See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Columbus, IN (2026)
Columbus is a city of about 48,000 in south-central Indiana, internationally recognized for its architectural heritage and home to major employers like Cummins Inc. With a median home price around $260,000, Columbus offers a moderate cost of living for central Indiana. The IHCDA First Place Program provides up to 6% of the purchase price as a forgivable loan for first-time buyers, which could mean up to $15,600 on a typical Columbus home. The IHCDA Next Home Program offers 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. Locally, the Southern Indiana Housing and Community Development Corporation (SIHCDC) administers a HOME-funded homebuyer assistance program for income-eligible buyers in Bartholomew County, and Columbus Area Habitat for Humanity provides affordable homeownership opportunities for qualifying families. By combining state and local programs, Columbus buyers can access significant assistance toward their home purchase.
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 → |
| 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:
- 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 Bartholomew County Homeownership | Zero-Interest Loan | Affordable mortgage on a Habitat-built home with zero-interest terms | No | View → |
| SIHCDC HOME Homebuyer Assistance Program | Grant | — | Yes | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage on a Habitat-built home with zero-interest terms
- First-time only:
- No
- Type:
- Grant
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Review income limits for Bartholomew County under IHCDA programs and the SIHCDC HOME program, which requires household income at or below 80% of Area Median Income. A minimum credit score of 640 is typically required for IHCDA loans.
Step 2: Complete homebuyer education. IHCDA programs and the SIHCDC HOME program both require a HUD-certified homebuyer education course. Visit Housing4Hoosiers.org to find an approved course, or contact SIHCDC at their website for local options.
Step 3: Contact SIHCDC for local assistance. The Southern Indiana Housing and Community Development Corporation administers the HOME homebuyer assistance program for Bartholomew County. Visit sihcdc.org/homeprogram or contact them directly to learn about current funding availability and apply.
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 in the Columbus area.
Step 5: Get pre-approved for a mortgage. Your lender will help determine which combination of local and state programs works best for your situation and how much total assistance you qualify for.
Step 6: Find a home and close. Work with a real estate agent familiar with Columbus and Bartholomew County. If using the SIHCDC HOME program, you must intend to use the home as your primary residence for 5 to 15 years depending on the assistance received.
Frequently Asked Questions
How much down payment assistance can I get in Columbus?+−
Do I have to be a first-time homebuyer to get assistance in Columbus?+−
What is the maximum home price I can purchase with assistance?+−
What homebuyer education is required?+−
What local organizations help homebuyers in Columbus?+−
Can I combine multiple programs for more assistance?+−
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