Indiana First-Time Home Buyer Programs 2026

Indiana Home Buyer Programs Compared (2026)

This guide lines up 3 IHCDA purchase products, 5 local or regional programs and 2 closed FHLBank grants. Only the South Bend, Evansville and HomeBoost money is grant-like; IHCDA's is all repayable.

Sources: IHCDA programs page, program guide (file dated 10.30.26) and lender matrix (05.2026); CHC Homeownership Assistance Program page; HOPE of Evansville first-time buyer page; Lake County housing brochure effective June 29, 2026; INHP down payment assistance page; City of Gary Hoosier Homes page; FWHA Hoosier Homes page; FHLBank Indianapolis HomeBoost and Launch pages and 2026 HomeBoost guidelines. All checked November 3, 2026.

Here's the plain version. IHCDA's help gets you in the door, and you'll pay every dollar back when the first mortgage ends. CHC and HOPE money can go away completely if you stay put. HomeBoost was the best regional grant, but its 2026 money is spoken for.

IHCDA Income and Acquisition Limits by County (May 25, 2026)

IHCDA publishes two limit tables effective May 25, 2026. The first covers First Step, Step Down and Next Home FHA, with income split into 1 to 2 people and 3 or more, plus a purchase price ("acquisition") cap of $566,355, or $692,211 in targeted areas. The second covers Next Home conventional, with one income figure per county and no price cap. According to IHCDA's lender matrix, Next Home has no acquisition limit at all.

Source: IHCDA, "Limits apply to First Step, Step Down, and Next Home," effective May 25, 2026, and "Income Limits, Next Home Conventional, Next Step Conventional, Next Step FHA," dated May 26, 2026, both linked from the Income and Acquisition Limits page (opens in a new tab). Counties are listed by the Census Bureau's July 1, 2025 population estimates. Targeted tracts are found with the census tract tool on IHCDA's Targeted Areas page (opens in a new tab).

One detail sets Indiana apart. IHCDA's lender matrix says it counts the income of the people on the loan application, "not household income," so a working roommate or a partner who isn't borrowing doesn't push you over the line. Household size, though, counts everyone who'll live in the home, per the program guide. That pairing helps larger families with one earner.

How Far IHCDA's 5% Goes in Indiana's Biggest Counties

Grantsights analysis of Indiana's county home values from Census Bureau QuickFacts puts First Step's 5% at $10,910 on the state's $218,200 median home, which covers an FHA 3.5% down payment of $7,637 and leaves about $3,273 for closing costs. Because the help is a percentage, it scales with price. The bigger limit is local: city programs cap the price, and two of them sit close to or below the county median.

Calculation: program percentage times the county median value. HUD's loans page (opens in a new tab) is the source for FHA's 3.5% minimum. Medians are 2020-2024 ACS values from Census Bureau QuickFacts. Local caps come from each program's own page.

What the numbers say: Next Home at 3.5% only matches an FHA down payment, so closing costs come out of your pocket. First Step's extra 1.5 points is the difference. In South Bend, CHC's $175,000 ceiling means a typical St. Joseph County home is out of range, so you'd be shopping the lower half of the market. Evansville's $219,000 cap leaves more room.

Local Help in Indianapolis, Lake County and Gary, Fort Wayne, Evansville and South Bend

The 5 biggest local markets run very different programs, and two of them post no dollar figure at all. Here's what each operator's own page says as of November 3, 2026.

South Bend: a 20% forgivable grant

According to Community Homebuyers Corporation's program page, which the City of South Bend's Neighborhood Health and Housing page (opens in a new tab) links as its first-time buyer program, qualifying buyers get a CHC mortgage plus a grant in the form of a forgivable second mortgage equal to 20% of the purchase price. The money comes from the City of South Bend, and seven local financial institutions back the program. The rules that matter:

• Household income at or below 80% of area median income (CHC's posted chart is labeled 2025).
• A single-family home or condo inside South Bend city limits, priced no higher than $175,000, that appraises at or above the price and passes CHC's inspection.
• You can't have a signed purchase agreement when you apply to CHC. Apply first, shop second.
• After you finish the pre- and post-purchase requirements, you must live in the home 5 more years for full forgiveness. Miss the requirements and you repay the grant.

Contact is CHC@southbendin.gov or 574-235-5880, per the city page, which was last updated September 23, 2026.

Evansville: HOPE's match of up to $15,000

HOPE of Evansville's first-time buyer page (opens in a new tab) says buyers who put in at least $1,000 get a match "on an as-needed basis up to a maximum of $15,000," with a $1,000 minimum award. The home must be inside Evansville city limits and priced at or below $219,000 for an existing home or $319,000 for new construction, limits HOPE says are current as of January 2026. Other rules: housing payment no more than 30% of gross monthly income, HOPE's Framework course for an $80 fee that isn't refunded if you're denied, whole-house and pest inspections, and a seller-paid $875 contingency addendum fee. The help is forgiven through the affordability period, backed by a recorded deed restriction; selling, refinancing or moving out early can trigger partial or total repayment. HOPE's page says awards depend on HUD funds and doesn't give the length of the affordability period, so ask.

Indianapolis: INHP's assistance comes with INHP's mortgage

In Marion County, the Indianapolis Neighborhood Housing Partnership's down payment assistance page (opens in a new tab) says eligible clients "may be eligible for thousands of dollars" but doesn't post an amount, a repayment structure or a price cap. Its 2026 income chart, based on HUD's Marion County limits effective June 1, 2026, tops out at $92,650 for one person, $105,900 for two, $119,100 for three and $132,350 for four. The key condition is that INHP's money "is only available with an INHP mortgage loan." That means you'll choose between INHP's loan and an IHCDA loan rather than stacking both.

Lake County and Gary: $5,000 from the county, Hoosier Homes in Gary

Lake County's housing brochure, effective June 29, 2026, offers up to $5,000 per household for down payment, fees and closing costs to buyers at or below HUD's 80% limit who can get private mortgage financing. The FY2026 income limits it lists are $56,500 for one person, $64,600 for two, $72,650 for three and $80,700 for four, and the price can't exceed $238,000 for an existing home or $365,000 for new construction. Its service area covers Crown Point, Merrillville, Hobart, Schererville, Munster and the other listed towns and unincorporated areas, but not Gary, Hammond or East Chicago. The brochure doesn't say whether the $5,000 is a grant or a lien, so ask the department at (219) 755-3225.

In Gary, the city's Hoosier Homes page (opens in a new tab) says first-time and repeat buyers can get "down payment assistance grants" if household income doesn't exceed 140% of Lake County's median ($105,700). The page doesn't list the amount. The Fort Wayne Housing Authority's description of the same program lists up to 5% and a 640 credit minimum. Grantsights couldn't load the City of Gary's own first-time buyer assistance page on November 3, 2026, so its current amount isn't included here.

Fort Wayne and Allen County

Grantsights didn't find a current City of Fort Wayne down payment page on the city's website as of November 3, 2026; the old press release about its Pathfinder partnership no longer loads. What Allen County buyers can document today is the Fort Wayne Housing Authority's Hoosier Homes page (opens in a new tab): up to 5% in assistance, 30-year fixed loans, a 640 minimum credit score, homebuyer education for first-time buyers, and eligibility in 26 listed counties including Allen, Lake and Marion. Applications start through the Club 720 app or website. Allen County also has targeted census tracts with IHCDA's higher $114,360 and $133,420 limits.

FHA, VA and USDA Loans in Indiana

All 3 IHCDA purchase products sit on top of a 30-year fixed FHA or conventional first mortgage, so the federal loan rules still apply underneath. Here's how each federal option fits an Indiana purchase.

• FHA: HUD says your down payment can be as low as 3.5% of the price, per its loans page (opens in a new tab). In Indiana, IHCDA's 660 credit floor sits on top of FHA's own rules when you use First Step or Next Home.
• VA: The VA purchase loan page (opens in a new tab) says there's no down payment as long as the price isn't above the appraised value, though a one-time funding fee may apply. Eligible veterans also skip IHCDA's first-time buyer rule for First Step and Step Down.
• USDA: Rural Development's guaranteed loan program (opens in a new tab) covers eligible rural addresses with income limits. IHCDA doesn't list USDA loans as a first mortgage option, so a USDA buyer would be outside IHCDA's DPA.

Our national first-time home buyer guide compares these loans in more detail, and the USDA housing grants guide covers USDA's direct loans for lower-income rural buyers.

What IHCDA Doesn't Tell You on Its Homebuyer Pages

Grantsights compared IHCDA's web pages with its own program guide, lender matrix and limits PDFs and found 5 gaps worth knowing before you lock a loan.

1. The DPA percentage differs between pages. IHCDA's homebuyers landing page says First Step offers "up to 4%." The lender matrix dated May 2026 and the program guide linked from the programs page both say 5%. The matrix and guide are the documents lenders work from, but get the figure in writing from your loan officer.
2. "Non-forgivable" means the full amount, forever. The program guide says "there is no proration." If you sell in year 2 or year 25, the whole DPA comes due. Refinancing outside an IHCDA program or opening a home equity line of credit triggers repayment too, which is easy to forget when rates drop.
3. The reservation fee is gone if the deal falls apart. IHCDA's reservation fee page says the $250 fee is non-refundable, payable by eCheck only. You also can't relock the same property for 60 days after a cancellation, per the guide's lock policy.
4. Recapture tax applies to First Step and Step Down. IHCDA's guide says federal recapture tax can apply if you sell within the first 9 full years, at a profit, with income above that year's adjusted limit. It's capped at the lesser of 6.25% of the original loan amount or half the gain. Next Home isn't subject to recapture, per the matrix.
5. The limits tables have typos. In the May 25, 2026 table, Daviess and Decatur counties show "$33,420" for 3+ people, where every other fully targeted county shows $133,420. The conventional table is labeled "May, 26, 2026" while the web page says May 25. If your county looks odd, ask your lender to confirm against IHCDA's system.

One more thing: IHCDA's current program list includes no Mortgage Credit Certificate. If a website promises an "Indiana MCC" for a new purchase, check the date.

Common Mistakes and Red Flags for Indiana Buyers

Most trouble comes from 5 avoidable errors, and nearly all of them happen before closing.

• Counting IHCDA money as free. A common mistake is planning to sell in a few years and assuming the 5% is gone. It isn't. On a $220,000 home, the $11,000 comes out of your sale proceeds.
• Signing a purchase agreement too early for South Bend's CHC. CHC says you can't have one signed when you apply. Indiana buyers used to IHCDA's order of operations, where a contract comes first, often underestimate how different the local rules are.
• Picking the wrong lender in Indianapolis. INHP's assistance only comes with an INHP mortgage, and IHCDA's only with an IHCDA participating lender. Decide which route fits before you get pre-approved.
• Missing the fees. HOPE's $80 course fee and IHCDA's $250 reservation fee are both non-refundable. Neither is large, but losing them on a deal that fails is avoidable.
• Paying for "grant access." A red flag is anyone charging you to find or unlock an Indiana home buyer grant. The FTC's government grant scams page (opens in a new tab) says no government agency will contact you demanding payment for a grant. Real IHCDA help comes through a participating lender; real city help comes from the program operator.

Once you own the home, our guide to home repair grants for low-income homeowners covers what's available if the roof or furnace fails.

How to Apply for IHCDA Help, Step by Step

IHCDA's process runs through 6 steps, and the lender does most of the paperwork once you sign a purchase contract.

1. Check your county limit. Find your county in IHCDA's limits PDF and compare it to the income of the people who'll be on the loan. If you're close, run your address through the targeted-tract tool; targeted tracts carry higher limits and waive the first-time rule.
2. Take an approved course. IHCDA's lender matrix accepts only Freddie Mac's CreditSmart or Fannie Mae's HomeView certificate. Both are online. Do it before you shop so it doesn't hold up the file.
3. Choose an IHCDA participating lender. Use IHCDA's participating lenders list (opens in a new tab). Ask the loan officer to price First Step, Next Home and Step Down side by side, since a lower rate with no DPA can cost less over time if you have savings.
4. Sign a purchase contract under the acquisition limit. IHCDA requires a valid real estate contract before the lender can reserve your loan. The lender locks the rate in IHCDA's system and the $250 reservation fee is paid.
5. Layer local help if you qualify. Lake County, Gary and Evansville programs have their own applications and income limits. IHCDA's guide allows a third lien for non-grant help.
6. Close within 60 days. IHCDA's commitment runs 60 days from the lock. The DPA goes to the closing table for down payment, closing costs, prepaids or realtor compensation, and you can't take cash back beyond your own documented investment.

For example, a couple in Marion County earning $85,000 a year and buying a $220,000 home with an FHA First Step loan is under IHCDA's $110,300 limit for 2 people and its $566,355 price cap. First Step's 5% gives them $11,000. FHA's 3.5% down payment is $7,700, which leaves $3,300 for closing costs. If their credit score is 665 and their debt-to-income ratio is 42%, they meet the matrix. What they'd owe back is specifically the full $11,000, due when they sell or refinance outside IHCDA.

A family of three in Merrillville earning $70,000 and buying a $200,000 existing home fits under Lake County's $72,650 limit and $238,000 cap, and under IHCDA's $116,035 Lake County limit. First Step would provide $10,000, and Lake County's up to $5,000 could take third lien position if it isn't a grant. That's up to $15,000 against a $7,000 FHA down payment and closing costs.

If Indiana Funds Run Out or Your Application Is Denied

2 of the programs in this guide are already closed for 2026, HomeBoost and Launch, and IHCDA says its own availability can change without notice. Here's what to do if a door shuts.

• If FHLBank money is gone: HomeBoost and Launch run in yearly rounds through member banks and credit unions. Ask your lender whether it's a member and when the next round opens.
• If you're over the income limit: check whether your address is in a targeted tract. In Marion County, that moves the 1 to 2 person limit from $110,300 to $132,360. Next Home conventional limits are also higher, $154,420 in Marion County.
• If your score is under 660: a HUD-approved housing counselor can build a credit plan, and IHCDA's Individual Development Account program (opens in a new tab) matches savings at least $3 for every $1 saved, up to $4,500, toward a home in Indiana. Our guide on how to apply for grants as an individual explains how to tell real help from offers to skip.
• If buying has to wait: our rental assistance programs guide and the HUD income limits guide cover help while you save.

The HUD HOME program guide explains the federal money behind Evansville's and Lake County's assistance, which can help you find a county program not listed here.

To see which official Indiana and federal routes match your household, try the free eligibility checker. It sends you to the official programs; it doesn't award money or file anything for you.

Buying near a state line? Northwest Indiana buyers often compare with the Illinois guide, and the Ohio and Michigan guides cover the other neighbors.

Sources

• IHCDA, Homeownership Programs (opens in a new tab) and Homebuyers (opens in a new tab) (checked November 3, 2026)
• IHCDA, Homeownership Program Guide (opens in a new tab) (file dated October 30, 2026; pages marked 02/2026)
• IHCDA, Lender matrix, First Step, Step Down and Next Home (opens in a new tab) (May 2026)
• IHCDA, Income and Acquisition Limits (opens in a new tab), limits for First Step, Step Down and Next Home FHA (opens in a new tab) (effective May 25, 2026) and Next Home conventional limits (opens in a new tab) (dated May 26, 2026)
• IHCDA, Reservation Fee (opens in a new tab), Participating Lenders List (opens in a new tab) and Targeted Areas (opens in a new tab)
• IHCDA, Mortgage Credit Certificate Re-Issuance Affidavit (opens in a new tab) and Individual Development Accounts (opens in a new tab)
• City of South Bend, Neighborhood Health and Housing (opens in a new tab) (updated September 23, 2026), and Community Homebuyers Corporation, Homeownership Assistance Program (opens in a new tab)
• HOPE of Evansville, First-Time Home Buyer Program (opens in a new tab) (price limits as of January 2026)
• INHP, Down Payment Assistance (opens in a new tab) (income chart effective June 1, 2026)
• Lake County Community Economic Development Department, Housing Assistance Programs brochure (opens in a new tab) (effective June 29, 2026)
• City of Gary, Hoosier Homes (opens in a new tab), and Fort Wayne Housing Authority, Hoosier Homes (opens in a new tab)
• FHLBank Indianapolis, HomeBoost (opens in a new tab), 2026 HomeBoost Program Guidelines (opens in a new tab) and Launch (opens in a new tab)
• HUD, Loans (FHA) (opens in a new tab)
• VA, VA purchase loan (opens in a new tab)
• USDA Rural Development guaranteed loan rules (opens in a new tab), as they apply to buyers in Indiana
• U.S. Census Bureau, QuickFacts: Indiana and Marion, Lake, Allen, Hamilton and St. Joseph counties (opens in a new tab) and Elkhart, Tippecanoe, Vanderburgh, Porter, Hendricks and Johnson counties (opens in a new tab) (median value of owner-occupied homes, 2020-2024; population estimates July 1, 2025)
• FTC, Government Grant Scams (opens in a new tab)