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Homebuyer Programs in Goshen, IN (2026)

Population: 34,355 | Median home price: $245,000 | Est. closing costs: $5,000 - $7,500

Last updated April 12, 2026

Skyline of Goshen, IN

Goshen is a city of about 34,000 residents in Elkhart County in northern Indiana. The median home price is approximately $245,000. Goshen buyers have access to a city-funded Homeownership Assistance Program through the Community Development Block Grant (CDBG), which provides down payment assistance and HUD-certified housing counseling to first-time homebuyers. Additional options include the Hoosier Homes Down Payment Assistance offering up to 5% of the purchase price as a forgivable loan, the FHLBank Indianapolis Launch program offering up to $20,000 in grants, and the Habitat for Humanity of Elkhart County homeownership program. Combined with IHCDA state programs like First Step (up to 6% of purchase price), buyers can stack multiple programs to significantly reduce their upfront costs.

City Programs in Goshen

City of Goshen Homeownership Assistance Program
Type:
Grant
Amount:
Varies (total program allocation of $51,750 for program year 2026)
First-time only:
Yes

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 Elkhart County Homeownership
Type:
Zero-Interest Loan
Amount:
Affordable mortgage on a Habitat-built home with zero-interest terms
First-time only:
No
Hoosier Homes Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to 5% of the purchase price
First-time only:
No

How to Apply

Step 1:

Check your eligibility. Most programs require household income at or below 80% of the area median income (AMI) for Elkhart County. The IHCDA First Step program also requires a minimum credit score of 640.

Step 2:

Contact LaCasa Inc. at (574) 533-4450 or newhome@lacasagoshen.org to enroll in their HUD-certified homebuyer education and financial counseling classes. LaCasa is a NeighborWorks America affiliate located at 202 N. Cottage Ave., Goshen, IN 46528, and is the primary partner for Goshen's homebuyer programs.

Step 3:

Apply for the City of Goshen Homeownership Assistance Program by contacting Theresa Cummings, Community Development Specialist, at (574) 533-9370 or theresacummings@goshencity.com. This CDBG-funded program provides down payment assistance to first-time, income-qualifying buyers purchasing within Goshen.

Step 4:

Get pre-approved for a mortgage through an IHCDA-participating lender. Ask about IHCDA First Step (up to 6% of purchase price for first-time buyers) and IHCDA Next Home (up to 3-4% of purchase price, no first-time buyer requirement).

Step 5:

Ask your lender about the Hoosier Homes Down Payment Assistance program, which provides up to 5% of the purchase price as a forgivable second mortgage with no payments and no interest for qualifying buyers at or below 80% AMI.

Step 6:

Explore additional grant funding through the FHLBank Indianapolis Launch program, which offers up to $20,000 in grants for qualifying buyers. Your lender must be a member of the Federal Home Loan Bank of Indianapolis.

Step 7:

Find a home in Goshen within program guidelines and submit your purchase agreement. Your lender and LaCasa will help coordinate the various assistance programs through closing.

Frequently Asked Questions

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