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Homebuyer Programs in Evansville, IN (2026)

Population: 117,298 | Median home price: $175,000 | Est. closing costs: $3,500 - $5,500

Last updated April 12, 2026

Skyline of Evansville, IN

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

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

CAPE of Evansville Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $5,000
First-time only:
Yes
Habitat for Humanity of Evansville Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage on a Habitat-built home
First-time only:
No
HOPE of Evansville Down Payment Assistance
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.

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