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Get Matched Free →Homebuyer Programs in Gary, IN (2026)
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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| City of Gary First Time Homebuyer Program (HON) | Forgivable Loan | 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 | Yes | View → |
- 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
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| Lake County Homebuyer Assistance Program | Grant | Up to $5,000 | No | View → |
- Type:
- Grant
- Amount:
- Up to $5,000
- First-time only:
- No
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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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 |
|---|---|---|---|---|
| FHLBank Indianapolis Launch Down Payment Assistance | Grant | Up to $20,000 | Yes | View → |
| Habitat for Humanity of Northwest Indiana Homeownership Program | Zero-Interest Loan | Affordable mortgage with no traditional down payment required | Yes | View → |
| Hoosier Homes Down Payment Assistance | Forgivable Loan | Up to 5% of the purchase price | No | View → |
| South Suburban Housing Center NWI Down Payment Assistance | Grant | Up to $15,000 | No | View → |
- Type:
- Grant
- Amount:
- Up to $20,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with no traditional down payment required
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the purchase price
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $15,000
- First-time only:
- No
How to Apply
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.
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.
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.
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.
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.
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.