Indiana’s real estate landscape is diverse, with fast-growing cities like Indianapolis and Fort Wayne, university hubs such as Bloomington, and smaller towns that offer a slower pace of life. With rising prices in many areas, saving for a down payment can still be a major challenge for both first-time and repeat buyers.
To help, Indiana offers a range of down payment assistance (DPA) options designed to make homeownership more affordable. These programs provide support through forgivable loans, grants, or low-interest second mortgages that reduce the upfront costs of buying a home.
In this guide, we’ll highlight some of the most widely used
and consistently funded programs available across Indiana. While not
every option is included here, the focus is on resources that deliver
meaningful benefits and are accessible to a broad range of buyers.
Meeting Area Median Income Requirements
One recurring theme that you'll notice as you look over the different down payment assistance programs available in Indiana is that many require applicants earn no more than a certain percentage of their local area median income (AMI).
You can search for AMI by property address using Fannie Mae’s AMI Lookup Tool.
Example: The Federal Home Loan Bank of Indianapolis Launch Program requires that homebuyers seeking assistance earn no more than 80% of AMI. If the area median income where you're planning to buy is $105,000, you could earn as much as $84,000 and be eligible.
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Statewide Down Payment Assistance Programs
Indiana offers several strong statewide programs that pair down payment assistance with affordable mortgage products.
IHCDA First Step Program
The First Step Program from the Indiana Housing & Community Development Authority (IHCDA) offers 5% of the purchase price as down payment assistance, structured as a repayable second mortgage that comes due when you sell or refinance.
Eligibility: Buyers must be first-time homebuyers (or purchasing in a targeted area), have a minimum credit score of 640, meet county-specific income and purchase price caps.
IHCDA Next Home Program
The Next Home Program is open to both first-time and repeat buyers, providing down payment assistance of 2.5% or 3.5% of the home’s purchase price through a second mortgage.
Eligibility: Buyers must meet income and purchase price limits similar to the First Step program, choose a 30-year fixed FHA or conventional loan, and the assistance amount cannot exceed the appraised value of the home.
Federal Home Loan Bank of Indianapolis Launch Program
The Launch Program is a grant available through participating Indiana banks, offering up to $20,000 (capped at 20% of the purchase price) for down payment and closing costs.
Eligibility: Buyers must be first-time homebuyers with household income at or below 80% of AMI, contribute at least $500 of their own funds, complete homebuyer education, and use a mortgage from a member bank.
Down Payment Assistance Programs by County
Indiana counties also run programs with localized benefits, often supported by HUD funds.
Hoosier Homes Program
The Hoosier Homes Program partners with multiple counties including Marion, Kosciusko, Steuben, and more. It provides forgivable loans of up to 5% of the purchase price toward down payment and closing costs.
Eligibility: Buyers must have a minimum 640 credit score, complete homebuyer education if first-time buyers, meet income and purchase price limits, and purchase within a participating jurisdiction.
United Way of the Wabash Valley Home DPA Program
Serving Clay, Parke, Sullivan, Vermillion, and Vigo counties, the United Way Program offers up to 5% of the purchase price, 3% for down payment and 2% for closing costs.
Eligibility: Buyers must have household income under 80% of AMI, contribute at least $1,000 of their own funds, purchase a home priced at no more than $80,000. In certain cases a purchase price over $80,000 will be considered, however, the payment from United Way will not exceed $4,000.
Lake County Home Buyer Assistance Program
The Lake County Home Buyer Assistance Program provides up to $5,000 in assistance to first-time buyers purchasing outside Gary, Hammond, and East Chicago.
Eligibility: Buyers must earn up to 80% of AMI, purchase a home within HUD’s 95% median price limits, and agree to a forgivable second mortgage tied to occupancy and ownership for a minimum affordability period.
Down Payment Assistance Programs by City
Several Indiana cities run their own DPA programs tailored to local needs.
Indianapolis – INHP Down Payment Assistance
The Indianapolis Neighborhood Housing Partnership (INHP) DPA provides up to $13,300 in down payment support for income-eligible buyers using an INHP mortgage.
Eligibility: Buyers must qualify for an INHP mortgage, meet HUD income limits (such as $88,550 (2025) for a family of four in Indianapolis), and complete homeownership preparation steps through INHP.
Evansville – HOPE of Evansville Down Payment Assistance
HOPE of Evansville offers a matching grant of up to $15,000, with buyers required to contribute at least $1,000 of their own funds.
Eligibility: Buyers must be first-time homeowners purchasing in Evansville city limits, have household income under HUD limits, buy a home priced no more than, in 2025, $174,000 (existing) or $255,000 (new construction), and complete a homebuyer education course.
South Bend – Homeownership Assistance Program
South Bend's Homeownership Assistance Program provides a forgivable second mortgage covering 20% of the purchase price, forgiven after 5 years.
Eligibility: Buyers must be first-time homeowners with household income at or below 80% of AMI, have at least $2,000 in savings, purchase a home under $175,000 (2025) in city limits, and commit to both pre- and post-purchase counseling.
Bloomington – HAND Down Payment & Closing Cost Assistance
Bloomington’s HAND Program provides up to $10,000 in forgivable assistance, forgiven after 5 years.
Eligibility: Buyers must be first-time homeowners, earn less than 80% of AMI, purchase within city limits, complete the Homebuyers Club class, and use a first mortgage from a lender allowing a second lien.
Additional Down Payment Assistance Programs in Indiana
Here are some other helpful resources and programs that may assist with down payment costs. These programs are still active and available in Indiana, but weren’t featured above.
Statewide Programs
Chenoa Fund (Nationwide program available in Indiana)
City Programs
Buying an Indiana Home Using Down Payment Assistance
Just as Indiana’s housing landscape is diverse, so too are the programs designed to help you enter it. For many buyers, down payment assistance can be the key that turns homeownership from a distant goal into a near-term reality. Use this guide as a starting point, stay up to date with current mortgage rates and use our loan calculators to see how much down payment assistance can help you. With the right plan and support, finding your Indiana home may be closer than you think.
Check with the organization directly for the most recent guidelines. While programs were fact-checked at the time of writing, requirements change often, and programs become unavailable when funds are exhausted.
