Indiana First-Time Home Buyer Programs and Assistance
Indiana Housing and Community Development Authority (IHCDA) currently lists 3 programs for Indiana buyers, with down payment help up to 6% of the price (about $16,392 on a median-priced home) through First Place (FP). Figures below were read from the agency's own pages on September 11, 2026.
Indiana first-time buyer programs open now
Indiana Housing and Community Development Authority (IHCDA) is the state's housing finance agency (homebuyer programs page). It runs 2 down payment or closing-cost assistance programs alongside 1 below-market first mortgage. Not stated in a single definition on the pages reviewed;
| Program | Type | Amount | First-time only | Min. credit | Income limit |
|---|---|---|---|---|---|
| First Place (FP) source | Second mortgage | 6.0% of the purchase price, not to exceed the appraised value | Yes | 640 | Varies by program/loan type and household size and updates periodically; |
| Step Down (SD) source | First mortgage | Rate-only program; no down payment assistance dollar amount | Yes | n/a | See IHCDA Income and Acquisition Limits page |
| Next Home (NH) source | Second mortgage | 2.50% or 3.50% of the purchase price, not to exceed the appraised value | Check | 640 | See IHCDA Income and Acquisition Limits page |
- First Place (FP). Terms: FHA or Conventional 30-year fixed-rate first mortgage with down payment assistance Purchase price limit: Varies by loan type; see IHCDA Income and Acquisition Limits page Must pair with: An IHCDA-participating lender Program page
- Step Down (SD). Terms: Below-market interest rate for qualifying first-time homebuyers; no DPA component Purchase price limit: See IHCDA Income and Acquisition Limits page Must pair with: An IHCDA-participating lender Program page
- Next Home (NH). Terms: FHA or Conventional 30-year fixed-rate first mortgage; can be combined with the Mortgage Credit Certificate (MCC) Purchase price limit: See IHCDA Income and Acquisition Limits page Must pair with: An IHCDA-participating lender; may be combined with the Mortgage Credit Certificate Program page
Mortgage credit certificate in Indiana
Indiana offers a mortgage credit certificate (Mortgage Credit Certificate (MCC)), a federal tax credit on part of the mortgage interest you pay each year, for as long as you live in the home. MCC program page
City and county programs in Indiana
Local governments run their own down payment funds on top of the state programs. These can be combined with a state loan in most cases; each has its own income limit and area.
- Indianapolis (Marion County): INHP Down Payment Assistance. Several thousand dollars in down payment assistance; exact tiered amounts not itemized on the page reviewed. Program. Income limit: Based on HUD Median Income Limits for Marion County;. Official page
How little you can put down
You do not need 20% down. Conventional loans go as low as 3% (through programs like Fannie Mae HomeReady and Freddie Mac Home Possible), FHA loans start at 3.5%, and VA and USDA loans can require nothing down. On Indiana's median-priced home (about $273,200), 3% down is roughly $8,196. Putting 20% down lets you skip private mortgage insurance, but most first-time buyers put down far less.
Who counts as a first-time buyer
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years, so many repeat buyers qualify again. Indiana programs often add income and purchase-price limits, which is another reason to confirm the details with Indiana Housing and Community Development Authority.
Stack a buyer rebate on top in Indiana
Down-payment assistance and a buyer commission rebate are two different things, and in Indiana you can use both. Assistance from Indiana Housing and Community Development Authority helps with your down payment and closing costs; a buyer rebate returns about 2% of the price to you at closing (roughly $5,464 on a median-priced home), which can cover much of your closing bill.
Frequently asked questions
What first-time home buyer programs are available in Indiana?
Indiana Housing and Community Development Authority (IHCDA) lists 3 programs: First Place (FP), Step Down (SD), Next Home (NH). Down payment help runs up to 6% of the price (about $16,392 on a median-priced home). Indianapolis (Marion County) also run local down payment programs.
How much down payment assistance can you get in Indiana?
Up to 6% of the price (about $16,392 on a median-priced home) through First Place (FP) (second mortgage). Other Indiana programs offer different amounts; see the table on this page for each one.
Do you have to be a first-time buyer to qualify in Indiana?
Not stated in a single definition on the pages reviewed; IHCDA's First Place program requires the borrower be a first-time homebuyer unless the property is in a qualified census tract or targeted area (source: in.gov/ihcda/homebuyers/programs). No explicit 3-year-lookback definition was printed on the fetched pages.
How much down payment do you need in Indiana?
As little as 3% on a conventional loan, 3.5% on an FHA loan, and 0% on VA or USDA loans. On Indiana's median-priced home (about $273,200), 3% is roughly $8,196. You do not need 20% down, though 20% lets you avoid mortgage insurance.
Who counts as a first-time home buyer?
For most programs, a first-time buyer is anyone who has not owned a primary residence in the last three years. Some Indiana programs also have income and purchase-price limits, so check with Indiana Housing and Community Development Authority.
Can I combine assistance with a buyer rebate in Indiana?
Yes. A buyer commission rebate is separate from down-payment assistance and is legal in Indiana. Assistance helps with your down payment and closing costs up front; a rebate returns about 2% of the price at closing, which you can put toward closing costs. You can use both.
Official sources
- Indiana Housing and Community Development Authority (IHCDA)
- IHCDA: Homebuyers
- IHCDA: Income and Acquisition Limits
- Down Payment Assistance - INHP - Indianapolis Neighborhood Housing Partnership
- Consumer Financial Protection Bureau: down payment options and how to prepare
Indiana program details last verified against Indiana Housing and Community Development Authority on September 11, 2026.
Read the full guide to the cash you need to buy →
This is general information, not financial advice. Program details, limits, and loan terms change; confirm the current rules with Indiana Housing and Community Development Authority and your lender before you rely on them.
See first-time buyer programs in all states