First Step (formerly First Place)
Indiana Housing and Community Development Authority (IHCDA) — state housing finance agency
Amount: Down payment assistance equal to 5% of the home's purchase price, structured as a non-forgivable second mortgage (0% interest, no monthly payments, repaid when the home is sold, refinanced, or the first mortgage is paid off/matures). Note: a small number of secondary sources describe this as 'up to 6%' — IHCDA's own homebuyers page (in.gov/ihcda/homebuyers) states 5%, which was treated as authoritative.
Type: Forgivable/deferred second mortgage (non-forgivable — deferred repayment) paired with a 30-year fixed-rate FHA or conventional first mortgage
Must be a first-time homebuyer (or purchasing in a targeted census tract, which waives the first-time requirement); minimum credit score around 640 (660 for some conventional/FHA scenarios) per IHCDA program guides; must meet county-based income and purchase price limits set annually by IHCDA (statewide income limits roughly $88,200-$141,000 depending on county/household size per current guides); borrower must contribute at least 1% of purchase price or $1,000, whichever is greater; completion of IHCDA-approved homebuyer education required; must use an IHCDA Participating Lender. Verify exact current-county limits at in.gov/ihcda/homebuyers/income-and-acquisition-limits.
Next Home
Indiana Housing and Community Development Authority (IHCDA)
Amount: Down payment assistance of up to 3.5% of the purchase price (some program guides list 2.5% or 3.5% tiers depending on loan type/purchase price); structured as a deferred second mortgage at 0% interest with no monthly payments, forgiven after a set period (sources indicate roughly 2-3 years, or repaid upon sale/refinance before then).
Type: Deferred/forgivable second mortgage paired with a 30-year fixed-rate FHA or conventional first mortgage
Open to both first-time AND repeat homebuyers (no first-time requirement, unlike First Step); minimum credit score of 640-660 depending on loan type; no stated purchase price cap in some guides, but subject to standard IHCDA income limits by county; must use an IHCDA Participating Lender; homebuyer education typically required. Confirm current-year specifics with an IHCDA-approved lender or in.gov/ihcda/homebuyers/programs.
HomeBoost Down Payment Assistance
Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) — regional program available in Indiana and Michigan, distributed through member financial institutions
Amount: Up to $25,000 toward down payment and closing costs, for the 2026 program round opening July 8, 2026.
Type: Grant-style down payment/closing cost assistance, disbursed only through participating FHLBank Indianapolis member lenders (not a direct-to-consumer application)
Must be BOTH a first-generation homebuyer AND a first-time homebuyer; household income at or below 120% of Area Median Income (AMI); must intend to purchase a primary residence in Indiana or Michigan; must complete pre-purchase homebuyer education; must contribute a minimum of $500 toward the purchase; must apply through a participating member bank/credit union, not directly to FHLBank.
Launch Down Payment Assistance
Federal Home Loan Bank of Indianapolis (FHLBank Indianapolis) — regional program, distributed through member financial institutions
Amount: Up to $20,000 for down payment, closing costs, housing counseling costs, and buyer-broker fees. Note: the 2026 round opened April 14, 2026 and funds are already exhausted for this year as of this research — worth mentioning to set expectations for applicants, though it is expected to recur in future annual rounds.
Type: Grant-style down payment/closing cost assistance, disbursed only through participating FHLBank Indianapolis member lenders
First-time homebuyer status required; household income at or below 80% of Area Median Income (AMI); must complete pre-purchase homebuyer education; minimum $500 borrower contribution; must apply for the first mortgage through a participating FHLBank Indianapolis member institution.