Indiana Housing and Community Development Authority (IHCDA) Programs:
Updated March 2026IHCDA provides 30-year fixed-rate mortgages at below-market rates and down payment assistance for first-time homebuyers (no primary residence in past 3 years, waived in targeted areas) through approved lenders. No statewide sales price limit; income limits vary by county (higher in targeted areas). Mandatory homebuyer education required. Verify current rates, income/purchase limits, and targeted areas at in.gov/ihcda or contact an IHCDA-approved lender. Programs remain active with strong funding in 2026.
IHCDA First-Time Homebuyer Mortgage Programs:
Eligibility: First-time homebuyers or those not owning in past 3 years (waived in targeted areas); low-to-moderate income.
Offerings: 30-year fixed-rate mortgages (FHA, VA, USDA, or conventional) with competitive below-market rates and low down payment options.
Requirements:
- Income ≤ county-specific limits (varies by household size; e.g., ~$98,000–$140,000+ in high-cost areas like Marion/Hamilton; lower in rural counties—check IHCDA income chart).
- Minimum credit score: 620+ (varies by loan type).
- Debt-to-income ratio typically ≤45% (up to 50% with compensating factors).
- Mandatory homebuyer education (free via IHCDA-approved counselors or online courses).
Down Payment Assistance (DPA) Options:
Next Door Down Payment Assistance: Up to 4% of purchase price (max ~$10,000–$15,000 depending on loan/program) as deferred second mortgage (0% interest, no monthly payments; repayable on sale/refinance/payoff).
Forgivable DPA (in select programs): Portions forgiven after occupancy period (e.g., 5–10 years).
Eligibility: Must pair with IHCDA first mortgage; income-based; minimum buyer contribution often required.
Indiana Heroes Program:
Description: Enhanced DPA and rate benefits for teachers, firefighters, law enforcement, healthcare workers, military/veterans, and other public servants.
Eligibility: Qualify for standard IHCDA mortgage + proof of eligible profession; income limits apply.
Local Programs (Examples):
County/city programs offer additional deferred/forgivable assistance—funding limited; verify local housing authorities or IHCDA partners.
Indianapolis / Marion County
Indianapolis Homebuyer Assistance Program: Up to $15,000+ deferred/forgivable for down payment/closing in city limits; income-based (≤80–120% AMI); counseling required—check indy.gov/housing.
Fort Wayne / Allen County
Fort Wayne Homeownership Assistance: Assistance through regional partners (often SHIP-like funds) for low/moderate-income buyers; education required—see cityoffortwayne.org.
Evansville / Vanderburgh County
Evansville Homebuyer Programs: Local grants/loans (up to $10,000–$15,000 deferred) for eligible first-time buyers—check local housing authority.
Additional Information:
- USDA Loans: 0% down in eligible rural Indiana areas; income limits apply.
- VA Loans: 0% down for eligible veterans/active-duty military.
- FHA Loans: 3.5% minimum down (580+ credit; 10% if below 580).
Indiana programs emphasize flexible DPA and targeted support—always confirm with an IHCDA-approved lender or in.gov/ihcda. Seeking Agents® connects you with Indiana agents who understand these programs and compete to offer reduced commissions or added services—free for buyers/sellers!
View First-Time Home Buyer Programs for: Iowa
Frequently Asked Questions
What first-time home buyer assistance is available in Indiana?
Indiana buyers may be eligible for statewide assistance, local programs, and federal financing options such as FHA, VA, and USDA loans. Program benefits and rules vary depending on income, location, and lender participation.
What first-time home buyer assistance is available in Indiana?
Indiana buyers may be eligible for statewide assistance, local programs, and federal financing options such as FHA, VA, and USDA loans. Program benefits and rules vary depending on income, location, and lender participation.
Who qualifies as a first-time home buyer in Indiana?
Many Indiana programs define a first-time buyer as someone who has not owned a primary residence in the last three years. Some programs may also allow repeat buyers or include other exceptions.
Who qualifies as a first-time home buyer in Indiana?
Many Indiana programs define a first-time buyer as someone who has not owned a primary residence in the last three years. Some programs may also allow repeat buyers or include other exceptions.
How much down payment assistance can Indiana buyers receive?
Indiana down payment assistance may be available as grants, deferred loans, or second mortgages. The exact amount depends on the program, the borrower’s profile, and available funding.
How much down payment assistance can Indiana buyers receive?
Indiana down payment assistance may be available as grants, deferred loans, or second mortgages. The exact amount depends on the program, the borrower’s profile, and available funding.
Do Indiana buyer programs require homebuyer education?
Many Indiana first-time buyer programs require homebuyer education before closing. These classes help buyers understand financing, homeownership budgeting, and the mortgage process.
Do Indiana buyer programs require homebuyer education?
Many Indiana first-time buyer programs require homebuyer education before closing. These classes help buyers understand financing, homeownership budgeting, and the mortgage process.
Should I work with an Indiana agent who understands buyer assistance programs?
Yes. A knowledgeable Indiana real estate agent can help you identify homes that fit program requirements, coordinate with lenders, and make better-informed decisions throughout the buying process.
Should I work with an Indiana agent who understands buyer assistance programs?
Yes. A knowledgeable Indiana real estate agent can help you identify homes that fit program requirements, coordinate with lenders, and make better-informed decisions throughout the buying process.