Indiana First Step

How does paying back Indiana First Step work?

Never forgiven: it's a deferred loan. All of it must be repaid if you sell the home, move out, refinance (unless through IHCDA) or finish paying your main home loan.

You won't owe anything month to month with a deferred loan. But once the first mortgage is paid off, or you sell or refinance, every dollar is due.

Indiana First Step: who qualifies?

• Determined by IHCDA's chart of purchase price and income limits (from May 25, 2026).
• Only first-time buyers: yes, but some exceptions apply.
• You take it out together with a conventional or FHA 30-year fixed-rate home loan.

Look up the exact limit, based on your county and household size, on the income chart from the agency. See the median income for your area with our HUD income limits tool.

Applying for Indiana First Step

1. The Indiana Housing and Community Development Authority sends this help through its approved lenders. You apply with one of them at the same time as your mortgage.
2. The lender reviews your income, credit and the home under the program's rules, then reserves the money for you.
3. At closing, the money is paid toward your closing costs and down payment.

Check Indiana Housing and Community Development Authority's page for First Step for the full rules and whether it's taking applications. You can also choose a lender from the agency's participating lender list.

More Indiana programs for first-time buyers

• Indiana Next Home:

  A deferred loan for as much as 3.5% of the price.

Every Indiana first-time home buyer program · Down payment assistance in every state