See programs you qualify for

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

Homebuyer Programs in Hammond, IN (2026)

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

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

Program Name	Type	Amount	First-Time Only	Details
City of Hammond Homebound Program	Forgivable Loan	Up to $10,000 for Hammond police, fire, educational professionals, and full-time city employees; up to $2,500 for other income-qualifying buyers	Yes	View →

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

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
Habitat for Humanity of Northwest Indiana Homeownership Program	Zero-Interest Loan	Affordable mortgage with no traditional down payment required	Yes	View →
South Suburban Housing Center NWI Down Payment Assistance	Grant	Up to $15,000	No	View →

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

Free eligibility check

14 programs available in Hammond. See which ones you qualify for.

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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.

Frequently Asked Questions

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

Hammond has one of the strongest stacks of DPA in Indiana. The City of Hammond Homebound Program provides up to $10,000 for city employees, police, fire, and educational professionals (up to $2,500 for other qualifying buyers). The South Suburban Housing Center offers up to $15,000. The Lake County Homebuyer Assistance Program adds up to $5,000. On top of those, the IHCDA First Place Program provides up to 6% of the purchase price. Combined, qualifying buyers could access over $30,000 in total assistance.

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

The City of Hammond Homebound Program requires that you be a first-time homebuyer or have not owned a home in the past 12 months. The IHCDA First Place Program requires first-time buyer status. However, the IHCDA Next Home Program is available to repeat buyers, and the South Suburban Housing Center program does not require first-time buyer status.

What is the maximum home price I can purchase?+

The City of Hammond Homebound Program and South Suburban Housing Center program do not list specific purchase price caps, though the home must be your primary residence. IHCDA programs have purchase price limits that vary by county and are updated annually. Contact an IHCDA-approved lender for current Lake County limits.

What homebuyer education is required?+

IHCDA programs require a HUD-approved homebuyer education course. Contact the Hammond Community Development Department at (219) 853-6358 ext. 2 for information about local education options, or call 877-GET-HOPE (877-438-4673) to find an approved course.

I am a Hammond police officer, firefighter, or teacher. What extra benefits do I get?+

The City of Hammond Homebound Program provides the full $10,000 in down payment assistance specifically to Hammond Police, Fire, and Educational Professionals, as well as full-time employees of the City of Hammond, Hammond Water Works, Hammond Port Authority, Hammond Sanitary District, and Hammond Housing Authority. Other qualifying buyers receive up to $2,500. This can be combined with the South Suburban Housing Center ($15,000) and Lake County ($5,000) programs for potentially $30,000 in local assistance alone.

Can I use FHA or VA loans with all of these programs?+

Not all programs allow FHA or VA financing. The South Suburban Housing Center $15,000 program requires conventional financing only — FHA, VA, and USDA loans are not eligible, and you must use one of their participating lenders. However, the City of Hammond Homebound Program and Lake County program do not have this restriction, and the IHCDA state programs are designed to work with FHA, VA, and conventional loans.