Down Payment Assistance in Indiana

What is down payment assistance in Indiana?

Homebuying in Indiana comes with a friendlier price tag than most of the country, and from Indianapolis to smaller towns across the Hoosier State, the right down payment assistance can turn that affordability into keys in hand sooner than most buyers expect.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the sand dunes along Lake Michigan to the limestone hills of the south, Indiana homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Indiana or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Indiana

The Indiana Housing and Community Development Authority (IHCDA) is the state’s housing finance agency and the central source for statewide DPA programs. IHCDA doesn’t lend directly to buyers. Homebuyers apply through an IHCDA-approved participating lender, which will combine the assistance with the mortgage.

All IHCDA programs share a few baseline requirements:

• The home must be in Indiana and used as your primary residence
• Borrower must meet applicable IHCDA income limit for the county in which they are purchasing a home
• Maximum purchase price must be within the applicable county purchase price limit
• Must apply through an IHCDA participating lender
• First mortgage must be 30-year fixed-rate FHA, Fannie Mae, or Freddie Mac financing

IHCDA Homeownership Programs

IHCDA offers several homeownership programs to qualified buyers:

The First Step program offers a 30-year fixed-rate first mortgage plus down payment assistance of up to 5% through a non-forgivable second mortgage. The assistance carries no interest and requires no payments.

First Step requirements include:

• Available to first-time homebuyers, veterans, and buyers purchasing in targeted areas
• Conventional or FHA loans only
• Repayment of DPA is required upon termination of the first mortgage, or when the property is sold, refinanced, or no longer used as the primary residence

The Next Home program offers down payment assistance of up to 3.50% based on the purchase price. The assistance is provided as a non-forgivable second mortgage with no interest and no payments.

Next Home requirements include:

• Available to first-time and repeat homebuyers
• Conventional or FHA 30-year fixed-rate loan
• Repayment of DPA is required upon termination of the first mortgage, or when the property is sold, refinanced, or no longer used as the primary residence

The Next Step program offers individuals participating in the First Step or Step Down programs an opportunity to refinance their IHCDA first mortgage. Participants in the Step Down program can apply for a new DPA second mortgage, which is offered as a non-forgivable second mortgage with no interest and no payments.

Next Step requirements include:

• Available to individuals participating in First Step or Step Down programs
• Repayment of DPA is required upon termination of the first mortgage, or when the property is sold, refinanced, or no longer used as the primary residence

Beyond IHCDA’s statewide programs, several Indiana cities and counties have established their own DPA programs. Many of these can be stacked with IHCDA assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Evansville down payment assistance program

Evansville sits along the Ohio River in southern Indiana, known for its historic riverfront, and a cost of living well below the national average. Its mix of historic neighborhoods and easy river access gives buyers affordability and a slower pace outside Indiana’s bigger cities.

Evansville down payment assistance program includes:

First Time Homebuyer Program: This down payment assistance program is administered through HOPE of Evansville, a HUD-certified nonprofit housing counseling and development agency. The assistance comes in the form of a match to qualified borrowers looking to buy a home within the city of Evansville. Homebuyers may receive up to $15,000 in down payment assistance.

Program details and requirements include:

• Buyers must meet income eligibility guidelines
• Must be first-time homebuyer
• Buyer must qualify for and obtain a first mortgage
• Must contribute a minimum of $1,000 toward the home purchase, which will be matched as needed by HOPE
• Home inspection required
• Completion of a homeownership education course
• Purchase price cannot exceed 95% of the area median purchase price
• DPA must be repaid if the home is sold, refinanced, or is no longer the borrower’s primary residence
• Funding for this program is not guaranteed and is dependent on HUD fund

Indianapolis/Marion County down payment assistance program

Indianapolis and Marion County anchor Indiana’s largest metropolitan area, known for hosting the Indianapolis 500 and a downtown built around the historic Soldiers’ and Sailors’ Monument. A diverse job market and a lower cost of living than many Midwest peers, gives buyers big-city amenities without the bigger-city price tag. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.)

Indianapolis/Marion County down payment assistance program includes:

Down Payment Assistance: This program is administered by the Indianapolis Neighborhood Housing Partnership, a nonprofit lender and housing organization serving the Indianapolis area. Qualified homebuyers can receive up to $14,999 in down payment and closing costs assistance.

Program details and requirements include:

• DPA available only when paired with an INHP mortgage loan
• Must meet income eligibility requirements.
• Property must be located in Marion County
• Buyer contribution of 1% to 3% depending on the INHP loan product

Northwest Indiana down payment assistance program

Northwest Indiana sits along the southern shore of Lake Michigan, offering easy access to Chicago’s job market at a fraction of Illinois home prices. The region blends steel-town roots in cities like Gary with lakefront access at the Indiana Dunes National Park, giving buyers beach access, city convenience, and lower costs all in one corner of the state.

Northwest Indiana down payment assistance program includes:

Down Payment Assistance Program: This program is administered through the South Suburban Housing Center, a nonprofit fair housing and housing counseling agency. Qualified homebuyers in East Chicago, Gary, or Hammon, Indiana may receive up to $15,000 in down payment assistance. The funds are provided as a five-year forgivable grant based on household income.

 Program details and requirements include:

• Property must be located in East Chicago, Gary, or Hammond, Indiana
• Household income must be at or below 120% of area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.
• One-unit properties only: House, condo, townhouse
• Must be a primary residence
• Conventional financing from a participating lender (FHA, VA, and USDA loans are not eligible for this program)
• Cannot own other real estate at the time of closing
• Attend homebuyer education course
• Complete one-on-one housing counseling
• Must work with an approved participating lender

These are the main down payment assistance programs available across Indiana. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Indiana down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at in.gov/ihcda/. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. IHCDA programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Indiana property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Indiana down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}