Short answerThe main statewide programs come from the Indiana Housing and Community Development Authority. As of 2026, First Step offers down payment assistance of 5% of the price for first time buyers and Next Home offers 3.5% for first time and repeat buyers, both as second mortgages through participating lenders. The older First Place program ended in 2023.
Statewide programs (IHCDA)
- First Step: down payment assistance for first time buyers, qualified veterans, and buyers in targeted areas, paired with an IHCDA first mortgage.
- Next Home: for first time and repeat buyers.
- Step Down: a reduced rate first mortgage without down payment assistance.
Assistance is structured as a second mortgage. Income limits, purchase price limits, credit requirements, and repayment terms apply. Program terms change, so confirm current details at IHCDA and with a participating lender.
Local programs
Some cities and counties run their own programs. Ask your lender which apply to your target town.
Frequently asked questions
Do I have to repay Indiana down payment assistance?
IHCDA's 2026 program guides describe the First Step and Next Home assistance as non forgivable second mortgages. Read the terms with your lender.
Can veterans use IHCDA programs?
Qualified veterans can be eligible for First Step. Ask a participating lender.
Keep reading
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Sources
Written by John Long, REALTOR®, 1 Percent Lists Indiana Real Estate. Working contractor who has priced hundreds of home inspection repair requests. Former labor relations negotiator for a major manufacturer and U.S. Coast Guard veteran.
John Long, REALTOR® · 1 Percent Lists Indiana Real Estate · (812) 525-5489 · yourpropertynegotiator.com
This page is general information, not a substitute for a professional home inspection, and not legal, tax, insurance, or lending advice. Ask a real estate attorney about contracts and disclosure, a CPA about taxes, your lender about loan rules, and a licensed inspector or tradesperson about your house. Nothing here guarantees a sale price, net proceeds, repair cost, payment, timeline, appraisal, inspection result, or loan approval. Cost figures are planning estimates, not bids. I own Wardmark Property Operations LLC, a contracting company. You are always free to use any contractor you choose.