First-Time Home Buyer Programs in Indiana

Indiana Housing and Community Development Authority (IHCDA) Programs:

IHCDA 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 (Income & Acquisition Limits).

IHCDA First-Place & Next-Home (short cheat sheet):

• First Place — DPA up to 6% of the lesser of purchase price or appraised value (structured as a second mortgage with program-specific forgivability/affordability periods). See IHCDA’s First Place program guide for full rules and county acquisition limits: IHCDA First Place Program Guide.
• Next Home — DPA commonly available at 2.50% or 3.50% depending on loan type and caps; the FHA Next Home option provides up to 3.5% DPA. Check the Next Home program guides and MCC rules: IHCDA Next Home Program Guide (FHA) and IHCDA Programs.
• Who qualifies: Usually first‑time buyers (no ownership in past three years) unless buying inside a designated targeted census tract or using program options that waive the first‑time rule — see program guides for the exact exceptions and targeted‑area rules.

Typical borrower/readiness checklist (approximate ranges):

• Income: county‑specific limits — look up IHCDA’s 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. HUD/FHA guidance commonly references 580+ for the 3.5% down FHA tier (scores 500–579 often require 10% down); lenders frequently add overlays. See HUD resources for FHA rules. 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 manual underwriting or AUS exceptions).
• 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 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 guide (FHA).
• Local nonprofits, municipal programs, and FHLBank products can often stack additional DPA — availability and stacking rules vary by lender and program.

Local programs (examples — confirm availability/funding):

Indianapolis / Marion County

INHP (Indianapolis Neighborhood Housing Partnership): INHP runs down payment assistance and specialty lending programs (Anchor/Launch partners) for Marion County. Standard INHP DPA has commonly been in the several‑thousand dollar range, while some Anchor packages list higher caps (anchor‑specific). Confirm current maximums and eligibility on INHP’s site: INHP Down Payment Assistance (see Anchor materials for higher anchor‑specific caps).

Fort Wayne / Allen County

Hoosier Homes (Club720): A regional DPA initiative administered with Club720 and local partners. Program materials show up to about 5% in down payment and/or closing cost assistance in participating counties; participation and income limits vary by community — check the Club720/Hoosier Homes portal for county eligibility and current rules. Hoosier Homes / Club720.

Evansville / Vanderburgh County

HOPE of Evansville First‑Time Homebuyer Program: Local nonprofit program that matches buyer contribution (minimum buyer contribution commonly $1,000) and documents a match up to $15,000 for the city program (price limits noted on HOPE’s page as of early 2026). Confirm current price limits and any differing grant programs directly with HOPE. HOPE of Evansville — First‑Time Home Buyer.

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.
• VA Loans: 0% down for eligible veterans/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 and FHLBank/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.

Seeking Agents® connects you with Indiana agents experienced in these programs who compete to offer reduced commissions or added services—free for buyers/sellers.