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Get Matched Free →Homebuyer Programs in Anderson, IN (2026)
Anderson is a mid-sized city in Madison County, Indiana, about 40 miles northeast of Indianapolis, with a median home price around $155,000 making it one of the more affordable markets in central Indiana. The City of Anderson offers up to $7,500 in HOME down payment assistance grants for first-time homebuyers through its Community Development Department. Indiana state programs add significant help on top of that, with the IHCDA First Place Program providing up to 6% of the purchase price as a forgivable loan and the IHCDA Next Home Program offering up to 3.5% for both first-time and repeat buyers. The IHCDA Mortgage Credit Certificate can save homeowners up to $2,000 per year in federal tax credits. Habitat for Humanity of Madison County also serves the area with affordable homeownership opportunities. By combining city and state programs, Anderson buyers could access over $16,000 in assistance on a typical home purchase.
City Programs in Anderson
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Anderson HOME Down Payment Assistance | Grant | Up to $7,500 | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $7,500
- First-time only:
- Yes
State Programs in Indiana
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| IHCDA First Place Program | Forgivable Loan | Up to 6% of the purchase price | Yes | View → |
| IHCDA Mortgage Credit Certificate (MCC) | Tax Credit | Up to $2,000 per year in federal tax credits | Yes | View → |
| IHCDA Next Home Program | Forgivable Loan | Up to 3.5% of the purchase price (FHA) or 3% (Conventional) | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 6% of the purchase price
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Up to $2,000 per year in federal tax credits
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 3.5% of the purchase price (FHA) or 3% (Conventional)
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Habitat for Humanity of Madison County Homeownership | Zero-Interest Loan | Affordable mortgage on a Habitat-built home with zero-interest terms | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage on a Habitat-built home with zero-interest terms
- First-time only:
- No
How to Apply
Check your eligibility. Review income limits for Madison County under both the City of Anderson HOME DPA program and IHCDA programs. The city program targets low and very low-income households, while IHCDA programs have their own income thresholds. A minimum credit score of 640 is typically required for IHCDA loans.
Complete homebuyer education. IHCDA programs require a HUD-approved homebuyer education course. Contact the Anderson Housing Authority at (765) 641-2620 or visit Housing4Hoosiers.org to find an approved course in the Anderson area.
Contact the City of Anderson Community Development Department. Call (765) 648-6096 or visit City Hall at 120 East 8th Street, 5th Floor, to learn about current HOME down payment assistance availability and apply for up to $7,500 in grant funding.
Connect with an IHCDA-approved lender. IHCDA down payment assistance is only available through participating lenders. Visit the IHCDA website or call (317) 232-7777 to find an approved lender serving Madison County.
Get pre-approved for a mortgage. Your lender will help determine which combination of city and state programs works best and how much total assistance you qualify for.
Find a home and submit your application. Work with a real estate agent familiar with Anderson. If using the city HOME DPA, the home must be within Anderson city limits. The process typically takes 30 to 45 days from accepted offer to closing.