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.
>>>DISCOVER: 10 Most Affordable Housing Markets in Indiana
Statewide Down Payment Assistance Programs
Indiana offers several strong statewide programs that provide down payment assistance through participating lenders.
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 through a non-forgivable second mortgage. The full amount generally becomes due if the buyer sells or refinances the home, stops using it as a primary residence, or otherwise terminates the first mortgage.
Eligibility: Buyers must generally be first-time homebuyers, although exceptions apply in targeted areas and for certain military buyers. Applicants need a minimum credit score of 660, must meet income and purchase price limits, and must complete homebuyer education.
IHCDA Next Home Program
The Next Home Program is open to both first-time and repeat buyers, providing 2.5% or 3.5% of the lesser of the home’s purchase price or appraised value. The assistance is a non-forgivable second mortgage that generally must be repaid when the first mortgage ends or if the buyer sells, refinances, or stops using the home as a primary residence.
Eligibility: Buyers must meet income limits, have a minimum credit score of 660, complete homebuyer education, and choose an eligible 30-year fixed FHA or conventional loan.
Federal Home Loan Bank of Indianapolis Launch Program
The Launch Program is a grant available through participating Indiana banks, offering the lesser of $20,000 or 20% of the purchase price for down payment and closing costs. The grant is forgiven monthly over five years, and a sale or refinance during that period may trigger repayment of the unforgiven amount.
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.
Federal Home Loan Bank of Indianapolis HomeBoost Program
The HomeBoost Program offers a grant equal to the lesser of $20,000 or 20% of the purchase price for down payment, closing costs, and eligible homebuyer counseling expenses.
Eligibility: Applicants must meet the program’s first-generation and first-time homebuyer requirements, earn no more than 120% of AMI, contribute at least $500 of their own funds, complete homebuyer education, purchase an existing primary residence, and obtain financing through a participating member institution.
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 is available in participating counties and provides up to 5% of the purchase price toward down payment and closing costs. The assistance is a 0%-interest second mortgage with no monthly payments that is forgiven after seven years if program conditions are met.
Eligibility: Buyers must have a minimum 620 credit score, meet income limits, purchase within a currently participating county, and complete homebuyer education if they are first-time buyers.
Lake County Home Buyer Assistance Program
The Lake County Home Buyer Assistance Program provides up to $5,000 toward down payment, fees, and closing costs for eligible purchases outside Gary, Hammond, and East Chicago. The assistance is secured by a second mortgage and may be recaptured if the property is transferred during the five-year ownership period, although repayment is limited by available net proceeds.
Eligibility: Buyers must earn no more than 80% of AMI, contribute their own funds toward the purchase, obtain qualifying mortgage financing, and buy in an eligible Lake County community.
Down Payment Assistance Programs by City
Several Indiana cities and local organizations offer DPA programs tailored to local needs.
Indianapolis – INHP Down Payment Assistance
The Indianapolis Neighborhood Housing Partnership (INHP) DPA provides thousands of dollars in down payment support for income-eligible buyers. The amount depends on the buyer’s eligibility and available funding, and the assistance can only be used with an INHP mortgage.
Eligibility: Buyers must qualify for an INHP mortgage, meet the applicable income limits, and complete INHP’s homeownership preparation requirements.
Evansville – HOPE of Evansville Down Payment Assistance
HOPE of Evansville matches the buyer’s contribution as needed, providing between $1,000 and $15,000 toward down payment and closing costs. The assistance has no monthly payment and is secured by a second mortgage and deed restriction. It is forgiven as the buyer satisfies the program’s ownership requirements, but an early sale, refinance, or occupancy change can trigger repayment.
Eligibility: Buyers must generally be first-time homeowners purchasing in Evansville city limits, contribute at least $1,000, meet HUD income and asset limits, complete homebuyer education, and purchase an existing home for no more than $219,000 or a new home for no more than $319,000.
South Bend – Homeownership Assistance Program
South Bend's Homeownership Assistance Program provides a forgivable second mortgage covering 20% of the purchase price. Before forgiveness begins, buyers must complete the required post-purchase counseling and make 12 consecutive on-time mortgage payments. The assistance is then forgiven ratably over the following five years while the buyer remains current and continues occupying the home.
Eligibility: Buyers must generally be first-time homeowners with household income at or below 80% of AMI, have at least $2,000 in savings, purchase a home for no more than $175,000 in South Bend, 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 assistance through a second mortgage. If the property is transferred during the five-year ownership period, some or all of the assistance may be recaptured under the program’s HOME funding rules.
Eligibility: Buyers must be first-time homeowners, earn no more than 80% of AMI, purchase within Bloomington city limits, complete the Homebuyers Club class, and use a first mortgage from a lender allowing a second lien.
Hammond – Homebound Down Payment Assistance
The Hammond Homebound Program provides from $1,000 to $10,000 toward up to half of the required down payment and reasonable closing costs for an existing home. New-construction buyers may receive $10,000. The assistance is a forgivable loan with declining repayment obligations over five years, although certain employee categories have different repayment rules.
Eligibility: Applicants must purchase a primary residence in Hammond, complete homebuyer education, and generally meet the program’s income, recent-homeownership, and liquid-asset limits. Certain Hammond employees, first responders, and educators may qualify for exemptions from some requirements.
Elkhart and Goshen – LaCasa Homeownership Assistance Program
The LaCasa Homeownership Assistance Program provides up to $15,000 in upfront assistance for qualifying purchases in Elkhart or Goshen. Financing and repayment terms may vary by location and funding source, so buyers should confirm the applicable terms directly with LaCasa.
Eligibility: Buyers must purchase an eligible home in Elkhart or Goshen that was built after 1978, meet income requirements, obtain a current mortgage preapproval, and complete the required counseling.
Gary Revitalization Down Payment Assistance
The Gary Revitalization Down Payment Assistance Program provides up to $30,000 for qualifying key personnel, including certain first responders, teachers, healthcare workers, and public employees. Other eligible Gary residents may receive up to 6% of the purchase price, capped at $10,000, for down payment, closing costs, prepaid expenses, discount points, or an interest-rate buydown.
Eligibility: First-time and repeat buyers may qualify. The home must be in an eligible qualified census tract, must be used as the buyer’s primary residence for five years, and the buyer must complete the required education.
Inclusive Communities Fund – Northwest Indiana
The Inclusive Communities Fund offers a five-year forgivable grant for purchases in East Chicago, Gary, or Hammond. Assistance is $15,000 for households earning less than 60% of AMI, $10,000 for those earning from 60% to 80% of AMI, and $5,000 for those earning from 80% to 120% of AMI.
Eligibility: Buyers must use a conventional mortgage from a participating lender, purchase a one-unit primary residence, own no other residential real estate, and complete homebuyer education and individual counseling. FHA, VA, and USDA loans are not eligible.
East Chicago Home Ownership Program
The East Chicago Home Ownership Program provides up to $25,000 for new construction or $10,000 for an existing or reconstructed home. Eligible city employees may receive an additional $5,000. The assistance is a 0%-interest second mortgage with no monthly payments, forgiven evenly over ten years for new construction or five years for an existing home. Selling early can trigger prorated repayment.
Eligibility: Buyers must purchase an eligible one-unit primary residence in East Chicago, qualify for mortgage financing, and complete pre-purchase homebuyer education.
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.
