See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Evansville, IN (2026)
Evansville is the largest city in southwestern Indiana and the seat of Vanderburgh County, with a median home price around $175,000 that makes homeownership particularly accessible. Local buyers benefit from strong nonprofit programs including HOPE of Evansville, which matches buyer contributions dollar-for-dollar up to $10,000 in down payment assistance, and CAPE of Evansville, which provides up to $5,000 toward down payment and closing costs. At the state level, the IHCDA First Place Program offers up to 6% of the purchase price as a forgivable loan and the Next Home Program provides up to 3.5% with forgiveness after just two years. By combining local and state programs, Evansville buyers could receive over $20,000 in total 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 |
|---|---|---|---|---|
| CAPE of Evansville Down Payment Assistance | Deferred Loan | Up to $5,000 | Yes | View → |
| Habitat for Humanity of Evansville Homeownership Program | Zero-Interest Loan | Affordable mortgage on a Habitat-built home | No | View → |
| HOPE of Evansville Down Payment Assistance | Forgivable Loan | Up to $10,000 (dollar-for-dollar match of buyer contribution) | Yes | View → |
- Type:
- Deferred Loan
- Amount:
- Up to $5,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage on a Habitat-built home
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $10,000 (dollar-for-dollar match of buyer contribution)
- First-time only:
- Yes
How to Apply
Step 1: Check your eligibility. Most Evansville programs require household income at or below 80% of Area Median Income (AMI) for Vanderburgh County. IHCDA state programs have income limits ranging from $82,100 to $138,740 depending on household size.
Step 2: Complete homebuyer education. HOPE of Evansville offers their Framework homebuyer education course for $80, which is required for their DPA program. Contact HOPE at (812) 423-3169 to register. Habitat for Humanity of Evansville also provides financial education at 812-423-5623.
Step 3: Apply for HOPE of Evansville DPA. Contribute a minimum of $1,000 from your own savings. HOPE will match your contribution dollar-for-dollar up to $10,000. The home must be within Evansville city limits and the sales price cannot exceed $174,000 for existing homes or $255,000 for new construction.
Step 4: Explore CAPE of Evansville assistance. Contact CAPE of Evansville about their program offering up to $5,000 toward down payment and closing costs as a deferred loan with no monthly payments.
Step 5: Get pre-approved for a mortgage. Contact an IHCDA Participating Lender for state programs like First Place (640+ credit score) or Next Home (660+ credit score). These state programs can be used alongside local assistance.
Step 6: Find a home within program limits. IHCDA purchase price limits apply to state programs. For HOPE assistance, the home must be within Evansville city limits and meet the sales price caps.
Step 7: Submit your applications and close. Your lender will process the DPA applications alongside your mortgage. Your monthly payment including principal, interest, taxes, insurance, and PMI cannot exceed 30% of your gross monthly income for HOPE assistance.
Frequently Asked Questions
How much down payment assistance can I get in Evansville?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What homebuyer education is required?+−
What is the difference between the HOPE and CAPE programs?+−
Can I combine the IHCDA Mortgage Credit Certificate with local programs?+−
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