See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Kokomo, IN (2026)
Kokomo is a mid-sized city in north-central Indiana and the county seat of Howard County, with a median home price of approximately $170,000. While Kokomo does not currently operate a city-funded down payment assistance program with active funding, buyers here benefit from several strong state and regional programs. The IHCDA First Place Program offers up to 6% of the purchase price as a forgivable loan for first-time buyers, and the IHCDA Next Home Program provides up to 3.5% for FHA loans. The FHLBank Indianapolis Launch program offers up to $20,000 in grant funds for qualifying first-time buyers at or below 80% AMI. Habitat for Humanity of the Kokomo Community also provides affordable homeownership opportunities for families earning between 30-50% of the Howard County median income. By combining state and regional resources, Kokomo buyers can access meaningful assistance toward their home 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 |
|---|---|---|---|---|
| FHLBank Indianapolis Launch Down Payment Assistance | Grant | Up to $20,000 | Yes | View → |
| Habitat for Humanity of the Kokomo Community Homeownership Program | Zero-Interest Loan | Affordable mortgage financing with no traditional down payment required | No | View → |
- Type:
- Grant
- Amount:
- Up to $20,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage financing with no traditional down payment required
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most state programs require household income at or below certain limits for Howard County. Review the IHCDA income and acquisition price limits for your household size.
Step 2: Complete homebuyer education. A HUD-approved homebuyer education course is required for most DPA programs. Use the Housing4Hoosiers.org housing counseling services map to find approved counselors near Kokomo, or contact IHCDA for referrals.
Step 3: Explore local options. Habitat for Humanity of the Kokomo Community offers affordable homeownership for families earning 30-50% of the Howard County median income. Contact them to learn about current application windows. The City of Kokomo's Community Development office may also have updated information on local housing assistance.
Step 4: Get pre-approved for a mortgage. Work with an IHCDA-approved lender to access the First Place or Next Home programs. Ask your lender about FHLBank Indianapolis Launch funds, which provide up to $20,000 for qualifying first-time buyers. Local lenders like City of Firsts Community Federal Credit Union and Indiana Heartland FCU can help.
Step 5: Find a home within program limits. Check IHCDA acquisition price limits for Howard County to ensure the home you choose qualifies for state DPA programs.
Step 6: Submit your applications. Your IHCDA-approved lender will help you apply for state programs at closing. FHLBank Launch funds are applied for through your participating lender on a first-come, first-served basis during annual funding rounds.
Frequently Asked Questions
How much down payment assistance can I get in Kokomo?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can pay using these programs?+−
What homebuyer education is required?+−
Can I use the IHCDA Mortgage Credit Certificate in Kokomo?+−
Are there any local Kokomo or Howard County programs?+−
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