Saving for a down payment is one of the biggest barriers to homeownership in Indiana — but it doesn’t have to be. Greg Rank at Channelwood Mortgage can connect you with Indiana down payment assistance programs that could contribute thousands of dollars toward your home purchase. Call (317) 603-0912 to find out what you qualify for.

Indiana Down Payment Assistance Programs in 2026

1. IHCDA First Home Program

The Indiana Housing and Community Development Authority's First Home Program provides eligible first-time homebuyers with a down payment assistance grant worth 3.5–6% of the purchase price. This assistance does not need to be repaid after you've lived in the home for 2 years.

• ✅ DPA grant of 3.5%–6% of purchase price
• ✅ Forgivable after 2 years of owner-occupancy
• ✅ Available statewide including Indianapolis, Carmel, Fishers, Noblesville
• ✅ Works with FHA, USDA, and VA loans
• ✅ Income and purchase price limits apply (ask Greg for current limits)
• ✅ First-time homebuyer requirement (no primary home ownership in past 3 years)

2. IHCDA Next Home Program

The Next Home Program offers the same down payment assistance as First Home — but is available to repeat homebuyers too, not just first-timers. If you've owned a home before but it's been more than 3 years, or if you're a repeat buyer who doesn't need first-time buyer status, Next Home may be your best option.

3. IHCDA Affordable Home Program

For income-qualified buyers, this program offers down payment assistance specifically designed for lower-income households. Income limits are lower than the First/Next Home programs, but the assistance can be more substantial for those who qualify.

4. Indianapolis Down Payment Assistance

The City of Indianapolis (through Community Development) offers additional DPA programs for buyers purchasing homes within Indianapolis city limits, particularly in certain neighborhoods and zip codes. These programs can sometimes be stacked with state IHCDA programs for even greater assistance.

5. USDA Zero-Down Program

In eligible rural and suburban Indiana areas, USDA Rural Development loans offer $0 down payment financing with no PMI. This is effectively a built-in down payment assistance program. Many communities near Indianapolis qualify — Greg Rank checks every property's USDA eligibility at no charge.

6. VA Loans — Zero Down for Veterans

Eligible veterans and active-duty military can purchase a home with zero down payment through the VA loan program — arguably the best down payment assistance available anywhere.

Can Down Payment Assistance Be Combined with Other Programs?

Yes, in many cases. For example, an Indiana first-time buyer might combine IHCDA First Home DPA with an FHA loan AND request seller concessions to cover closing costs — potentially purchasing a home with very little out-of-pocket expense. Greg Rank specializes in structuring loans to minimize your upfront costs while maximizing your long-term savings.

DPA Frequently Asked Questions

Do I have to repay down payment assistance in Indiana?
The IHCDA First Home and Next Home programs are forgivable after 2 years of owner-occupancy — meaning if you stay in the home for at least 2 years, the DPA does not need to be repaid.

How much income can I make and still qualify for Indiana DPA?
Income limits vary by county and household size. Hamilton County and Marion County typically have higher limits than rural Indiana counties. Call Greg at (317) 603-0912 for the current limits that apply to you.

How long does it take to close with DPA?
DPA programs add minimal time to the process. Greg works with IHCDA-approved wholesale lenders who are experienced with these programs and can close efficiently.

Do I need a first-time buyer class?
IHCDA programs require a HUD-approved homebuyer education course. These are available online and typically take 4–8 hours. Greg can point you to the best options.

Find Out What Down Payment Assistance You Qualify For

Greg Rank will review your income, credit, and target purchase price to identify every down payment assistance program you qualify for — at no cost or obligation.

📞 (317) 603-0912
📧 gregrank@mortgagebrokerindy.com
🏢 Channelwood Mortgage, 1980 E. 116th Street, Suite 110, Carmel, IN 46032

Related Resources

• All Loan Programs
• Current Mortgage Rates in Indiana
• Mortgage Calculator
• First-Time Homebuyer Programs
• Get Pre-Approved / Contact Greg

Want to reduce your down payment as much as possible? Compare Indiana's zero-down home loan programs, which can be paired with the assistance options above.