Indiana’s IHCDA offers a set of programs — First Place, First Step, and Next Home — that pair a mortgage with a forgivable down payment second, plus a mortgage tax credit that can save you money every year you own.
This guide covers what is actually available to first-time buyers in Indiana in 2026 — the agency behind these programs, the loans and down payment help on offer, who qualifies, and how to apply. For the wider local picture, see our Indiana first-time home buyer guide.
The IHCDA and its home loan programs
Indiana’s first-time buyer programs are run by the Indiana Housing and Community Development Authority (IHCDA). Like most housing finance agencies, it does not lend directly — instead it offers below-market first mortgages, bundled with down payment help, through a network of approved local lenders. Its main first-mortgage options are:
- First Place (FP) — for first-time buyers, with the largest down payment help
- First Step — a mortgage-plus-assistance option
- Next Home — available to both first-time and repeat buyers
Most of these can be built on top of an FHA, VA, or USDA loan, or a conventional loan, depending on the product you pick — and the real value comes when you pair one with the down payment assistance below.
Down payment assistance in Indiana
Down payment assistance is the heart of what IHCDA offers, and Indiana gives buyers more than one way to get it. Help comes as a forgivable second, with the amount depending on which program fits you.
- First Step assistance — forgivable second, up to about 5%–6% of the purchase price (verify current figure).
- Next Home assistance — forgivable second, up to 3.5% of the purchase price.
- Helping To Own (H2O) — forgivable second / grant, varies — verify with IHCDA.
If those terms are unfamiliar, our national guide to down payment assistance explains exactly how grants, forgivable second mortgages, and deferred loans differ — and what each one means when you eventually sell or refinance.
How much help could you get?
On a $250,000 home in Indiana, First Step assistance at roughly 5% would provide about $12,500 as a forgivable second, while Next Home’s 3.5% would give about $8,750 and is open to repeat buyers too. Exact percentages vary by product and change over time, so confirm the current First Step and Next Home figures with IHCDA before you plan around a number.
Who qualifies in Indiana?
Every program sets its own rules, and they change periodically, but the common requirements in Indiana look like this:
- Income limits. IHCDA sets income limits by county and program.
- First-time status. First-time status is required for some programs (First Place), waived in targeted areas and for veterans; Next Home allows repeat buyers.
- Credit score. A minimum of 640 is typical. Our guide to credit score requirements covers what moves the needle.
- Homebuyer education. An online homebuyer education course is required for programs with assistance.
- Purchase price limits. Program acquisition-cost/purchase-price limits apply.
Indiana programs worth knowing about
Beyond the standard offerings, Indiana aims extra help at specific buyers and places. Watch for:
- Helping To Own (H2O) — additional down payment help
- Next Home — open to repeat buyers
- Honor Our Veterans provisions — for military and veterans
Mortgage Credit Certificates in Indiana
IHCDA offers a Mortgage Credit Certificate for a federal tax credit on your mortgage interest, though issuance has been intermittent historically — confirm current availability with IHCDA. A Mortgage Credit Certificate is a federal tax credit worth a percentage of the mortgage interest you pay every year for the life of the loan, and where it is available it can usually be combined with the assistance above — putting money back in your pocket each tax season.
How to apply for Indiana assistance
- Set your budget first. Our home affordability guide helps you land on a realistic price range before you start shopping.
- Complete a homebuyer education course. Nearly every Indiana program requires one, and it is usually free and available online.
- Find a participating lender. Not every lender originates IHCDA loans, so ask directly which IHCDA programs a lender offers and have them run your numbers against a few.
- Get pre-approved and lock in the right program for your income, credit, and target home before you make an offer.
One important note: IHCDA program funding and terms change from year to year, and some assistance rounds close when the money runs out. Always confirm current amounts and availability directly with IHCDA before you count on a specific figure. Our first-time home buyer checklist keeps the rest of your process on track.
Indiana first-time buyer programs FAQ
Do I have to be a first-time buyer to get assistance in Indiana?
First-time status is required for some programs (First Place), waived in targeted areas and for veterans; Next Home allows repeat buyers.
What credit score do I need for IHCDA programs?
A minimum of 640 is typical. Keep in mind a program’s own minimum can sit above the loan’s floor, so confirm the exact number with your lender.
Can I use Indiana assistance with an FHA, VA, or USDA loan?
Yes. IHCDA assistance is built to layer on top of a first mortgage, and FHA, VA, and USDA loans are common partners because their own down payment requirements are already low. Your lender structures both pieces so they close together.
What is the difference between First Place, First Step, and Next Home in Indiana?
First Place and First Step are geared toward first-time buyers and carry the larger down payment assistance, while Next Home is open to repeat buyers with a smaller amount (around 3.5%). Exact percentages shift by product and version, and IHCDA’s Mortgage Credit Certificate can sometimes be added for annual tax savings. Because the figures change, confirm the current amounts with an IHCDA-participating lender.
More Indiana city guides
Buying in a specific Indiana metro? See our first-time buyer guides for Indianapolis, each covering the city’s own local down payment programs.
First-time home buyer grants in Indiana
Looking specifically for grant money? Our guide to first-time home buyer grants in Indiana covers which programs are true grants, which are forgivable, and the truth about the widely advertised federal grant.