Indiana Down Payment Assistance
Indiana Down Payment Assistance Programs
A guide to current down payment assistance options in Indiana, including the state Housing Finance Agency, well-known city and county programs, and live DPA mortgage pricing for Indiana homebuyers.
Indiana Housing Finance Agency
Indiana Housing and Community Development Authority (IHCDA)
IHCDA administers the primary DPA programs for Indiana. Program details below are current as of April 23, 2026 - confirm current terms directly with IHCDA before applying.
Statewide DPA Programs in Indiana
First Step (First Place)
IHCDA
Down payment assistance of up to 6% of the purchase price as a forgivable second mortgage, paired with a 30-year fixed-rate first mortgage.
Paired with: FHA, Conventional
- First-time homebuyer: Required
- Primary residence only
- Minimum FICO: 640
- Maximum DTI: 45%
- Income: IHCDA income limits apply; vary by county and household size.
- Homebuyer education required
Conventional option generally requires a minimum 660 credit score. Applicants with DTI above 45% (and below 50%) may be held to a 680 minimum. Reservation fee applies.
Source: www.in.gov
Next Home
IHCDA
Down payment assistance of up to 3.5% of the purchase price as a second mortgage, forgiven after 3 years if the borrower remains in the home.
Paired with: FHA
- Primary residence only
- Minimum FICO: 640
- Maximum DTI: 45%
- Income: IHCDA income limits apply; vary by county and household size.
- Homebuyer education required
Available to both first-time and repeat buyers. Paired with a 30-year fixed-rate FHA first mortgage.
Source: www.in.gov
IHCDA Mortgage Credit Certificate (MCC)
IHCDA
Federal income tax credit based on a percentage of annual mortgage interest paid; up to $2,000 in credit per year per IRS cap.
- First-time homebuyer: Required
- Primary residence only
- Income: IHCDA MCC income and purchase price limits apply.
May be combined with eligible IHCDA first-mortgage programs. Application fee required. MCC issuance depends on available bond allocation.
Source: www.in.gov
Major City & County Programs in Indiana
INHP Down Payment Assistance
Indianapolis Neighborhood Housing Partnership · Indianapolis, IN
Down payment assistance ranging from $7,500 to $24,999 depending on household size and income, paired with an INHP below-market 20-year first mortgage and a deferred-payment second.
Funds are only available in combination with an INHP mortgage; homebuyer education required. Confirm current funding and eligibility with INHP.
Source: www.inhp.org
2026 Loan Limits in Indiana
Conforming (Conventional)
$806,500 baseline
FHA
$524,225 floor
Most Indiana counties use the FHA floor limit.
Live DPA Pricing for Indiana
Pricing below is sourced live from hundreds of wholesale lenders for a Indiana scenario. Edit the inputs to match your situation.
FHA Down Payment Assistance
Up to 5% assistance; repayable second at first rate + 2% over 10 years
▸Program details
- ✓Minimum credit score: 580
- ✓Non-traditional credit also possible
- ✓Assistance up to 2.5%, 3.5%, or 5% of the lesser of purchase price or appraised value
- ✓Assistance can be used for down payment, closing costs, or both
- ✓Second lien: 10-year fixed, repayable
- ✓Second lien rate is 2% higher than the first mortgage rate
- ✓No first-time homebuyer requirement
- ✓No income cap
- ✓Purchase of primary residence only
- ✓Eligible properties: 1-unit residences, PUD, 2-4 units, FHA-approved condos, manufactured (single/double-wide)
- ✓DTI per AUS and FHA manual underwriting guidelines
- ✓First lien: FHA 30-year fixed
Assistance amount
Compare DPA options for Indiana with live pricing
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