See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Indianapolis, IN (2026)
Indianapolis is Indiana's capital and largest city, with a median home price around $240,000 that remains well below the national average. First-time and repeat buyers can tap into significant assistance through the IHCDA First Place Program, which offers up to 6% of the purchase price as a forgivable second mortgage, and the IHCDA Next Home Program, which provides up to 3.5% with forgiveness after just two years. Locally, the Indianapolis Neighborhood Housing Partnership (INHP) offers up to $14,999 in down payment assistance as a deferred loan for buyers in Marion County. By stacking state and local programs, Indianapolis homebuyers could access over $29,000 in combined assistance toward their purchase.
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 → |
| 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:
- 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 |
|---|---|---|---|---|
| Greater Indy Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable mortgage with reduced purchase price | No | View → |
| INHP Down Payment Assistance | Deferred Loan | Up to $14,999 | No | View → |
| SEND Affordable Homeownership Program | Grant | Affordable home purchase with potential closing cost assistance | No | View → |
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with reduced purchase price
- First-time only:
- No
- Type:
- Deferred Loan
- Amount:
- Up to $14,999
- First-time only:
- No
- Type:
- Grant
- Amount:
- Affordable home purchase with potential closing cost assistance
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Review income limits for Marion County, which vary by household size. IHCDA limits range from $82,100 to $138,740, while INHP and other local programs generally require income at or below 80% AMI.
Step 2: Complete homebuyer education. The Indianapolis Neighborhood Housing Partnership (INHP) offers comprehensive homebuyer education and financial counseling. Contact them at 317-610-HOME. Greater Indy Habitat for Humanity also provides courses through their Habitat University program at (317) 921-2121.
Step 3: Get pre-approved for a mortgage. Contact an IHCDA Participating Lender for state programs, or work directly with INHP for their mortgage and down payment assistance package. A minimum credit score of 640 is needed for First Place and 660 for Next Home.
Step 4: Choose your programs. You may be able to combine the IHCDA First Place or Next Home down payment assistance with an IHCDA Mortgage Credit Certificate for up to $2,000 per year in tax credits. If using INHP, their DPA pairs with an INHP mortgage.
Step 5: Find a home within program limits. IHCDA purchase price limits for Marion County range up to $405,350. Make sure the property meets program requirements for owner-occupancy.
Step 6: Submit your application and close. Your lender will process the DPA application alongside your mortgage. Plan for a closing timeline of 30-45 days once your offer is accepted.
Frequently Asked Questions
How much down payment assistance can I get in Indianapolis?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay?+−
What credit score do I need?+−
What homebuyer education is required?+−
Can I combine multiple programs?+−
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