Last updated: July 27, 2026 · Verified against IHCDA, HUD, FHA official data
Indiana First-Time Home Buyer Programs 2026: IHDA First Home & Next Home Grants
The Indiana Housing and Community Development Authority (IHCDA) offers up to $6,000 through First Home (first-time buyers) and $4,000 through Next Home (repeat buyers) — both at 0% interest and fully forgiven after just 2 years. Combined with an FHA loan, you can buy a home in Indiana with $0 out of pocket.
First Home DPA
$6,000
Next Home DPA
$4,000
Min Credit
640
Forgiveness
2 Years
⚠️ ATTENTION: NOT ALL LENDERS ARE APPROVED FOR IHDA PROGRAMS
Don't Waste Time with the Wrong Lender — Most Are Not IHDA-Approved
The IHDA program requires you to work with an IHDA-approved participating lender. Using a lender that isn't certified means your $6,000 DPA grant disappears — even if you qualify. Don't waste weeks in underwriting only to find out at closing. Match with a verified IN-approved lender right now:
🏆 Top 5 IHDA-Approved Lenders in Indiana (2026)
You must use an IHDA-approved lender to get the First Home or Next Home DPA. Here are the top 5 ranked by rate, fees, and IHDA expertise:
| # | Lender | Rate | Fees | Min Credit | Close | Best For | Apply |
|---|---|---|---|---|---|---|---|
| #1 | Rocket Mortgage 🏆 BEST OVERALL | 6.50% | 0.5% | 640 | 21-30d | Best overall + fastest close | Apply → |
| #2 | First Internet Bank 🏦 IN LOCAL | 6.45% | 0.5% | 640 | 30-45d | Best IN-local IHDA expert (Indianapolis) | Apply → |
| #3 | Ruoff Mortgage ⭐ IN FAVORITE | 6.50% | 0.5% | 640 | 30-40d | Best IN-local lender (Fort Wayne HQ) | Apply → |
| #4 | Guild Mortgage 📋 DPA EXPERT | 6.55% | 0.5% | 640 | 30-40d | Best for IHDA First Home DPA | Apply → |
| #5 | Fairway Independent ⭐ TOP RATED | 6.50% | 0.5% | 640 | 25-35d | Highest customer rating 4.7/5 | Apply → |
Rates shown are estimates for IHDA first mortgage + DPA. Your actual rate depends on credit score, DTI, and loan type. Compare personalized rates →
IHDA DPA Programs & Grants 2026 Explained
IHCDA offers two main down payment assistance programs. Both are 0% interest and forgiven after just 2 years:
For first-time home buyers (haven't owned a home in the past 3 years).
- ✓Up to $6,000 in DPA
- ✓0% interest — no interest ever
- ✓Forgiven after 2 years of on-time payments
- ✓Below-market 30-year fixed rate
- ✓Available with FHA, VA, USDA, Conventional
- ✓Min 640 credit score
For repeat buyers who have owned a home before — or first-time buyers who want a smaller DPA.
- ★Up to $4,000 in DPA
- ★0% interest — no interest ever
- ★Forgiven after 2 years of on-time payments
- ★Below-market 30-year fixed rate
- ★Available with FHA, VA, USDA, Conventional
- ★No first-time buyer requirement
Real Example: Buying a $200,000 Home in Indiana with IHDA
With IHDA First Home + FHA
- Home price: $200,000
- FHA down payment (3.5%): $7,000
- IHDA First Home DPA: -$6,000
- Your out-of-pocket: $1,000
- Plus closing costs partially covered!
Monthly Payment Estimate
- First mortgage (IHDA FHA, 6.25%): $1,096/mo
- FHA MIP: $100/mo
- Property taxes (est.): $167/mo
- Homeowners insurance: $100/mo
- DPA payment: $0/mo (forgiven after 2 yrs)
- Total: ~$1,463/month
IHDA Income Limits & Purchase Price Limits 2026 by County
| County / Region | 1-2 Person | 3+ Person | Max Purchase Price |
|---|---|---|---|
| Marion County (Indianapolis) | $92,000 | $106,000 | $350,000 |
| Hamilton County (Carmel/Fishers) | $108,000 | $124,000 | $475,000 |
| Lake County (Gary) | $92,000 | $106,000 | $350,000 |
| Allen County (Fort Wayne) | $92,000 | $106,000 | $375,000 |
| St. Joseph County (South Bend) | $88,000 | $101,000 | $350,000 |
| Tippecanoe County (Lafayette) | $92,000 | $106,000 | $375,000 |
| Vanderburgh County (Evansville) | $88,000 | $101,000 | $325,000 |
| Most Rural IN Counties | $82,000 | $94,000 | $300,000 |
Income limits based on IHCDA 2026 guidelines. Check approved lenders for your exact county limits.
Compare IHDA-Approved Lenders in 60 Seconds
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Compare IN Lenders →Step-by-Step: How to Apply for Indiana IHDA DPA
Complete Homebuyer Education
Take a HUD-approved 8-hour homebuyer education course. Available online through IHCDA's approved providers (~$75-99). You receive a certificate valid for 1 year.
Get Pre-Approved with an IHDA-Approved Lender
IHDA must be processed through an approved lender. There are 60+ approved lenders statewide. They will determine your eligibility and the maximum DPA you qualify for.
→ Find IHDA-approved lenders near you →Choose Your Loan Type
Work with your lender to select FHA (3.5% down, 640 score), VA (0% down, veterans), USDA (0% down, rural areas), or Conventional (3-5% down, 640+ score). FHA + IHDA First Home $6K DPA is the most common combination — covers most of the 3.5% down on homes up to $171,000.
Find Your Home & Make an Offer
Shop within the purchase price limits for your county. The home must be your primary residence. Single-family homes, condos, and townhomes qualify. No investment properties.
Close on Your New Home
IHDA adds about 1 week to the typical closing timeline. Budget 45-60 days total. Your lender handles all IHCDA paperwork. The DPA is recorded as a second lien at closing — make 24 months of on-time payments and it's fully forgiven. Free money.
Frequently Asked Questions
What is the IHDA first-time home buyer program?
Does IHDA DPA have to be repaid?
What are the IHDA income limits for 2026?
What credit score do I need for IHDA?
Can I use IHDA with FHA, VA, or USDA loans?
Related Guides
Get Pre-Approved for IHDA DPA
Check your eligibility and get matched with an IHDA-approved lender near you.
Check Eligibility Free →Free · No SSN required · See if you qualify for $6K