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Homebuyer Programs in Hammond, IN (2026)

Population: 75,715 | Median home price: $175,000 | Est. closing costs: $3,500 - $5,500

Last updated April 12, 2026

Skyline of Hammond, IN

Hammond is a Northwest Indiana city in Lake County, part of the greater Chicago metropolitan area, with a median home price around $175,000. Homebuyers in Hammond have access to an exceptionally strong combination of local, county, and state programs. The City of Hammond Homebound Program provides up to $10,000 in down payment assistance for city police, fire, educational professionals, and city employees, and up to $2,500 for other qualifying buyers. The South Suburban Housing Center offers up to $15,000 in additional down payment assistance for Hammond purchases. The Lake County Homebuyer Assistance Program adds up to $5,000, and the IHCDA First Place Program provides up to 6% of the purchase price in state-level assistance. By stacking these programs, a Hammond buyer could potentially access over $30,000 in combined assistance — enough to cover a significant portion of the purchase price.

City Programs in Hammond

City of Hammond Homebound Program
Type:
Forgivable Loan
Amount:
Up to $10,000 for Hammond police, fire, educational professionals, and full-time city employees; up to $2,500 for other income-qualifying buyers
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

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
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 Hammond Homebound Program requires first-time buyer status or not having owned a home in the past 12 months. Income restrictions apply. Hammond police, fire, educational professionals, and full-time city employees qualify for the full $10,000.

Step 2:

Contact the Hammond Community Development Department at (219) 853-6358 ext. 2 to learn about the Homebound Program and determine your eligibility.

Step 3:

Explore the South Suburban Housing Center's $15,000 down payment assistance program. Call (219) 932-4800. Note that this program requires conventional financing only (FHA, VA, and USDA loans are not eligible) and you must use a participating lender.

Step 4:

Apply for the Lake County Homebuyer Assistance Program for up to $5,000 in additional help. Contact the Lake County Community Economic Development Department at (219) 755-3225.

Step 5:

Get pre-approved for a mortgage through an IHCDA-approved lender to access state programs. The IHCDA First Place Program offers up to 6% of the purchase price, and the Next Home Program provides up to 3.5% for FHA loans.

Step 6:

Find a home within Hammond city limits. The Homebound Program works with both existing homes and new construction. Submit your applications and close on your home. The Homebound Program is forgivable after a five-year residency period.

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