Two Down Payment Assistance Programs From IHCDA In Indiana

Get Help With Your Down Payment

If you’re looking for down payment assistance in Indiana, you’re in luck. The Indiana Housing and Community Development Agency (IHCDA) offers two options for first time property purchasers who need help coming up with the funds for the down payment.

Indiana Down Payment Assistance
Indiana Down Payment Assistance

One program is called “Helping To Own (H2O)”:

HELPING TO OWN (H2O)

  • First-time homebuyers only, unless purchasing in a Targeted area

  • FHA 30-Year fixed loans only

  • 100% financing

  • Down Payment Assistance (DPA) grant of 3.5%, does not have to be re-paid

  • Program Income limits Apply

  • Minimum credit score of 660

  • Reservation fee $100

The other program is named “NEXT HOME WITH MORTGAGE CREDIT CERTIFICATE (NH/MCC)”:

NEXT HOME WITH MORTGAGE CREDIT CERTIFICATE (NH/MCC)

  • First time homebuyer unless purchasing in a targeted area (see Program Guide for targeted areas)

  • Income and Acquisition limits apply

  • 30 year fixed rate (set by IHCDA)

  • Minimum credit score of 660 for FHA or minimum of 640 for Conv

  • Federal Tax benefit

  • FHA or Conv financing eligible

  • 2 year affordability period

  • DPA – 3.5% of purchase price or appraised value, whichever is less for FHA or 3% of purchase price or appraised value, whichever is less for Conv

  • No cash back at closing except for what the Mortgagor paid into the loan

  • Reservation fee $100

To see an overview of these two DPA programs, visit the IN.gov webpage here. To get more in depth explanation of how down payment assistance works, as well as the steps to get the application process started, visit this page.





More Indiana Down Payment Assistance

In addition to these statewide programs, you should also check to see if there are local programs offered in Indiana that provide additional help that can be applied toward your down payment.