Lifting the ‘barrier of downpayment funds’: Calhoun County unveils Home Ownership Assistance Program

Editor’s note: This story is part of Southwest Michigan Second Wave’s On the Ground Calhoun County series.

Calhoun County is investing $3 million in foreclosure funds through a partnership with Independent Bank to generate down payment and closing cost assistance for eligible homebuyers, turning past foreclosures into new opportunities for homeownership.

Funds collected through the foreclosure process in Calhoun County are being repurposed to get people into home ownership, not out of it, says Calhoun County Treasurer Melinda Weaver.

Through a partnership with Independent Bank, headquartered in Grand Rapids, the County has invested $3 million in foreclosure funds with the bank to launch the new Calhoun County Homebuyer Assistance Program. Weaver says the County’s investment is in the form of a 12-month CD (Certificate of Deposit) with Independent Bank with a 3.8 percent interest rate.

“Here at the county, we invest a lot of dollars and bring that money back to the community,” she says. “One of the statutes as treasurer is to invest county dollars.”

Through the Homebuyer Assistance Program, qualified applicants in Calhoun County will receive $6,000 from the County, generated by the interest on that original investment, for down payment assistance and $2,000 from the Independent Bank to cover closing costs. In addition, the buyer must contribute at least $1,000 toward the purchase of the home.

To qualify for the Homebuyer Assistance Program, applicants must:

• Purchase a primary residence located in Calhoun County;
• Have a household income at or below 120% of the county’s Area Median Income (AMI), which was $63,177 in 2024, according to the U.S. Census Bureau.
• Attend pre-purchase homebuyer counseling;
• Secure financing through Independent Bank; and
• Contribute at least $1,000 toward the purchase of the home.

“Sometimes covering those closing costs can be a make-or-break situation for buyers,” Weaver says.

Independent Bank launched the program in Oakland County in 2025, says Maggie Harma Justin, Residential Mortgage Loan Officer with Independent Bank’s Kalamazoo office. The breakdown at that time was $5,000 from the county and $2,000 from the bank, with the buyer putting in a minimum of $1,000.

“We work with each of the local municipalities to help come up with grant funds,” she says. “These funds are available for low- to moderate-income households to be able to help them purchase a home. The grant can pair with any loan program.”

The Oakland County funds were quickly depleted as were additional funds the county put in to keep the program going, Harma Justin says.

“It goes to show you how wildly popular these grants are,” she says. “For so many people, the barrier is the down payment funds.”

In addition to Calhoun County, Independent Bank has active grants through a Home Ownership Assistance Program being offered in Kalamazoo County.

Weaver says she learned about the program from Tom Whitener, Kalamazoo County Treasurer. They were part of a meeting in October of regional county treasurers.

After expressing interest in the Home Ownership Assistance Program, Weaver says Whitener had Independent Bank reach out to her.

“Everywhere we go throughout the state and even in Calhoun County, housing is an issue,” Weaver says. “We wanted to do something to help people who qualify for our program with assistance with their down payment.”

Harma Justin says each county uses part of their budget and invests that to produce grants.

“They put money into a CD, and the interest accrued is what funds the grants. They’re still earning a little bit of money on the interest, but the majority is funding the grants,” she said.

In 2025, Weaver says the County earned about $300,000 from foreclosures. She says they’d rather keep people in their homes and not have to deal with vacant or blighted properties and have programs in place to work with people.

The Home Ownership Assistance Program will reinforce these efforts.

Representatives with Independent Bank will meet with eligible applicants, she says.

“Home ownership and giving back to our community is so important to us,” Harma Justin says of Independent Bank. “Boosting home ownership and making the American dream come true for us is so important to us.”

Homeownership is a key part of building stable families and strong communities, Weaver says.

“This partnership allows us to provide meaningful assistance to buyers who are ready to take that step but need help overcoming upfront costs,” she says. “The program is intended to support responsible, informed homeownership while expanding access to housing opportunities throughout Calhoun County.”Residents interested in learning more or beginning the application process should contact Independent Bank at (269) 491-3049 or visit HERE.