Down payment assistance in Indiana
Indiana's primary statewide down payment assistance program, run by Indiana Housing and Community Development Authority (IHCDA). Numbers and eligibility reflect the program's published 2025 guidelines.
First Place (Next Home + DPA)
Second mortgage- Maximum assistance
- Up to 6% of loan amount as a second mortgage
- Income limit
- Up to $120,000 (statewide)
- Home price limit
- Up to $431,250
- First-time buyer
- Not required
- Eligible loan types
- FHA, Conventional
- •Second lien is forgiven over 2 years if you stay in the home.
- •MCC tax credit can be paired with the first mortgage.
How Indiana DPA fits into your purchase
Down payment assistance reduces the cash you need at the closing table. Indiana's First Place (Next Home + DPA) pairs with the standard FHA, VA, USDA, or conventional first mortgage from a participating lender; the DPA flows through the same closing.
Two things to budget for: most state DPA requires a homebuyer-education course (typically online, 6-8 hours, ~$75) and you usually have to use a lender on the agency's approved list. The agency keeps the list public on its website.
Common questions
Indiana's primary statewide DPA is First Place (Next Home + DPA) from Indiana Housing and Community Development Authority (IHCDA). Up to 6% of loan amount as a second mortgage. Many Indiana cities and counties also run additional DPA layered on top.
No. The First Place (Next Home + DPA) is open to both first-time and repeat buyers, subject to income and home-price limits.
Yes. First Place (Next Home + DPA) works with these loan types: FHA, Conventional. The DPA is layered behind your first mortgage as a separate lien (or grant), and both close together.
Yes. A second-mortgage DPA has a monthly payment, and that payment is included in your debt-to-income ratio when the lender qualifies you.
Deferred and second-mortgage DPAs are generally repaid in full when you sell, refinance, or pay off the first mortgage.