Indiana Housing and Community Development Authority (IHCDA) Programs:
Reviewed July 31, 2026IHCDA offers 30‑year fixed mortgages with down payment assistance through approved lenders. The two most commonly used IHCDA products are First Place (the more generous DPA option) and Next Home (repeat‑buyer friendly and MCC‑compatible options). Income & purchase limits vary by county; mandatory homebuyer education is required for many DPA options. Check IHCDA for current rates, county limits, and reservation rules: IHCDA Homeownership Programs and IHCDA Income & Acquisition Limits (effective May 25, 2026).
IHCDA First-Place & Next-Home (short cheat sheet):
- First Place — DPA may be provided as a second mortgage; the amount cannot exceed 6% of the lower of purchase price or appraised value. See the IHCDA First Place program guide for full rules and county acquisition limits: IHCDA First Place Program Guide.
- Next Home — DPA commonly offered as 2.5% or 3.5% of the lower of purchase price or appraised value depending on the option and purchase price. Check the Next Home program guides for exact caps and MCC rules: IHCDA Next Home (FHA) Program Guide and IHCDA Programs landing page above.
- Who qualifies: Usually first‑time buyers (no ownership in the past three years) unless buying inside a designated targeted census tract or using options that waive the first‑time rule — see IHCDA program guides for exceptions and targeted‑area rules.
Typical borrower/readiness checklist (approximate ranges):
- Income: county‑specific limits — look up IHCDA Income & Acquisition Limits for exact numbers. IHCDA limits.
- Credit scores: IHCDA defers to the lender and master servicer; in practice expect conventional programs to prefer mid‑600s and FHA to accept lower scores. FHA guidance commonly references 580+ for the 3.5% down tier (scores 500–579 often require 10% down); lenders frequently add overlays. See HUD for FHA background. HUD — Buying a Home (FHA resources).
- Debt‑to‑income (DTI): commonly ≤45% for many lenders (some loan types and compensating‑factor scenarios allow up to ~50% under AUS exceptions or manual underwriting).
- Homebuyer education: required for many IHCDA DPA options — complete an IHCDA‑approved course via your lender or a HUD‑approved counselor.
Down Payment Assistance (DPA) — how it usually works
- IHCDA DPA is typically a deferred or forgivable second mortgage (0% interest; repayment on sale, refinance, or at the end of the affordability period — exact terms vary by program). See program guides for exact language. IHCDA Programs.
- First Place: up to 6% of the purchase price or appraised value. Next Home: commonly up to 2.5% or 3.5% depending on the option (Next Home FHA = 3.5%). Confirm current caps in the IHCDA guides. First Place guide, Next Home FHA guide.
- Local nonprofits and municipal programs can often stack additional DPA. See local program pages and your lender for stacking rules.
Local programs (examples — confirm availability/funding):
Indianapolis / Marion County
INHP (Indianapolis Neighborhood Housing Partnership): INHP runs down payment assistance and specialty lending programs for Marion County. INHP describes DPA awards in the thousands of dollars and publishes county AMI charts and eligibility guidance — confirm current maximums and any employer anchor caps on INHP’s site: INHP Down Payment Assistance.
Fort Wayne / Allen County
Hoosier Homes (Club720): A regional DPA initiative administered with Club720 and local partners. Program materials show up to 5% in down payment assistance in participating counties; check the Club720 portal for county eligibility and current rules: Hoosier Homes / Club720.
Evansville / Vanderburgh County
HOPE of Evansville First-Time Homebuyer Program: Local nonprofit program offering counseling and buyer assistance. Public site has limited program detail — confirm exact match schedules, income limits, and purchase price caps directly with HOPE: HOPE of Evansville — Homeownership.
Other common loan options:
- USDA Rural Loans: No‑down options in eligible rural areas (area & income limits apply). Use USDA’s eligibility map and state RD pages to check location and income rules. USDA Rural Development — Single Family Housing.
- VA Loans: 0% down for eligible veterans and active duty borrowers; confirm entitlement and funding‑fee details with the VA or your lender. VA Home Loans (VA.gov).
- FHA Loans: 3.5% minimum down for many borrowers (commonly 580+ credit for the 3.5% tier; lower scores typically require higher down payments); lenders may add overlays — check HUD/FHA guidance and your lender. HUD — Buying a Home (FHA resources).
Bottom line: IHCDA remains the primary state source for DPA in Indiana (First Place, Next Home, First Step, etc.). Local nonprofits, FHLBank products such as Launch and HomeBoost, and municipal programs can often be stacked with state DPA — confirm stacking rules and lender overlays with your participating lender.
Always verify current income/purchase limits, DPA maximums, reservation windows, and program availability directly with IHCDA, the local program administrator, or a participating lender before committing.
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