The down payment is the biggest barrier to homeownership for most Indiana buyers — and there are programs specifically designed to help. Your Realty Link connects buyers with IHCDA programs and approved lenders who can make it work.
For many people who want to buy a home in Indianapolis or Central Indiana, the mortgage payment isn't the problem — they can afford the monthly cost of homeownership. The obstacle is coming up with the down payment and closing costs upfront. That's a real and common barrier, and it keeps thousands of qualified buyers renting longer than they need to. The good news is that Indiana has programs specifically designed to bridge that gap. Down payment assistance programs through the Indiana Housing and Community Development Authority (IHCDA) and other sources help eligible buyers get into a home with significantly less out-of-pocket cost at closing. Your Realty Link knows these programs and works with lenders who are approved to originate them.
The primary source of down payment assistance for Indiana home buyers is the Indiana Housing and Community Development Authority (IHCDA), the state agency that administers several programs aimed at making homeownership more accessible. These programs are offered through a network of approved lenders and are available across Indiana, including the Indianapolis metro area and all of Central Indiana.
First Place is IHCDA's flagship program for first-time home buyers — generally defined as someone who hasn't owned a primary residence in the past three years. It provides down payment and closing cost assistance in the form of a second mortgage with below-market rates. The assistance amount and income/purchase price limits are updated periodically, so working with an approved lender is the best way to understand current program parameters.
Next Home is designed for buyers who don't qualify as first-time buyers under the First Place definition. It offers similar assistance structures for repeat buyers who meet income and property requirements.
Beyond IHCDA, some municipalities and counties in Central Indiana have their own homebuyer assistance programs, and certain employers offer homeownership incentives as part of relocation packages. Your lender can help identify all available programs for your specific situation.
Most Indiana DPA programs are structured as a second mortgage — a separate loan that sits behind your primary mortgage and covers the down payment and sometimes a portion of closing costs. Depending on the program, this second mortgage may be:
Forgivable — the balance is forgiven after you remain in the home for a specified period (often several years) without refinancing or selling. If you stay through the forgiveness period, you owe nothing on the assistance.
Deferred payment — no payments are required until you sell, refinance, or pay off the home, at which point the assistance amount comes due.
Many buyers combine IHCDA assistance with an FHA loan, using the DPA to cover FHA's 3.5% down payment requirement and sometimes closing costs — resulting in very little cash needed at closing. Some programs also work with conventional loans for buyers with stronger credit who want to avoid FHA's mortgage insurance structure.
Indiana's primary DPA program for first-time buyers, offering down payment and closing cost help through approved lenders.
Assistance for repeat buyers who meet income and property requirements across Indiana.
Combining FHA financing with down payment assistance lets qualified buyers minimize out-of-pocket costs at closing.
Your Realty Link connects buyers with lenders approved to originate IHCDA programs and other DPA products.
We introduce you to a lender approved to originate IHCDA programs who can evaluate your eligibility and explain current program terms.
Your lender reviews your income, credit, and household situation against current program requirements to identify the best fit.
Once your DPA is confirmed, you receive a pre-approval that reflects the full financing picture — primary loan plus assistance.
We search for homes that meet program property requirements and your personal criteria — keeping both in view throughout the process.
We manage the offer and transaction; your lender coordinates the DPA approval alongside the primary loan for a single, smooth closing.
Your Realty Link is a MIBOR member brokerage that has helped first-time buyers across Indianapolis and Central Indiana navigate DPA programs successfully. Janet Giles-Schultz and our team understand how these programs work, how to find homes that meet program requirements, and how to keep the transaction moving efficiently when there's a second loan involved. If the down payment is what's standing between you and homeownership, we want to help you find a path that works.
IHCDA stands for the Indiana Housing and Community Development Authority — the state agency that administers Indiana's primary down payment assistance programs, including First Place (for first-time buyers) and Next Home (for repeat buyers). Both provide assistance as a second mortgage that may be forgivable over time. Contact an IHCDA-approved lender for current program details and amounts.
Qualification generally depends on income limits (varying by county and household size), credit score minimums, the purchase price of the home, and primary residence intent. First-time buyer status is required for some programs. An IHCDA-approved lender can review your specific situation and identify which programs you qualify for.
Yes. Many Indiana buyers combine IHCDA assistance with an FHA loan, using the DPA to cover FHA's 3.5% down payment and sometimes closing costs. This combination allows buyers with modest savings to purchase a home with very little out-of-pocket cost at closing.
It depends on the program. Some programs are forgivable second mortgages — the balance is forgiven after you stay in the home for a specified period. Others are deferred-payment loans due when you sell or refinance. Your lender will explain the specific repayment structure for any program you use.
Call Your Realty Link and we'll connect you with an IHCDA-approved lender who can check your eligibility at no cost.
Pre-approval — including DPA eligibility — is the first step to knowing exactly what you can buy.
Get Connected With a Lender →