurred when documentation is complete. Staff reported seven households had progressed through the program since February and that more than $318,000 had been spent year-to-date.

Maria Thomas, who introduced herself as a team lead with Christies International, urged residents to participate and described Gary City as an affordable market with active development. She cited a recent median price near $140,000, said desirable homes often range from about $200,000 to $250,000, and noted a sold-to-list ratio near 97.2% with roughly 26 days on market.

Wendy Christie, who said she owns a Cross Country Mortgage branch that works with Gary City borrowers, described how lenders evaluate credit and underwriting. "The mortgage credit score is the hardest rated credit score," Christie said, explaining lenders use TransUnion, Experian and Equifax and typically take the mid score of the lowest borrower on a loan. She recommended that prospective buyers ask lenders to use soft credit pulls for prequalification and offered practical tips to improve mortgage pricing, including managing payment history, credit utilization and establishing installment trade lines where needed.

Staff and lenders encouraged attendees to contact participating lenders and the Community Development Department to begin preapproval and application steps. The session emphasized owner-occupancy requirements and permitted uses of grant funds (down payment, closing costs and rate buydowns).