See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Lafayette, IN (2026)
Lafayette is a growing city in west-central Indiana and the county seat of Tippecanoe County, home to Purdue University and a median home price of approximately $245,000. Homebuyers in Lafayette can take advantage of several state and local programs to reduce upfront costs. The IHCDA First Place Program offers up to 6% of the purchase price as a forgivable loan, while the IHCDA Next Home Program provides up to 3.5% for FHA loans. The FHLBank Indianapolis Launch program provides up to $20,000 in down payment and closing cost assistance for first-time buyers at or below 80% AMI. Locally, Lafayette Neighborhood Housing Services offers homebuyer education, credit coaching, and down payment assistance for low-to-moderate income families, and Habitat for Humanity of Lafayette provides zero-interest mortgage financing for qualifying households. By combining state and local resources, Lafayette buyers can stack significant assistance to make homeownership more affordable.
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 Lafayette Homeownership Program | Zero-Interest Loan | Affordable zero-interest mortgage financing; homeowners save $50,000-$70,000 in interest | No | View → |
| Hoosier Homes Down Payment Assistance | Forgivable Loan | Up to 5% of the purchase price | No | View → |
| Lafayette Neighborhood Housing Services Homebuyer Program | Grant | — | No | View → |
- Type:
- Grant
- Amount:
- Up to $20,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable zero-interest mortgage financing; homeowners save $50,000-$70,000 in interest
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the purchase price
- First-time only:
- No
- Type:
- Grant
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most programs require household income at or below 80% of the area median income for Tippecanoe County. Review the IHCDA income limits for your household size.
Step 2: Complete homebuyer education. Lafayette Neighborhood Housing Services (Homestead Consulting Services) offers HUD-approved pre-purchase coaching and homebuyer education courses. Contact them at 765-771-1300 to enroll.
Step 3: Connect with a local housing partner. Lafayette Neighborhood Housing Services at 100 Executive Drive, Suite J, Lafayette, IN 47905 can walk you through available down payment assistance options and help with budgeting and credit coaching.
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.
Step 5: Find a home within program limits. Check IHCDA acquisition price limits for Tippecanoe County to ensure the home you choose qualifies for state DPA programs.
Step 6: Submit your applications. Your lender will help you apply for IHCDA 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 Lafayette?+−
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 Lafayette?+−
How does the Habitat for Humanity of Lafayette program work?+−
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