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Get Matched Free →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 → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | 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:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- 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
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.
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.
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.
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.
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.
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.