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Homebuyer Programs in Zionsville, IN (2026)

Population: 32,534 | Median home price: $650,000 | Est. closing costs: $13,000 - $19,500

Last updated April 12, 2026

Skyline of Zionsville, IN

Zionsville is an affluent town of about 33,000 residents in Boone County, just northwest of Indianapolis. The median home price is approximately $650,000, making it one of the higher-priced markets in Indiana. While Zionsville does not currently offer city or county-funded down payment assistance programs, buyers can still access state and nonprofit options including 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. IHCDA state programs like First Step (up to 6% of purchase price) and Next Home also apply, though buyers should verify that the purchase price falls within program limits.

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

How to Apply

Step 1:

Check your eligibility. Most assistance programs require household income at or below 80% of the area median income (AMI) for Boone County. Note that Zionsville's higher home prices may exceed purchase price limits for some programs, so verify limits with your lender.

Step 2:

Complete homebuyer education. HUD-approved housing counseling is available through agencies in the greater Indianapolis area. Contact a local HUD-approved counselor or call (800) 569-4287 to find a course near you.

Step 3:

Get pre-approved for a mortgage through an IHCDA-participating lender. Ask about IHCDA First Step (up to 6% of purchase price for first-time buyers) and IHCDA Next Home (up to 3-4% of purchase price, no first-time buyer requirement). Confirm that Boone County purchase price limits accommodate your target home.

Step 4:

Ask your lender about the Hoosier Homes Down Payment Assistance program, which provides up to 5% of the purchase price as a forgivable second mortgage with no payments and no interest for qualifying buyers at or below 80% AMI.

Step 5:

Explore additional grant funding through the FHLBank Indianapolis Launch program, which offers up to $20,000 in grants for qualifying first-generation, first-time homebuyers. Your lender must be a member of the Federal Home Loan Bank of Indianapolis.

Step 6:

Find a home in Zionsville within program guidelines and submit your purchase agreement. Your lender will coordinate the applicable assistance programs through the closing process.

Frequently Asked Questions

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