First-Time Home Buyer Programs in Indiana: Down Payment Help Available Now (2026)

WHAT FIRST-TIME HOME BUYER DOWN PAYMENT ASSISTANCE PROGRAMS ARE AVAILABLE IN INDIANA IN 2026?

Indiana offers multiple down payment assistance programs for first-time buyers in Hendricks County and across the state. Through the Indiana Housing and Community Development Authority (IHCDA), eligible buyers can receive 3%–6% of the purchase price as a no-payment second mortgage, forgiven after two to nine years depending on the program. The HomeBoost program from FHLBank Indianapolis offers up to $25,000 for first-generation buyers, with the 2026 funding round opening July 8. All programs require working with an IHCDA-approved or participating lender, and income limits range from roughly $88,200 to $141,000 depending on household size and county.

By Jeanette & Doug, The Hammel Team | July 6, 2026

—

The biggest obstacle most first-time buyers in Brownsburg face isn’t qualifying for the mortgage — it’s pulling together the down payment. On a $350,000 home, even a 3.5% FHA down payment is more than $12,000. Add closing costs, and you’re looking at $20,000 to $25,000 before you’ve turned a single key.

What a lot of buyers don’t realize is that Indiana has programs designed specifically to close that gap. Some of these programs offer forgivable second mortgages with no monthly payment. One of them is a flat grant — no repayment required. And as of this week, one of the largest grant programs in the state is reopening for 2026.

Here’s what’s available, who qualifies, and how to get it.

THE IHCDA PROGRAMS: INDIANA’S CORE DOWN PAYMENT ASSISTANCE

The Indiana Housing and Community Development Authority (IHCDA) runs the state’s primary homebuyer assistance programs. These are available in all 92 Indiana counties — Hendricks County included — and they’re administered through a network of approved lenders, not directly through the state.

There are three main programs to know:

First Place — This is the largest IHCDA program for first-time buyers. It provides up to 6% of the purchase price as a second mortgage with no monthly payment. The balance is completely forgiven after nine years, as long as you stay in the home without selling or refinancing. You’ll need to use it alongside a 30-year FHA loan, and you must be a first-time buyer (or a qualified veteran, or purchasing in a target area). On a $350,000 home, that’s up to $21,000 toward your down payment or closing costs.

Next Home — This one is often overlooked because of its name, but it matters: Next Home is available to repeat buyers, not just first-timers. It offers 3.5% of the purchase price in assistance, works with both FHA and conventional loans, and the balance is forgiven after just two years — one of the fastest forgiveness timelines in any Indiana program. If you’ve owned before but are re-entering the market, this is worth a serious look.

H2O (Helping to Own) — H2O functions more like a grant than a loan. It provides 3.5% of the purchase price with no repayment required, as long as you stay in the home for nine years. There is a federal recapture tax provision: if you sell before nine years and your income has risen significantly since you bought, a portion of the grant may be repaid as a tax at that time. For most buyers, that’s not a meaningful concern — especially if you’re planning to stay. This program also requires FHA financing.

All three programs come with income limits that vary by county and household size. In Hendricks County, you’ll generally fall within a range of $88,200 to $141,000 depending on how many people are in your household. If you’re not sure whether you’re under or over the limit, an IHCDA-approved lender can look this up for your exact situation in about five minutes.

Credit score minimums apply as well — most programs require at least a 640 FICO — and you’ll need to complete a homebuyer education course, which you can usually do online in a few hours.

HOMEBOOST: UP TO $25,000 FOR FIRST-GENERATION BUYERS (OPENS JULY 8)

If neither of your parents ever owned a home in the United States — or if you aged out of foster care — you may qualify for HomeBoost, which is one of the most substantial grants available to Indiana buyers right now.

HomeBoost comes from the Federal Home Loan Bank of Indianapolis, not IHCDA, and it offers up to $25,000 toward your down payment, closing costs, and buyer-broker fees. It’s a grant, not a loan — there’s no repayment requirement. You must be at or below 120% of the area median income and plan to use the home as your primary residence.

Here’s the timing that makes this relevant right now: the 2026 HomeBoost round opens July 8. Funds are limited and awarded on a first-come, first-served basis. If you think you might qualify, this is not the week to wait and see. Reach out to a participating lender before the window opens.

You apply through a FHLBank Indianapolis member institution — your lender handles this on your behalf. You don’t contact FHLBank directly.

THE LAUNCH PROGRAM: UP TO $20,000 FOR BUYERS UNDER 80% AMI

Launch is another FHLBank Indianapolis grant program, this one targeted at buyers with incomes at or below 80% of area median income. It provides up to $20,000 for down payment, closing costs, housing counseling, and buyer-broker fees.

The 2026 Launch round opened in April and may still have funds available depending on demand in your area — your lender can confirm current availability. Like HomeBoost, this one requires working with a participating member institution and funding goes quickly once the round opens.

HOW TO ACTUALLY ACCESS THESE PROGRAMS

None of these programs are something you apply for on your own. Every IHCDA program and both FHLBank grant programs flow through approved lenders who are part of each program’s network.

Here’s the path:

1. Get pre-approved with an IHCDA-approved lender. Not every lender participates in these programs. The IHCDA website maintains a current list, or your agent can point you toward lenders they’ve worked with who handle assistance programs regularly.

2. Confirm your eligibility for each program. Your lender will pull your income, credit, and household size and match you with the programs you qualify for. Some buyers stack a state program with a local grant — more on that below.

3. Complete the required homebuyer education course. This is required for most IHCDA programs. It’s online, typically three to eight hours, and needs to be done before closing.

4. Have your lender reserve the funds. For HomeBoost especially, funding is reserved on a first-come, first-served basis. Your lender submits the reservation on your behalf — usually tied to a purchase contract.

One thing to plan for: because assistance programs add a layer to the loan process, timelines can run slightly longer than a conventional transaction. Budget for 45–60 days from contract to close if you’re using assistance, and make sure your purchase agreement reflects that.

CAN YOU STACK PROGRAMS?

Sometimes, yes. Whether programs can be combined depends on each program’s rules and what your lender can structure. Some buyers have used an IHCDA second mortgage alongside the HomeBoost grant, covering both the down payment and closing costs in a single transaction. Your lender will know what’s stackable based on your loan type and the programs available at the time you’re buying.

Even using just one program can meaningfully change the math. On a $350,000 home, a 6% First Place credit means you’re bringing roughly $12,000 less to the table at closing — money that stays in your savings account or goes toward moving costs and early maintenance.

If you want to understand your full cost picture before you start house shopping, we’ve put together a breakdown of what it actually costs to buy a home in Hendricks County — including closing costs, escrow, and first-year expenses that first-time buyers don’t always see coming. And if you’re still getting your credit ready, we’ve also covered what credit score you actually need and how to get there.

Internal links (add when publishing to your blog):

– “What it actually costs to buy a home in Hendricks County” → https://jhammel013a4a6649.com/2025/12/01/how-much-does-it-really-cost-to-buy-a-home-in-hendricks-county-in-2025/

– “Credit score requirements for buying a home” → https://jhammel013a4a6649.com/2025/12/16/do-you-need-a-perfect-credit-score-to-buy-a-home/

One more thing that’s worth knowing: Indiana doesn’t charge a real estate transfer tax, which means sellers don’t pass that cost on to buyers the way sellers in many other states do. It’s a genuine cost advantage if you’re relocating from out of state and used to budgeting for it.

Your specific situation — household size, income, the price range you’re shopping in, and which programs still have funds available when you’re ready — will determine exactly how much help is on the table. That’s a conversation worth having before you start writing offers, not after.

—

FREQUENTLY ASKED QUESTIONS

Can I use down payment assistance with a conventional loan in Indiana?

It depends on the program. The IHCDA First Place program requires an FHA loan. The Next Home program works with both FHA and conventional loans. The HomeBoost grant from FHLBank Indianapolis is compatible with most loan types, including conventional. Your lender will confirm which loan products pair with the assistance you’re applying for.

What is the income limit for IHCDA down payment programs in Hendricks County?

Income limits for IHCDA programs in Hendricks County range from approximately $88,200 to $141,000 depending on the specific program and household size. These limits are updated periodically, so verify the current figures directly with an IHCDA-approved lender before assuming you qualify or don’t qualify.

Do I have to pay back down payment assistance in Indiana?

It depends on the program. The IHCDA First Place assistance is a second mortgage forgiven after nine years if you stay in the home without selling or refinancing — no monthly payments in the meantime. Next Home is forgiven after two years. The HomeBoost grant has no repayment requirement, though a federal recapture tax may apply if you sell within nine years and your income has risen significantly. Launch functions as a grant with no repayment for buyers who remain in the home.

Can I use Indiana down payment assistance to buy a new construction home in Brownsburg?

Yes. IHCDA programs can be used for new construction purchases as long as the home meets program requirements and the loan is structured correctly. Brownsburg has active new construction inventory, and buyers using assistance programs have purchased new builds here. The key is working with a lender experienced in pairing IHCDA assistance with builder contracts, since builder timelines and loan lock requirements can add complexity.

What’s the difference between the HomeBoost and First Place programs?

First Place is an IHCDA program offering up to 6% of the purchase price — available to any qualifying first-time buyer. HomeBoost is a separate FHLBank Indianapolis grant providing up to $25,000 specifically for first-generation homebuyers, meaning neither parent ever owned a home in the U.S., or you aged out of foster care. HomeBoost has significantly larger dollars but narrower eligibility. Both require working with a participating lender.

—

Indiana’s down payment assistance landscape is genuinely one of the better ones in the Midwest — and most first-time buyers in Brownsburg and Hendricks County don’t realize what’s available to them until they’re already in the process.

If you’re a first-time buyer and you’re not sure what you qualify for, Jeanette and Doug are happy to walk you through it — no obligation. We work with buyers at every stage of the process, from “I’m not sure I can afford this” to “I’m ready to make an offer.” We’ve put together a buyer’s guide to walk first-timers through the whole process, and we can connect you with lenders who know these programs inside and out.

Reach out anytime — we’re always happy to talk it through.

—

About Jeanette & Doug, The Hammel Team

Jeanette & Doug are residential real estate agents with Carpenter Realtors, serving Brownsburg and Hendricks County, Indiana. Together, they help buyers and sellers navigate every step of the process — from pricing a home right to negotiating the deal that gets it sold. Reach out to Jeanette or Doug for straightforward, local market expertise you can trust.