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Homebuyer Programs in Terre Haute, IN (2026)

Population: 58,450 | Median home price: $155,000 | Est. closing costs: $3,000 - $4,500

Last updated April 12, 2026

Skyline of Terre Haute, IN

Terre Haute is a city in western Indiana and the county seat of Vigo County, home to Indiana State University and a median home price of approximately $155,000. Homebuyers in Terre Haute benefit from a solid mix of local and state assistance programs. The United Way of the Wabash Valley offers a Home Down Payment Assistance Program providing up to $4,000 for qualifying buyers under 80% AMI. The IHCDA First Place Program offers up to 6% of the purchase price as a forgivable loan, while the FHLBank Indianapolis Launch program provides up to $20,000 in grant funds for qualifying first-time buyers. The Hoosier Homes program offers up to 5% toward down payment and closing costs for buyers in Vigo County. Wabash Valley Habitat for Humanity also provides 0% interest mortgage financing for qualifying families. By combining these local, state, and regional programs, Terre Haute buyers can significantly reduce their out-of-pocket costs.

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
Hoosier Homes Down Payment Assistance
Type:
Forgivable Loan
Amount:
Up to 5% of the purchase price
First-time only:
No
United Way of the Wabash Valley Home Down Payment Assistance Program
Type:
Grant
Amount:
Up to 5% of purchase price (3% down payment + 2% closing costs) for homes up to $80,000; max $4,000 for homes over $80,000
First-time only:
No
Wabash Valley Habitat for Humanity Homeownership Program
Type:
Zero-Interest Loan
Amount:
Affordable 0% interest mortgage financing
First-time only:
Yes

How to Apply

Step 1:

Check your eligibility. Most programs require household income at or below 80% of the area median income for Vigo County. Review the IHCDA income and acquisition price limits for your household size.

Step 2:

Complete homebuyer education. The United Way of the Wabash Valley DPA program requires a financial literacy course. Most state programs also require HUD-approved homebuyer education. Contact the United Way at (812) 235-6287 for information on available courses.

Step 3:

Connect with a local housing partner. United Way of the Wabash Valley at 100 S. 7th St, Terre Haute, IN 47807 can help you access up to $4,000 in down payment and closing cost assistance. Wabash Valley Habitat for Humanity at (812) 234-0707 also provides affordable homeownership opportunities for qualifying families.

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 at or below 80% AMI.

Step 5:

Find a home within program limits. Check IHCDA acquisition price limits for Vigo County. The United Way DPA program provides up to 5% assistance on homes up to $80,000, or a maximum of $4,000 for higher-priced homes.

Step 6:

Submit your applications. Contact United Way at (812) 235-6287 to apply for their DPA program. 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.

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