See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026

Homebuyer Programs in Anderson, IN (2026)

Population: 55,000 | Median home price: $155,000 | Est. closing costs: $3,000 - $4,500

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 →

City of Anderson HOME Down Payment Assistance

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 →

IHCDA First Place Program

Type:: Forgivable Loan
Amount:: Up to 6% of the purchase price
First-time only:: Yes

IHCDA Mortgage Credit Certificate (MCC)

Type:: Tax Credit
Amount:: Up to $2,000 per year in federal tax credits
First-time only:: Yes

IHCDA Next Home Program

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 →
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 →

FHA Loans

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

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

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

HomeReady Mortgage (Fannie Mae)

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

HUD $100 Down Program

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

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

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 →

Habitat for Humanity of Madison County Homeownership

Type:: Zero-Interest Loan
Amount:: Affordable mortgage on a Habitat-built home with zero-interest terms
First-time only:: No

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How to Apply

Step 1: 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.

Step 2: 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.

Step 3: 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.

Step 4: 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.

Step 5: 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.

Step 6: 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.

Frequently Asked Questions

How much down payment assistance can I get in Anderson?+

Anderson buyers can access multiple programs. The City of Anderson HOME Down Payment Assistance provides up to $7,500 as a grant. The IHCDA First Place Program offers up to 6% of the purchase price as a forgivable loan, which on a $155,000 home would be up to $9,300. The IHCDA Next Home Program provides up to 3.5% for FHA loans. The IHCDA Mortgage Credit Certificate saves up to $2,000 per year in federal tax credits. Combining the city grant with a state program could provide over $16,000 in total assistance.

Do I have to be a first-time homebuyer to get assistance in Anderson?+

It depends on the program. The City of Anderson HOME Down Payment Assistance requires first-time buyer status. The IHCDA First Place Program also requires first-time buyer status, meaning you have not owned a home in the past three years. However, the IHCDA Next Home Program is available to both first-time and repeat buyers.

What is the maximum home price I can purchase with assistance?+

Purchase price limits vary by program and are updated periodically. IHCDA sets limits by county, so check the current Madison County limits on the IHCDA website or ask your IHCDA-approved lender. The City of Anderson HOME program may have separate property value limits based on HUD guidelines.

What homebuyer education is required?+

IHCDA programs require completion of a HUD-approved homebuyer education course. You can find approved courses through Housing4Hoosiers.org or by contacting the Anderson Housing Authority at (765) 641-2620. Courses are available both in-person and online.

How do I apply for the City of Anderson down payment assistance?+

Contact the City of Anderson Community Development Department at (765) 648-6096 or visit City Hall at 120 East 8th Street, 5th Floor, Anderson, IN 46016. The program is funded through HUD HOME Investment Partnership funds and is subject to annual funding availability, so it is best to apply early in the fiscal year.

Can I combine multiple programs for more assistance?+

Yes. You can combine the City of Anderson HOME grant with an IHCDA program like First Place or Next Home, plus the Mortgage Credit Certificate for ongoing annual tax savings. Federal programs like FHA loans, which require as little as 3.5% down, pair well with these assistance programs to minimize your out-of-pocket costs.

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