See programs you qualify for

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

Homebuyer Programs in Bloomington, IN (2026)

Population: 80,049 | Median home price: $300,000 | Est. closing costs: $6,000 - $9,000

Bloomington is a vibrant college city in southern Indiana, home to Indiana University, with a median home price around $300,000. First-time buyers in Bloomington have access to an unusually strong set of local programs. The City of Bloomington HAND Down Payment and Closing Cost Assistance provides up to $10,000 as a forgivable second mortgage, and the Monroe County RDA First-Time Homebuyer Program offers an additional $10,000 forgivable loan. The IHCDA First Place Program adds up to 6% of the purchase price in state-level assistance. Habitat for Humanity of Monroe County and the Summit Hill Community Land Trust offer additional affordable homeownership paths. By stacking the city, county, and state programs, a Bloomington buyer could access over $35,000 in combined down payment assistance.

City Programs in Bloomington

Program Name	Type	Amount	First-Time Only	Details
City of Bloomington HAND Down Payment and Closing Cost Assistance	Forgivable Loan	Up to $10,000	Yes	View →

City of Bloomington HAND Down Payment and Closing Cost Assistance

Type:: Forgivable Loan
Amount:: Up to $10,000
First-time only:: Yes

County Programs in Monroe County

Program Name	Type	Amount	First-Time Only	Details
Monroe County RDA First-Time Homebuyer Program	Forgivable Loan	Up to $10,000	Yes	View →

Monroe County RDA First-Time Homebuyer Program

Type:: Forgivable Loan
Amount:: Up to $10,000
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 Monroe County Homeownership Program	Zero-Interest Loan	Affordable mortgage with no traditional down payment required	Yes	View →
Summit Hill Community Land Trust Homeownership Program	Deferred Loan	Permanently affordable homes priced as low as $205,000 through ground lease model	No	View →

Habitat for Humanity of Monroe County Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable mortgage with no traditional down payment required
First-time only:: Yes

Summit Hill Community Land Trust Homeownership Program

Type:: Deferred Loan
Amount:: Permanently affordable homes priced as low as $205,000 through ground lease model
First-time only:: No

Free eligibility check

14 programs available in Bloomington. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. The City of Bloomington HAND program requires income at or below 80% of area median income (AMI). The Monroe County RDA program allows up to 100% AMI. IHCDA programs typically require a minimum 640 credit score.

Step 2: Complete the Bloomington Homebuyers Club. This free program consists of two consecutive Saturday sessions offered by HAND multiple times per year. It covers the home buying process, budgeting, and connects you with a housing counselor. Call HAND at 812-349-3401 for upcoming dates.

Step 3: Meet with a HAND housing counselor. After completing the Homebuyers Club, schedule a one-on-one session to review your finances and discuss which programs you qualify for. HAND is a HUD-Certified Housing Counseling Agency and provides services at no charge.

Step 4: Get pre-approved for a mortgage through an IHCDA-approved lender. IU Credit Union is a local option offering competitive rates for first-time buyers. Your lender can help you layer the IHCDA First Place or Next Home assistance on top of local programs.

Step 5: Find a home within program limits. The HAND program requires the home to be within Bloomington city limits. The Monroe County RDA program covers all of Monroe County but only existing homes (no new construction). You must contribute at least 3% of the purchase price from your own funds for the county program.

Step 6: Submit your applications and close on your home. The HAND forgivable loan forgives at 20% per year over 5 years. The Monroe County RDA loan forgives at 10% per year over 10 years. Both can be combined with state IHCDA assistance.

Frequently Asked Questions

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

Bloomington buyers can stack multiple programs for significant assistance. The City of Bloomington HAND program provides up to $10,000, and the Monroe County RDA program offers an additional $10,000. On top of that, the IHCDA First Place Program provides up to 6% of the purchase price (up to $18,000 on a $300,000 home). Combined, eligible buyers could access over $35,000 in assistance.

Do I have to be a first-time homebuyer to qualify?+

The City of Bloomington HAND program and the Monroe County RDA program both require first-time buyer status. The IHCDA First Place Program also requires it. However, the IHCDA Next Home Program is open to repeat buyers, and the Summit Hill Community Land Trust does not require first-time buyer status.

What is the maximum home price I can purchase?+

The City of Bloomington HAND program and Monroe County RDA program do not list a specific purchase price cap, but you must qualify for a private mortgage that meets program requirements. The Monroe County RDA requires an existing home (no new construction). IHCDA programs have purchase price limits that vary by county and are updated annually.

What homebuyer education is required?+

Most programs require homebuyer education. The City of Bloomington offers the free Homebuyers Club through HAND, consisting of two consecutive Saturday sessions. The Monroe County RDA requires a HUD-approved Pre-Purchase Counseling Workshop. HAND is a HUD-Certified counseling agency and provides free counseling at 812-349-3401.

What is the Summit Hill Community Land Trust?+

The Summit Hill Community Land Trust, operated by the Summit Hill Community Development Corporation (an affiliate of the Bloomington Housing Authority), offers permanently affordable homes starting as low as $205,000. The program uses a ground lease model where buyers own the home but lease the land, keeping prices affordable for future buyers too. You must live or work in Monroe County for at least six months to qualify, and the program can be combined with the city HAND down payment assistance.

Can I combine the city and county programs?+

Yes. The City of Bloomington HAND program ($10,000) and the Monroe County RDA program ($10,000) can potentially be combined, giving you up to $20,000 in local forgivable loans. These can also be layered with IHCDA state programs. However, the county program requires you to purchase an existing home (not new construction) and contribute at least 3% from your own funds.