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Homebuyer Programs in Columbus, IN (2026)

Population: 48,000 | Median home price: $260,000 | Est. closing costs: $5,000 - $8,000

Last updated April 12, 2026

Skyline of Columbus, IN

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

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

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
FHLBA Community Partners Product
Type:
Forgivable Loan
Amount:
Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:
No
FHLBA First Time Homebuyer Product
Type:
Forgivable Loan
Amount:
Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:
Yes
FHLBA Workforce Housing Plus+
Type:
Forgivable Loan
Amount:
Up to $15,000 in home purchase assistance for down payment and closing costs
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

Habitat for Humanity of Bartholomew County Homeownership
Type:
Zero-Interest Loan
Amount:
Affordable mortgage on a Habitat-built home with zero-interest terms
First-time only:
No
SIHCDC HOME Homebuyer Assistance Program
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

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