Indiana first-time home buyer programs
Indiana Housing and Community Development Authority list 2 programs that help buyers in Indiana with the down payment or closing costs. Amounts and terms are shown as the agency publishes them.
- Programs from the agency
- 2
- Biggest amount listed
- 4% of the loan
- First-time buyers only
- 1 of 2 programs
- Income caps
- Set per program
Down payment assistance programs in Indiana
| Program | Amount | Grant or loan | Income limit | First-time buyers only |
|---|---|---|---|---|
| First Step. With an FHA or conventional 30-year fixed-rate mortgage. | Up to 4% of the price | Deferred loan: Never forgiven. You repay all of it when you sell, refinance (unless through IHCDA), pay off your main home loan or move out. | Set by IHCDA's income and purchase price limits chart (from May 25, 2026). Agency income chart | Yes, with exceptions |
| Next Home. With an FHA or conventional 30-year fixed-rate loan. | Up to 3.5% of the price | Deferred loan: Never forgiven. You repay all of it when you sell, refinance (unless through IHCDA), pay off your main home loan or move out. | Set by IHCDA's income limits chart (from May 25, 2026). Agency income chart | No |
Usually, "first-time buyers only" means you haven't owned a home during the past three years, though every program sets a rule of its own. The name of each program links to a Indiana Housing and Community Development Authority page that says whether applications are open right now. The agency also maintains its own list of participating lenders. Compare down payment assistance programs across all states, or ask a lender that works with Indiana's programs.
How do you repay Indiana's programs?
- Deferred loan: nothing to pay each month, but the full amount comes due when you sell, refinance or pay the first mortgage off.
How does your income compare with Indiana's caps?
Every program has its own income cap, which the table shows, and the exact chart is on that program's agency page. Use the HUD income limits lookup (FY2026) to find the figure for your county and household size. If a program relies on its own county chart or Freddie Mac's, the result can differ from HUD's number, and the agency's chart decides.
| HUD area | Median family income | HUD low-income limit |
|---|---|---|
| Indianapolis-Carmel | $110,300 | $88,250 |
| Gary | $100,900 | $80,700 |
| Louisville | $99,000 | $79,200 |
| Evansville | $93,000 | $74,400 |
| Terre Haute | $71,400 | $67,850 |
HUD uses about 80% of the median as a starting point. Its own caps can hold that number down, including a yearly cap on increases, so the low-income limit is under 80% in a few areas.
Talk to a lender that works with Indiana programs
These programs are paid out through the agency's approved lenders, so the lender is your next step. Tell us where you're buying and a lender that works with Indiana's programs can explain which ones fit you.
Rather not call? Send your details and the lender will reach you.
Are you buying near a state border?
Illinois, Kentucky, Michigan, Ohio or programs for all 50 states plus DC.