See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in South Bend, IN (2026)
South Bend is the fourth-largest city in Indiana and the seat of St. Joseph County, home to the University of Notre Dame and a median home price around $170,000. First-time buyers in South Bend can access significant assistance through the Community Homebuyers Corporation Homeownership Assistance Program, which provides a forgivable second mortgage equal to 20% of the purchase price for homes up to $175,000. The IHCDA First Place Program offers up to 6% of the purchase price in down payment assistance, while the IHCDA Next Home Program provides up to 3.5% for FHA loans. Habitat for Humanity of St. Joseph County and the South Bend Heritage Foundation also offer affordable homeownership paths. By combining local and state programs, buyers in South Bend can potentially stack tens of thousands of dollars in 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 |
|---|---|---|---|---|
| Community Homebuyers Corporation Homeownership Assistance Program | Forgivable Loan | 20% of the home purchase price (forgivable second mortgage) | Yes | View → |
| Habitat for Humanity of St. Joseph County Homeownership Program | Zero-Interest Loan | Affordable mortgage with no down payment required | Yes | View → |
| South Bend Heritage Foundation Homeownership Program | Grant | Rehabilitated and new construction homes sold at affordable prices | No | View → |
- Type:
- Forgivable Loan
- Amount:
- 20% of the home purchase price (forgivable second mortgage)
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage with no down payment required
- First-time only:
- Yes
- Type:
- Grant
- Amount:
- Rehabilitated and new construction homes sold at affordable prices
- First-time only:
- No
How to Apply
Step 1: Check your eligibility. Most programs require household income at or below 80% of area median income (AMI). The IHCDA programs have their own income and credit score requirements, typically a minimum 640 credit score.
Step 2: Complete homebuyer education. The South Bend Heritage Foundation offers monthly in-person seminars and online courses. The City of South Bend also has a free HUD-Certified Housing Counselor available at 574-235-9475.
Step 3: Contact Community Homebuyers Corporation at 574-235-5880 to learn about the Homeownership Assistance Program. You must complete a financial management course and pre-purchase counseling, and you cannot have a signed purchase agreement at the time of application.
Step 4: Get pre-approved for a mortgage through an IHCDA-approved lender. Local options include United Federal Credit Union and CommunityWide Federal Credit Union, both of which participate in state down payment assistance programs.
Step 5: Find a home within program limits. The Community Homebuyers Corporation program caps the purchase price at $175,000. Properties must be owner-occupied, single-family units or condominiums within South Bend city limits.
Step 6: Submit your application and close on your home. The CHC forgivable second mortgage is layered on top of your first mortgage. After meeting ongoing requirements and living in the home for 5 years, the grant is fully forgiven.
Frequently Asked Questions
How much down payment assistance can I get in South Bend?+−
Do I have to be a first-time homebuyer to qualify?+−
What is the maximum home price I can purchase?+−
What homebuyer education is required?+−
Are there options if I do not qualify for the income-restricted programs?+−
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