Down payment assistance in Indiana

5% of the property purchase price

A non-forgivable second mortgage with no monthly payments, paired with an IHCDA bond-funded FHA or conventional 30-year fixed first mortgage. It is due in full when the first mortgage ends (sale, refinance outside an IHCDA program, payoff) or the home is no longer the primary residence; a HELOC also triggers repayment. There is no proration, and federal recapture tax may apply.

Who qualifies: First-time homebuyer (no ownership interest in a principal residence in the past three years), unless buying in a targeted area or an eligible veteran. Income limits by county and household size; acquisition (price) limits by county. Homebuyer education certificate (Fannie Mae HomeView or Freddie Mac CreditWise). Credit score and DTI per IHCDA/master servicer requirements. $250 non-refundable reservation fee.

Indiana Housing and Community Development Authority · Agency website → · Checked 2026-09-30

2.50% or 3.50% of the purchase price, not to exceed the appraised value

A non-forgivable second mortgage with no monthly payments, paired with an IHCDA FHA or conventional 30-year fixed first mortgage. The full amount is due when the first mortgage ends or the home stops being the primary residence. Open to repeat buyers, unlike First Step.

Who qualifies: First-time and repeat homebuyers. Income and acquisition limits apply. Credit score and DTI per IHCDA/master servicer requirements. Homebuyer education certificate required.

Indiana Housing and Community Development Authority (IHCDA) · Agency website → · Checked 2026-09-30