real estate

Down Payment Assistance Options in Indiana: A Guide for Homebuyers

Down Payment Assistance & Home Financing
January 30, 2025•2 min read

What is Down Payment Assistance?

Down payment assistance (DPA) programs provide financial aid to qualified homebuyers to help cover the initial costs of purchasing a home. These programs are often backed by state, federal, and local agencies to support individuals and families in achieving homeownership.

Top Down Payment Assistance Programs in Indiana

1. Indiana Housing & Community Development Authority (IHCDA) Programs

The IHCDA First Place and Next Home programs offer assistance to eligible homebuyers through forgivable loans or grants.

  • First Place Program: Designed for first-time homebuyers, this program provides up to 6% of the home’s purchase price for down payment and closing costs.

  • Next Home Program: Available to repeat buyers, this program offers 3.5% of the purchase price in down payment assistance.

2. Federal Housing Administration (FHA) Loans with DPA

FHA loans allow low down payments, and when combined with Indiana’s DPA programs, homeownership becomes even more attainable.

  • Requires a minimum 3.5% down payment

  • Can be combined with IHCDA assistance for added financial support

3. USDA and VA Loans with No Down Payment

If you qualify for a USDA or VA loan, you may not need a down payment at all. These loans cater to rural homebuyers and military veterans.

  • USDA Loans: Available for eligible rural areas, offering 100% financing.

  • VA Loans: Exclusive to veterans and active-duty military members, requiring zero down payment.

4. Local City and County Assistance Programs

Many cities in Indiana, such as Indianapolis and Fort Wayne, have local programs that provide additional financial assistance for homebuyers.

  • Some offer grants that do not require repayment

  • Others provide low-interest loans with deferred payments

5. Employer-Assisted Housing (EAH) Programs

Some Indiana employers offer financial incentives to help employees purchase homes. These programs may include matching funds, grants, or interest-free loans.

Who Qualifies for Down Payment Assistance in Indiana?

Each program has its own eligibility criteria, but in general, applicants must:

  • Meet income and credit score requirements

  • Be purchasing a primary residence

  • Complete a homebuyer education course (for some programs)

How to Apply for Down Payment Assistance in Indiana

  1. Check eligibility for state or local programs.

  2. Work with an approved mortgage lender familiar with Indiana’s assistance programs.

  3. Complete any required homebuyer education courses

  4. Submit an application through the appropriate housing agency

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