Down Payment Path

Down Payment Assistance Programs in Indiana

Indiana offers several down payment assistance programs designed to help homebuyers manage upfront costs. These programs are open to a wide range of buyers, making homeownership more attainable for residents across the Hoosier State.

Next Home Program

The Next Home Program, offered by the Indiana Housing and Community Development Authority (IHCDA), provides financial assistance for down payments and closing costs.

  • Offers up to 3.5% of the loan amount as assistance.
  • Available as a forgivable loan if the buyer stays in the home for at least two years.
  • Pairs with FHA, VA, USDA, and conventional loans through IHCDA-approved lenders.
  • Open to all eligible buyers, not just first-time homebuyers.

Next Home with MCC

The Next Home with Mortgage Credit Certificate (MCC) Program combines down payment assistance with valuable tax savings for homebuyers.

  • Includes up to 3.5% down payment assistance.
  • Provides a federal tax credit for a portion of annual mortgage interest paid.
  • Open to buyers meeting income and purchase price limits.
  • Designed to work with various loan types.

USDA Rural Development Loans

For buyers in rural parts of Indiana, the USDA Rural Development Loan provides affordable financing with no down payment required.

  • Available to low- and moderate-income buyers in USDA-designated rural areas.
  • Offers competitive interest rates and flexible credit requirements.
  • Can be paired with other assistance programs to cover closing costs.

Affordable Home Program

Some local banks and credit unions in Indiana offer the Affordable Home Program for down payment assistance.

  • Grants or low-interest loans are available to assist with upfront costs.
  • Eligibility criteria vary but often extend beyond first-time buyers.
  • Funds are typically limited, so early application is recommended.

Local Assistance Programs

Many cities and counties in Indiana provide additional resources for homebuyers to manage upfront expenses.

  • Programs in cities like Indianapolis, Fort Wayne, and Evansville often offer grants or low-interest loans for down payment and closing costs.
  • Some local initiatives provide targeted benefits for specific professions, such as educators and first responders.
  • Eligibility requirements and funding levels vary by location.

Indiana’s down payment assistance programs aim to reduce financial barriers and make homeownership more accessible. Whether you’re purchasing your first home or upgrading, these resources can help you achieve your dream of owning a home in the Hoosier State.