Down payment assistance, grants, forgivable loans, and tax credits available to Indiana buyers. Each program below is verified, with eligibility rules, benefit amounts, and a direct link to the official agency.
Last reviewed September 2026·2 programs·6 federal programs
Administered by Indiana Housing & Community Development Authority
5% of purchase price
5% of purchase price (lesser of price or appraised value) as a non-forgivable 0% second mortgage with no monthly payments; full amount due when the first mortgage terminates or the home stops being the primary residence. First-time buyer unless targeted census tract or veteran; $250 reservation fee; FHA or conventional 30-year fixed.
Income limit
Income/acquisition limits effective May 25, 2026: $95,300 (1-2 person) / $109,595 (3+) in most counties, up to $132,360 / $154,420 in targeted counties; acquisition limit $566,355 ($692,211 targeted).
Minimum credit score640
First-time buyer requiredYes
Special requirements: First-time buyer required unless purchasing in a targeted tract or military. $250 reservation fee. Homebuyer education required.
Administered by Indiana Housing & Community Development Authority
2.5% or 3.5% of purchase price
2.5% or 3.5% of purchase price as a non-forgivable 0% second mortgage with no monthly payments, due in full when the first mortgage terminates. Open to first-time and repeat buyers.
Income limit
FHA version uses the May 25, 2026 limits: $95,300 (1-2 person) / $109,595 (3+) in most counties, higher in targeted counties; Next Home Conventional uses a separate income-limit schedule. Acquisition limit $566,355 ($692,211 targeted).
Minimum credit score640
First-time buyer requiredNo
Special requirements: Available to first-time and repeat buyers.
3% minimum down payment with no minimum borrower contribution; income at or below 80% AMI (2026 AMIs effective June 13, 2026); reduced, cancellable mortgage insurance; $2,500 credit for very low-income first-time buyers on loans purchased through February 28, 2027.
Do I have to be a first-time homebuyer to qualify?
Most Indiana programs require first-time buyer status, but the definition is broader than most people think — the IRS considers you a first-time buyer if you haven't owned a primary residence in the last three years. Each program above lists its specific rules.
What credit score do I need?
Minimum credit scores vary by program. Most Indiana programs require 620 to 660, though some lower-tier products accept lower scores with manual underwriting. Check each program's eligibility section above.
How do I actually apply?
Most state programs aren't applied to directly — you go through a participating lender, who handles the program application as part of your mortgage. Each program above links to the official agency page with the current list of approved lenders.
Can I combine multiple programs?
Often yes — many states allow you to stack a state down-payment grant with a federal FHA or VA loan. Some programs explicitly forbid combining; check each program's "special requirements" above.
Do these programs cost anything?
The programs themselves are free to apply for. Some require completing a homebuyer education course (typically $50–$100, sometimes free). Forgivable second mortgages technically don't cost you unless you sell or refinance early — read the terms carefully.
