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Get Matched Free →Homebuyer Programs in Bloomington, IN (2026)
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 → |
- 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 → |
- 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 → |
- 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 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 → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with no traditional down payment required
- First-time only:
- Yes
- Type:
- Deferred Loan
- Amount:
- Permanently affordable homes priced as low as $205,000 through ground lease model
- First-time only:
- No
How to Apply
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.
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.
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.
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.
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.
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.