See programs you qualify for
Get Matched Free →By Tyler Thompson · Licensed Real Estate Agent · Updated April 12, 2026
Homebuyer Programs in Terre Haute, IN (2026)
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
| 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 → |
| Hoosier Homes Down Payment Assistance | Forgivable Loan | Up to 5% of the purchase price | No | View → |
| United Way of the Wabash Valley Home Down Payment Assistance Program | Grant | 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 | No | View → |
| Wabash Valley Habitat for Humanity Homeownership Program | Zero-Interest Loan | Affordable 0% interest mortgage financing | Yes | View → |
- Type:
- Grant
- Amount:
- Up to $20,000
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 5% of the purchase price
- First-time only:
- No
- 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
- 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.
Frequently Asked Questions
How much down payment assistance can I get in Terre Haute?+−
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 Terre Haute?+−
How does the Wabash Valley Habitat for Humanity program work?+−
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