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Homebuyer Programs in Indianapolis, IN (2026)

Population: 887,213 | Median home price: $240,000 | Est. closing costs: $5,000 - $7,000

Last updated April 12, 2026

Skyline of Indianapolis, IN

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

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

Greater Indy Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with reduced purchase price
First-time only:
No
INHP Down Payment Assistance
Type:
Deferred Loan
Amount:
Up to $14,999
First-time only:
No
SEND Affordable Homeownership Program
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

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