Overview
Indiana's housing market offers opportunities for first-time buyers, with a median home price of approximately $230,000. The Indiana Housing and Community Development Authority (IHCDA) provides the primary state-level assistance through mortgage programs and down payment assistance for qualifying buyers.
The Next Home Program is an indiana housing and community development authority's key offering for first-time buyers, providing up to 3.5% of the purchase price as a forgivable second mortgage. This program is designed to reduce the upfront cost barrier that prevents many qualified buyers from purchasing a home. Buyers must complete a HUD-approved homebuyer education course and work with an approved lender.
State Programs
Next Home Program
Down payment assistanceFirst Place Program
Below-market rate mortgage with DPAFederal Programs Available in Indiana
These nationwide programs can be combined with Indiana state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Indiana
The First Place Program extends additional support through below-market rate first mortgage with up to 6% down payment assistance. Indiana has a flat income tax of 2.95% (2026), one of the lowest in the nation. Property taxes average about 0.83%. Combined with affordable median home prices, Indiana is one of the easiest states for first-time buyers.
Federal programs complement state offerings in Indiana. FHA loans require just 3.5% down with flexible credit requirements. VA loans provide zero-down-payment financing for veterans and active-duty military, particularly relevant near multiple military installations. USDA loans offer zero-down-payment options in eligible rural areas, which cover significant portions of Indiana.
Prospective buyers should compare all available options, as combining state and federal programs can dramatically reduce out-of-pocket costs. Working with a HUD-approved housing counselor can help navigate the application process and identify the best program combination for your situation.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: March 30, 2026.