The state of Indiana will genuinely help with your down payment — if you know the programs exist and use an approved lender. Here's the plain-English map, current as of this writing.
The most expensive sentence in first-time buying is 'I didn't know that existed.' Indiana's housing authority — IHCDA — runs real down-payment assistance programs, and there are regional programs on top of them. Terms change, so treat this as the map, verify the current numbers with an IHCDA-approved lender, and don't leave state help unclaimed.
The IHCDA lineup, as of this writing
- First Place — down-payment assistance structured as a forgivable second mortgage: stay in the home through the forgiveness period and the assistance is forgiven rather than repaid.
- First Step — assistance up to 6% of the purchase price as a repayable second, paired with a 30-year fixed FHA or conventional loan.
- Next Home — assistance up to 3.5%, aimed at buyers who may not be first-timers.
All of them share the same plumbing: you must use a lender from IHCDA's approved list, complete homebuyer education through an approved provider, and fit income and purchase-price limits that vary by county. That's not red tape to dodge — the education requirement alone saves buyers real mistakes.
The regional layer worth watching
- FHLBank Indianapolis 'Launch' — an annual down-payment assistance round (up to $20,000 as of the most recent cycle) with limited funding that opens and closes fast.
- 'HomeBoost' — up to $25,000 for first-generation, first-time buyers within income limits; also annual-window funding.
Annual-window programs reward buyers who are ready before the window opens: pre-approved, educated, documents in hand. If your timeline is next spring, the preparation starts now.
The honest fine print
- Assistance seconds affect your payoff math if you sell or refinance early — know your program's terms before you count the money as free.
- Program funds and terms change year to year; the figures above are as of this writing. Your lender confirms current reality, not a website — ours included.
- Around Bloomington, pairing a program with USDA eligibility in Owen, Lawrence, or Greene County can stack into a genuinely low cash-to-close. We'll run the combination with you.
Tell us what you're working with and a local agent will run the actual figures with you — no cost, no pressure.