Down payment assistance

Down payment help in Indy, explained.

Short answer: Indianapolis buyers have three main sources of down payment help: INHP ($7,500 to $24,999, Marion County only), IHCDA's First Step and Next Home (statewide, a percentage of the price), and bank and credit union programs that depend on the address. IHCDA's help isn't a grant: it's a 0% second mortgage with no monthly payment, repaid when you sell or refinance. You get it through a lender that works with the program.

By Trevor St. Aubin, REALTOR® with @properties · Updated Oct 27, 2026

For most first-time buyers, the down payment is the final boss. Not the mortgage payment, not the inspection, just that one big pile of cash. Indianapolis has more ways around it than most people realize. Here's every program worth your time, what it really costs you, and how to actually use it, in plain English.

Find my programs ↓ Compare them ↓

Checked Oct 20, 2026

The big three in Indianapolis

INHP
Marion Countyup to $24,999

IHCDA
Statewideup to 3.5%

Bank grants
By addressvaries

Amounts from each program's own published guidelines. Your amount depends on income, the home and the lender. Details below.

$85.

Real buyer, real closing

That's how much one of my first-time buyers brought to the closing table. Not $8,500. Eighty-five dollars, about what I spend at Costco when I only went in for paper towels. Down payment assistance did the heavy lifting, and they walked out with keys.

Not everyone lands at $85. But I've watched enough people assume homeownership was five years away when it was really one phone call away, so I made this page.

Side by side

The short version.

If you only read one thing, read this. Every program here is real and active as of October 20, 2026.

Program	Where	How much	Paid back?	First-time buyers only?
INHP down payment assistance	Marion County*	$7,500 to $24,999	Terms vary; ask INHP	Built for first-timers
IHCDA First Step	All of Indiana	A percentage of the price	Yes, when you sell or refinance	Yes**
IHCDA Next Home	All of Indiana	2.5% or 3.5% of the price	Yes, when you sell or refinance	No
Bank and credit union programs	Depends on the address	Varies, often grants	Usually not	Varies
FHLBank HomeBoost	Indiana and Michigan	Up to about $20,000	Only if you sell within 5 years	Yes, and first-generation

*INHP's assistance isn't available in Lawrence, Beech Grove, Southport or Speedway. **Waived for veterans and for homes in IHCDA "targeted" census tracts.

The programs

Here's where the money lives.

Marion County

INHP

Indianapolis Neighborhood Housing Partnership

If you're buying inside Indianapolis, start here. INHP is a local nonprofit, and it's the Swiss Army knife of first-time buying: homebuyer education, one-on-one coaching, their own mortgage built for people who are new at this, and down payment assistance on top.

Their published guidelines list assistance from $7,500 to $24,999 that can go toward your down payment and closing costs. It's paired with an INHP mortgage that has no mortgage insurance, can roll repair money into the loan, and has credit rules that give people a real shot (a 620 score is the floor, and up to $3,000 of medical collections can be worked into the loan).

Homes in Marion County
Not in Lawrence, Beech Grove, Southport or Speedway
620 credit score minimum
Income limits by household size
Starts with their homebuyer class

My honest take: INHP is thorough, which also means it's not instant. Their process has steps (the class, an online assessment, documents, then a meeting with their lending team). Start a couple of months before you want to be house hunting, not the week you find the one.

INHP's program details ↗︎

Statewide

IHCDA

Indiana Housing & Community Development Authority

Indiana's housing agency doesn't lend to you directly. It works through approved lenders, so you get IHCDA help by picking a lender on their list. There are three versions worth knowing:

First Step. For first-time buyers, which IHCDA defines as anyone who hasn't owned a home in the last three years. It comes with income and purchase price limits (table below). Veterans and homes in "targeted" census tracts skip the first-time rule.
Next Home. Open to repeat buyers too. Assistance is 2.5% or 3.5% of the purchase price (or appraised value, whichever is lower). Income limits apply, but there's no price limit.
Step Down. No down payment money at all, just a better rate. Worth asking about if you have the cash but want a lower payment.

All three are 30-year fixed loans, FHA or conventional. Expect a $250 reservation fee and a free online homebuyer course (Fannie Mae's HomeView or Freddie Mac's CreditSmart). Lenders generally look for a credit score of 660 or higher.

The part people miss: IHCDA's help is not free money anymore. It's a 0% second mortgage with no monthly payment, and you pay it back when you sell, refinance, stop living there, or reach the end of the loan. If a blog told you it's "forgiven after nine years," that's the old First Place program, which ended December 31, 2023. The internet has not gotten the memo.

IHCDA's programs ↗︎ Approved lenders ↗︎

IHCDA income and price limits for the Indy area

These apply to First Step, Step Down and Next Home (FHA), effective May 25, 2026. Income is your whole household's, before taxes. Next Home conventional loans use a higher income limit ($154,420) and have no price limit.

Where	Income, 1–2 people	Income, 3+ people	Max price
Marion County	$110,300	$126,845	$566,355
Marion County, targeted tracts	$132,360	$154,420	$692,211
Hamilton County	$110,300	$126,845	$566,355
Boone, Hendricks, Johnson	$110,300	$126,845	$566,355

Source: IHCDA income and acquisition limits. Limits change every year, usually in spring.

Bank and credit union programs worth asking about

This is the sneaky-good category. Several lenders here have their own programs with grant money, little cash up front, or no PMI. Most depend on the home's census tract or your income, so the exact address matters. A good lender will check it for you in about two minutes.

Centier Bank

Neighborhood Loan: very little cash up front and no PMI, for eligible buyers or neighborhoods in Marion and Hamilton County.

Indiana Members Credit Union

Welcome Home100: built for first-time buyers with strong credit, little cash up front and no PMI.

PNC

Community Loan: low cash up front, no PMI, and grant money in eligible areas.

Chase

Homebuyer Grant and DreaMaker: grant money toward costs in eligible census tracts.

KeyBank

Neighbors First Credit: help with closing costs in Key-designated communities.

Fifth Third

Down payment assistance in eligible census tracts, while each year's funds last.

First Merchants

Community Home Lending through their lending center on North Meridian.

FHLBank Indianapolis

HomeBoost grants for first-time, first-generation buyers, through member banks and credit unions. Funds open once a year and go fast; 2026's round is closed.

Buying in Carmel, Fishers, Noblesville or Westfield? Those cities don't run their own down payment programs right now, and INHP stays in Marion County. Hamilton County buyers usually use IHCDA, the lender programs above, or a USDA loan in the northern parts of the county.

How it actually works

From "is this even possible?" to keys.

Take the class first.

Almost every program requires homebuyer education, and it's free or close to it. Do it now. It's a few hours, and you'll know more than most people who've bought three houses.

Talk to the right lender.

Not every lender offers every program, and some barely know they exist. I'm a Realtor, not a lender, so I don't make loans, but I'll introduce you to local lenders who do these programs all the time.

I connect, you choose

Get pre-approved with the help built in.

Your pre-approval should show the assistance in the numbers. That tells us your real price range and exactly what you'll need at closing.

Shop inside the lines.

Some programs cap the price, and some depend on the address. I check before we fall in love with a house, not after.

Write an offer that wins anyway.

Assistance can add a few days to the process, so I plan the closing date around it and make sure the listing agent knows your financing is solid.

Close, and bring way less than you thought.

Maybe not $85. But usually a lot less than the number that's been keeping you renting.

The honest part

What nobody puts in the Instagram post.

Some of it gets paid back

A 0% second mortgage is a great deal, but it's still a loan. When you sell, it comes out of your proceeds. Think of it as borrowing from your future self, who will probably be fine with it.

It can cost a little more

Some assistance loans come with a slightly higher rate or extra fees compared to a standard loan. Ask your lender to show both side by side so you can see what the help actually costs.

It takes a little longer

Extra steps mean extra days. Not a deal breaker, just plan for it. I'd rather ask for a slightly longer closing than rush and stress everyone out.

Sellers sometimes get nervous

Some sellers hear "assistance" and assume trouble. A strong pre-approval and a quick call from me to the listing agent fixes most of that.

Money runs out

Grant programs are funded once a year and handed out first come, first served. If you're thinking about buying in the next year, get your paperwork lined up early.

You have to live there

These programs are for your primary home. If you're buying a rental, this isn't your lane (a duplex you live in can be, though).

Find my programs

Tell me a little. I'll tell you what fits.

Answer a few quick questions and I'll reply, usually the same day, with the programs you likely qualify for and a lender or two who actually does them. No pressure, no spam, and nobody pulls your credit.

Down payment questions

The stuff people Google at midnight.

Is down payment assistance in Indiana forgivable?

IHCDA's current programs (First Step and Next Home) are not forgivable. They're a 0% second mortgage with no monthly payment, repaid when you sell, refinance or move out. Forgivable assistance ended with the First Place program at the end of 2023. Some bank grants don't need to be paid back at all, and HomeBoost only asks for money back if you sell within five years.

Do I have to be a first-time buyer?

Not always. IHCDA counts you as first-time if you haven't owned a home in the last three years, and Next Home is open to repeat buyers. First Step's rule is waived for veterans and for homes in targeted census tracts.

How much money can I make and still qualify?

For IHCDA's First Step in Marion and Hamilton County, the 2026 limit is $110,300 for a one- or two-person household and $126,845 for three or more, higher in targeted tracts. Next Home conventional allows up to $154,420. INHP and the bank programs set their own limits, so a lender should check you against each one.

Can I use down payment assistance in Carmel or Fishers?

Yes, through IHCDA and lender programs, as long as the home and your income fit the limits. INHP's assistance is for Marion County only, and Hamilton County cities don't run their own programs right now.

Will using assistance make my offer weaker?

It doesn't have to. What sellers care about is whether you'll close on time. A solid pre-approval that already includes the assistance, a realistic closing date and an agent who talks to the listing agent go a long way.

What credit score do I need?

INHP's mortgage starts at 620. IHCDA lenders generally look for 660 or higher. If you're below that, INHP's coaching is built for exactly this, and it's free.

Do you make the loan?

No. I'm a Realtor with @properties, not a lender. I help you find the programs, connect you with lenders who use them, and then help you find and win the house.

Keep going

Mortgage calculatorYour real monthly payment, with the actual property tax for the address. Property taxes in IndyWhat you'll pay, by area, with homestead savings. First-time buyer guideWhat it costs, the loans, and every step from pre-approval to keys. Buying with meHow I work with first-time buyers, start to finish.

Programs, limits and funding change. This is general information checked on October 20, 2026, not a loan offer or a commitment from any lender or agency. Confirm eligibility and terms directly with the program or a lender.