See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026

Homebuyer Programs in Gary, IN (2026)

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

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 →

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

Program Name	Type	Amount	First-Time Only	Details
Lake County Homebuyer Assistance Program	Grant	Up to $5,000	No	View →

Lake County Homebuyer Assistance Program

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 →

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

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 →

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

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

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 →

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

Free eligibility check

16 programs available in Gary. See which ones you qualify for.

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Question 1 of 6

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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.

Frequently Asked Questions

How much down payment assistance can I get in Gary?+

Gary homebuyers can stack multiple programs for substantial savings. The City of Gary First Time Homebuyer Program (HON) offers up to $10,000 as a forgivable loan. South Suburban Housing Center provides up to $15,000 in DPA. The Lake County Homebuyer Assistance Program offers up to $5,000. The IHCDA First Place Program provides up to 6% of the purchase price. The FHLBank Indianapolis Launch program offers up to $20,000 for first-time buyers at or below 80% AMI. The Hoosier Homes program offers up to 5% toward down payment and closing costs. Combined, these programs can cover a significant portion — or even all — of your upfront costs on a Gary home purchase.

Do I have to be a first-time homebuyer to qualify?+

Not for all programs. The IHCDA Next Home Program is open to both first-time and repeat buyers. The Hoosier Homes program is also available to repeat buyers. However, the City of Gary HON program, the IHCDA First Place Program, and the FHLBank Indianapolis Launch program require first-time buyer status, generally defined as not having owned a home in the past three years.

What is the maximum home price I can pay using these programs?+

IHCDA programs have acquisition price limits that vary by county. Check the current IHCDA acquisition limits for Lake County, which are updated annually. The City of Gary HON program limits assistance to 10% of the purchase price or $10,000, whichever is less, and requires the home to be in a designated Target Area.

What homebuyer education is required?+

The City of Gary HON program requires completion of the HON Homebuyer Education Workshop and counseling sessions. Contact the Gary Community Development Division at (219) 881-5075 for workshop schedules. Certificates from other HUD-certified agencies are accepted if dated within 12 months of your application. Most state and federal programs also require HUD-approved homebuyer education.

What is the City of Gary Target Area requirement?+

The City of Gary First Time Homebuyer Program (HON) requires that the home being purchased is located in a designated Target Area within Gary. Contact the Community Development Division at (219) 881-5075 to confirm whether a specific property is in an eligible Target Area before making an offer.

How does the South Suburban Housing Center program work?+

South Suburban Housing Center provides up to $15,000 in down payment assistance through its Inclusive Communities Fund (ICF) for homebuyers purchasing in Gary, Hammond, or East Chicago. Income limits apply and vary by household size. For Gary specifically, the limit for a 4-person household is $50,300. Contact South Suburban Housing Center directly for current eligibility requirements and application details.