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Homebuyer Programs in Gary, IN (2026)

Population: 69,093 | Median home price: $125,000 | Est. closing costs: $2,500 - $4,000

Last updated April 12, 2026

Skyline of Gary, IN

Gary is a city in northwest Indiana located in Lake County along the southern shore of Lake Michigan, with a median home price of approximately $125,000. Homebuyers in Gary have access to several strong assistance programs at the city, county, state, and nonprofit levels. The City of Gary First Time Homebuyer Program (HON) offers forgivable loans of up to $10,000 for first-time buyers in designated Target Areas. The South Suburban Housing Center provides up to $15,000 in down payment assistance for purchases in Gary, and the Lake County Homebuyer Assistance Program offers up to $5,000. At the state level, the IHCDA First Place Program provides up to 6% of the purchase price as a forgivable loan, while the FHLBank Indianapolis Launch program offers up to $20,000 for qualifying first-time buyers. By stacking these city, county, state, and nonprofit programs, Gary homebuyers can significantly reduce or even eliminate their out-of-pocket costs.

City Programs in Gary

City of Gary First Time Homebuyer Program (HON)
Type:
Forgivable Loan
Amount:
Up to 10% of purchase price or $10,000, whichever is less. Amount varies by AMI: 80-70% AMI up to $4,000; 69-60% AMI up to $5,000; 59-50% AMI up to $6,000
First-time only:
Yes

County Programs in Lake County

Lake County Homebuyer Assistance Program
Type:
Grant
Amount:
Up to $5,000
First-time only:
No

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

FHLBank Indianapolis Launch Down Payment Assistance
Type:
Grant
Amount:
Up to $20,000
First-time only:
Yes
Habitat for Humanity of Northwest Indiana Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with no traditional down payment required
First-time only:
Yes
Hoosier Homes Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to 5% of the purchase price
First-time only:
No
South Suburban Housing Center NWI Down Payment Assistance
Type:
Grant
Amount:
Up to $15,000
First-time only:
No

How to Apply

Step 1:

Check your eligibility. The City of Gary HON program has income limits based on household size (for example, $58,250 for a 4-person household). Review the income limits for each program you plan to apply for.

Step 2:

Complete homebuyer education. The City of Gary requires completion of the HON Homebuyer Education Workshop and counseling sessions. Contact the Community Development Division at (219) 881-5075 for scheduled workshop dates. Certificates from other HUD-certified agencies dated within 12 months are also accepted.

Step 3:

Connect with a local housing partner. South Suburban Housing Center offers up to $15,000 in DPA for Gary purchases and can help guide you through the process. Habitat for Humanity of Northwest Indiana at 3777 Colfax Street in Gary also provides homeownership opportunities for qualifying families.

Step 4:

Get pre-approved for a mortgage. Work with an IHCDA-approved lender to access the First Place or Next Home programs. Ask your lender about FHLBank Indianapolis Launch funds, which provide up to $20,000 for qualifying first-time buyers at or below 80% AMI.

Step 5:

Find a home within program limits. The City of Gary HON program requires purchasing in a designated Target Area. Check IHCDA acquisition price limits for Lake County and ensure the home qualifies for the programs you are using.

Step 6:

Submit your applications. Apply for the City of Gary HON program through the Community Development Division on a first-come, first-served basis. Your IHCDA-approved lender will help you apply for state programs at closing.

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