Indiana buyers can get down payment help through IHCDA programs and some lenders' own programs. On the program sheet a lender sent me September 30, 2026, the IHCDA assistance is a repayable second mortgage of roughly 2.5% to 4% of the price, and the credit and debt-to-income minimums are specific. Here's what it lists and what to ask before you count on it.
I'm Wes Johnston, a Realtor with Trueblood Real Estate in Fishers. I'm not a lender and this page isn't financial advice. The figures below come from a program sheet a participating lender sent me on September 30, 2026. Programs, amounts and limits change, so your lender's current terms control.
Here's the thing most buyers miss: assistance isn't a gift. It's another loan sitting behind your main mortgage, with fees, and it comes with limits on income and price. It can still be the difference between buying now and waiting, as long as you see the full cost first.
Yes. The Indiana Housing and Community Development Authority (IHCDA) offers down payment assistance, lower-rate mortgages and a mortgage tax credit through participating lenders (IHCDA: Homebuyers). You apply through a lender, not directly with IHCDA. IHCDA publishes a list of participating lenders.
Some lenders also run their own programs, which I cover below. IHCDA renames and reworks its programs from time to time, so the names and amounts here are a snapshot, not a promise.
This is what the lender's program sheet listed on September 30, 2026. Each one pairs the assistance with a first mortgage.
For example, 4% assistance on a $300,000 purchase with an FHA loan is $12,000. It would be added to your loan balance as a second mortgage and paid back.
Source: a participating lender's program sheet received September 30, 2026. Program names and terms also appear on IHCDA's homebuyer programs page; check that page and your lender for current terms. Purchase-price limits weren't on the sheet.
Not on these programs. The sheet lists every IHCDA option as a non-forgivable second mortgage, which means you repay it. First Step and Step Down also carry a 1% origination fee plus $1,600 in lender fees.
That doesn't make it a bad deal. It does mean you should ask your lender for the monthly payment with and without the assistance, the total cash to close, and what happens to the second mortgage if you sell or refinance. Get those numbers before you write an offer.
On the sheet, every IHCDA program lists a minimum credit score of 660 and a maximum debt-to-income ratio of 45%. Debt-to-income is your monthly debt payments divided by your gross monthly income. Your lender sets the final requirements for your loan, and they can be stricter than a program's minimums.
Yes. Some lenders have their own. The sheet lists one example, Ruoff's Home Now program, so you can see how a lender program differs:
I'm listing this as an example of what a lender program looks like, not as a recommendation. Compare it against an IHCDA option and at least one other lender.
Source: the same lender program sheet, September 30, 2026.
Yes, and it's a separate thing from down payment assistance. A seller can agree in the contract to pay part of your closing costs, up to a cap that depends on your loan. Seller help can go toward closing costs and prepaids, not your down payment.
These are the caps the lender listed, as a percentage of the price, for a home you'll live in:
| Loan | Situation | Seller help cap |
|---|---|---|
| Conventional | Down payment under 10% (loan-to-value over 90%) | 3% |
| Conventional | Loan-to-value 75.01% to 90% | 6% |
| Conventional | Loan-to-value 75% or less | 9% |
| Conventional | Investment property | 2% |
| FHA | Primary residence, any loan-to-value | 6% |
| VA | Primary residence, any loan-to-value | 4% |
| USDA | Primary residence, any loan-to-value | 6% |
For example, on a $300,000 home with 5% down on a conventional loan, the cap is 3%, or $9,000. The seller has to agree to it in the offer, and the lender checks it against your loan.
Source: the lender program sheet, September 30, 2026. Your lender confirms the cap that applies to your loan.
Talk to a participating lender before you start looking at houses. They can check the income limit, the purchase-price limit, your credit score and your debt-to-income ratio, and show you what the assistance does to your payment and your cash to close. If you don't have a lender yet, I can give you names to call. I'm not a lender, and I don't get paid for sending you to one.
Then bring me the numbers, and I'll tell you how they affect the offer: which homes fit, how much seller help to ask for, and how it compares with waiting.
More buyer questions, answered: the steps to buying your first home, who pays what at closing, the buyer net sheet calculator, the mortgage calculator, how earnest money works, and what happens if the appraisal comes in low.
If you're counting on assistance or seller help, I build it into the offer strategy from the start. Tell me your budget and what your lender told you, and I'll show you what fits.
I'm not a lawyer, and I'll tell you when a question belongs with one.
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This page is general information, not financial or legal advice. Program terms, income limits and amounts change; confirm current terms with a participating lender. Figures from a lender program sheet received September 30, 2026.