Down Payment Assistance & First-Time Home Buyer Resources
Buying a home may be more affordable than you think. Many buyers are surprised to learn they don't need a 20% down payment, and some may qualify for assistance programs that help cover down payment or closing costs. Explore the resources below to learn more about your options.
Do I Need 20% Down?
Many prospective buyers delay purchasing a home because they believe a 20% down payment is required. While putting more money down can reduce your monthly payment and eliminate private mortgage insurance (PMI) in some situations, it's far from the only path to homeownership.
Today's mortgage options offer a variety of down payment requirements, and many qualified buyers purchase a home with significantly less than 20% down. Understanding what's actually required can help you move forward with confidence instead of waiting years to save more than you may need.
Myth: You Need 20% Down
Reality: Many Buyers Qualify With Less
Every buyer's financial situation is unique, which means there's no one-size-fits-all answer when it comes to a down payment. Depending on the type of loan and your qualifications, some buyers may be eligible to purchase a home with a much smaller down payment than they expected.
The best way to determine your options is by speaking with a trusted lender who can review your income, credit history, and financial goals. You may discover that homeownership is closer than you think.
Assistance May Be Available
Indiana offers several programs designed to help eligible homebuyers with down payment and, in some cases, closing costs. These programs can make purchasing a home more affordable for buyers who qualify.
Eligibility requirements vary based on factors such as income, household size, location, loan type, and purchase price. That's why it's important to explore official resources and work with knowledgeable professionals who can help determine which programs may fit your situation.
Let's Build a Plan Together
Buying your first home can feel overwhelming, but you don't have to figure everything out on your own. One conversation can answer many of your questions and help you understand what steps to take next.
Whether you're ready to buy now or simply gathering information for the future, I'm happy to help you understand the process, explain available resources, and connect you with trusted local lenders who can guide you through your financing options. My goal is to help you make informed decisions at your own pace—without pressure or obligation.
Indiana Down Payment Assistance Programs
Indiana Housing & Community Development Authority (IHCDA)
The state's primary homeownership assistance agency offering several programs, including down payment assistance for eligible buyers through participating lenders.
List of Services
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First Step ProgramRead More List Item 1
Great for many first-time homebuyers
The First Step Program is designed to help eligible first-time buyers take the next step toward homeownership with a competitive fixed-rate mortgage and meaningful down payment assistance. Qualified buyers may receive 5% of the purchase price to help cover eligible down payment and closing costs through participating lenders.
The program is intended to make homeownership more accessible by reducing the upfront cash many buyers worry about most.
You may benefit if you are:
-Purchasing your first home (or otherwise meet the program's definition of a first-time buyer)
-Buying within eligible purchase price and income limits
-Working with a participating lender
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Next Home ProgramItem Link List Item 2
Flexible assistance for many qualified buyers
The Next Home Program is available to many buyers—including some who have owned a home before—and offers competitive financing paired with down payment assistance. Depending on the program option and eligibility, qualified buyers may receive 2.5% or 3.5% of the purchase price to help reduce upfront costs.
This program can be an excellent option for buyers who don't qualify for First Step or whose circumstances are better suited to another financing solution.
You may benefit if you are:
-Purchasing a primary residence
-Meeting current income and purchase price requirements
-Working with a participating lender
Which Program is Right for You?
First Step
Primarliy designed for eligible first-time buyers
5% assistance
Fixed-rate mortgage
Eligibility requirements apply
Next Home
Available to many buyers, including some repeat buyers
2.5% or 3.5% assistance
Fixed-rate mortgage
Eligibility requirements apply
The best program depends on your financial situation, purchase plans, and current eligibility guidelines. A participating lender can help determine which option is the best fit for you. Whether you're ready to buy now or simply exploring your options, the Indiana Housing & Community Development Authority maintains the most current information on available programs, eligibility, and participating lenders.
What The Neighbors Say
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Other Loan Programs Worth Exploring
List of Services
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FHA LoansExplore FHA & Housing Resources List Item 1
Popular low-down-payment mortgage option.
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VA Home LoansExplore the VA Website List Item 2
For eligible veterans, active-duty service members, and some surviving spouses.
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USDA Rural Development LoansUSDA Eligibility Map List Item 3
Eligible rural areas may qualify for no down payment financing through USDA Rural Development. Many communities outside larger city centers in Northeast Indiana may qualify.
Program Disclaimer: Down payment assistance programs, loan requirements, income limits, and eligibility guidelines change over time. This page is intended to provide general educational information and should not be considered financial or lending advice. Always verify current program details with the official Indiana Housing & Community Development Authority (IHCDA) and a participating mortgage lender before making financial decisions.
Frequently asked questions
What is down payment assistance?
Down payment assistance (DPA) refers to programs that help eligible homebuyers cover some or all of their down payment and, in some cases, closing costs. These programs are designed to make homeownership more affordable for qualified buyers. Eligibility varies based on factors such as income, location, household size, and loan type.
Do I have to be a first-time homebuyer to qualify?
Not always. While some programs are specifically designed for first-time homebuyers, others are available to repeat buyers who meet certain eligibility requirements. The best way to determine which programs you may qualify for is by speaking with a participating lender and reviewing the current program guidelines.
What credit score do I need?
Credit score requirements vary depending on the loan program and lender. In general, a higher credit score may provide access to more financing options and better interest rates. Even if your credit isn't perfect, it may still be worth exploring your options rather than assuming you don't qualify.
Can down payment assistance be used for closing costs?
Some assistance programs allow funds to be used toward both your down payment and eligible closing costs, while others have specific restrictions. Program guidelines change periodically, so it's important to review the current requirements with a participating lender.
Are there income limits for down payment assistance programs?
Many down payment assistance programs have income limits and maximum purchase price requirements that vary by county and program. These limits are updated periodically, so it's important to review the latest information through the official Indiana Housing & Community Development Authority (IHCDA) or with a participating lender. Even if you think your income is too high or too low, it's worth checking—you may qualify for programs you weren't aware existed.
How do I know if I qualify?
Qualification depends on several factors, including your income, household size, purchase price, loan type, credit history, and the location of the property you're purchasing. Every buyer's situation is different, which is why getting pre-approved is one of the best first steps.
Do I have to repay down payment assistance?
It depends on the program. Some assistance is provided as a forgivable loan, some may be deferred until you sell or refinance, and others may not require repayment if all program requirements are met. Your lender will explain the specific terms of any assistance program you qualify for before you move forward.
Can I combine down payment assistance with FHA, VA, USDA, or Conventional loans?
In many cases, yes. Some assistance programs are designed to work alongside FHA, VA, USDA, and Conventional mortgage products, provided you meet the eligibility requirements for both the loan and the assistance program. A participating lender can help determine which combinations are available.
What's the first step if I'm interested?
The best place to start is by speaking with a trusted mortgage lender. They'll review your income, credit, debts, and financial goals to determine which loan and assistance programs may be available to you. Once you're pre-approved, you'll have a much clearer understanding of your budget and can begin shopping for homes with confidence.
How can you help me through the process?
My role is to simplify the home buying process and help you make informed decisions every step of the way. I'll explain what to expect, connect you with trusted local lenders who participate in Indiana homebuyer assistance programs, help you understand your financing options, and guide you from your first conversation all the way to closing day. Whether you're ready to buy now or simply exploring your options, I'm here to help without pressure or obligation.
Not Sure Which Program Fits You?
Every buyer's situation is unique. I'd be happy to help you understand your options and connect you with trusted local lenders who participate in Indiana homebuyer assistance programs. There's never any obligation—just honest guidance to help you take the next step.
