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Homebuyer Programs in Merrillville, IN (2026)

Population: 36,347 | Median home price: $250,000 | Est. closing costs: $5,000 - $7,500

Last updated April 12, 2026

Skyline of Merrillville, IN

Merrillville is a town of about 36,000 residents in Lake County in Northwest Indiana, part of the greater Chicago metropolitan area. The median home price is approximately $250,000. Homebuyers in Merrillville can access several assistance programs, including the Lake County Homebuyer Assistance Program offering up to $5,000 in grant funds, the Hoosier Homes Down Payment Assistance providing up to 5% of the purchase price as a forgivable loan, and the FHLBank Indianapolis Launch program offering up to $20,000 in grants. By combining state programs like IHCDA First Step (up to 6% of purchase price) with these local and nonprofit options, buyers can significantly reduce their out-of-pocket costs.

County Programs in Lake County

Lake County Homebuyer Assistance Program
Type:
Grant
Amount:
Up to $5,000
First-time only:
No

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

FHLBank Indianapolis Launch Down Payment Assistance
Type:
Grant
Amount:
Up to $20,000
First-time only:
Yes
Habitat for Humanity of Northwest Indiana Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable mortgage with no traditional down payment required
First-time only:
Yes
Hoosier Homes Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to 5% of the purchase price
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 (AMI) for Lake County. The Lake County Homebuyer Assistance Program has specific income limits based on family size.

Step 2:

Complete homebuyer education. HUD-approved housing counseling is available through the South Suburban Housing Center and other agencies in Northwest Indiana. Contact them to enroll in a homebuyer education course, which is required by most assistance programs.

Step 3:

Contact the Lake County Community Economic Development Department at (219) 755-3225 to apply for the Lake County Homebuyer Assistance Program, which offers up to $5,000 in grant funds for homes in the entitlement area including Merrillville.

Step 4:

Get pre-approved for a mortgage through an IHCDA-participating lender. Ask your lender about IHCDA First Step (up to 6% of purchase price) and Next Home programs, as well as the Hoosier Homes Down Payment Assistance (up to 5% of purchase price as a forgivable loan).

Step 5:

Explore additional assistance through the FHLBank Indianapolis Launch program, which offers up to $20,000 in grant funds for qualifying buyers at or below 80% AMI. Your lender must be a member of the Federal Home Loan Bank of Indianapolis to access this program.

Step 6:

Find a home in Merrillville within program guidelines and submit your purchase agreement. Your lender will coordinate the various assistance programs and guide you through the closing process.

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