Current down payment assistance guidelines, updated from one source.
The current program figures below are refreshed from Lendmire’s down payment assistance standards source at each visit, so the options shown for Indiana are the options in force.
Of the purchase price
The largest option is a repayable second lien that covers your down payment and can reach closing costs and prepaids too; the smaller options cover the 3.5% FHA minimum down payment, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
Nothing to repay, ever: this option pays the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and leaves no lien behind, for buyers within the area income limit or in a qualifying category.
On the forgivable and repayable options
Most of the options carry no income limit, so a higher-earning household qualifies the same as anyone else; only the nothing-to-repay option looks at income, at 140% of the area median, or at a qualifying category.
Credit score to start
This is the lowest score that opens an option here — the nothing-to-repay option; the forgivable second liens start a little higher and the repayable options higher still, so a stronger score opens more choices.
| Option | Assistance | What you repay | Credit · mortgage · units |
|---|---|---|---|
| Grant-style assistance — nothing to repay | 2% or 3.5% of the price | Nothing — released at closing | 620+ · FHA 203(b), FHA repair escrow, FHA Limited 203(k), FHA Standard 203(k) · 1–4 units |
| Forgivable second lien — three-year | 3.5% of the price | Nothing after 36 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Forgivable second lien — five-year | 3.5% of the price | Nothing after 60 on-time mortgage payments | 640+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Repayable second lien — thirty-year amortization, ten-year balloon | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b), FHA Limited 203(k), HUD-184, USDA · 1–2 units |
| Closing-cost repayable second lien | 3.5% or 5% of the price | Second lien, 30-year amortization, balloon in year 10 | 660+ · FHA 203(b) · 1–2 units |
| Refinance-cost second lien (repayable) | 1% to 3.5% of the balance | Second lien, repaid | 660+ · FHA 203(b) · 1–4 units |
Current down payment assistance snapshot · updated September 7, 2026 · six options offered in Indiana · no option requires a first-time buyer · no option combines with another assistance program · owner-occupied primary residences only.
This page describes down payment assistance at the program level. The option for any file comes from the credit tier, the first lien, the property, and the eligibility category; the first lien’s approval, the appraisal, and full underwriting decide the actual terms, subject to lender program eligibility. Nothing here is a quote, a fee, or a commitment to lend; the calculator’s rate is a market benchmark you can edit and its payment an estimate. Lendmire is never the lender and is not affiliated with FHA, USDA, HUD, or the federal government. Lendmire, LLC — NMLS #2371349. Equal Housing Opportunity.
What down payment assistance is — and how the options differ.
The first-time home buyer programs work the same way in Indiana as anywhere in the footprint: a government first lien, an assistance option sized as a percentage of the price, and a set of rules about credit, units, and eligibility that decide which option fits.
For the program overview, see Lendmire’s down payment assistance program; for the first lien, the FHA loan program.
Assistance covers the FHA down payment
An FHA purchase asks for a minimum investment from the buyer; the assistance covers it, measured as a percentage of the lesser of price or value, and the largest option carries a further share for closing costs and prepaids.
Four shapes: grant, forgivable, repayable, refinance
The assistance comes as a grant where it is offered, as a forgivable second lien, or as a repayable second lien, with a refinance-cost version for an existing FHA loan; each pairs with the first lien differently, and the options table on this page shows what is offered in Indiana.
Credit floors, mortgage programs, and unit counts
An Indiana file is placed by three things — the credit tier, the first-lien program, and the property — and the options table on this page shows the floor, the first liens, and the unit limit for every option offered in Indiana.
Eligibility without a first-time-buyer rule
Eligibility is broader than most buyers expect: repeat buyers qualify, income limits apply only to the nothing-to-repay option, and the categories that open it include first responders, educators, medical personnel, civil servants, and military.
Enter a price, choose an option, and add your own cash. The calculator sizes the minimum investment, splits the assistance between the down payment and closing costs, and estimates the FHA payment with mortgage insurance, taxes, insurance, and dues.
Where Indiana’s first-time and moderate-income buyers shop — and how the assistance fits.
The statewide picture for Indiana: how many people live in the tracked markets, what a median home costs, and how many households rent.
Statewide figures provide general market context, not an appraisal or an income calculation. In most markets, the renter households are the pool the program exists for: qualified for a payment close to their rent, short the cash to close; the assistance is the bridge from one to the other.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Indiana’s renters live — market by market.
Lendmire tracks these Indiana markets for down payment assistance; each carries a city guide with its own Census figures, submarkets, and assistance sizer.
Indianapolis
Roughly 159,622 Indianapolis households rent, about 44% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $224,800, median household income near $66,219, population near 886K.
Fort Wayne
In Fort Wayne, about 38% of households rent — near 42,288 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $188,900, median household income near $61,422, population near 269K.
Evansville
Roughly 24,108 Evansville households rent, about 45% of the total, which makes it a metropolitan market where down payment assistance closes a great many first purchases. Census context: median value near $143,100, median household income near $53,387, population near 116K.
Bloomington
In Bloomington, about 65% of households rent — near 22,522 renter households — and the metropolitan market there sees a steady flow of assisted first purchases. Census context: median value near $321,400, median household income near $50,465, population near 80K.
Lafayette
About 53% of Lafayette’s households rent, near 17,191; the metropolitan market there produces the moderate-price purchases the program is built for. Census context: median value near $172,800, median household income near $53,716, population near 71K.
South Bend
About 40% of South Bend’s households rent, near 16,421; the metropolitan market there produces the moderate-price purchases the program is built for. Census context: median value near $140,400, median household income near $55,786, population near 103K.
These are Census patterns, not program terms. The option for any Indiana file comes from the credit tier, the first lien, the property, and the category.
Four ways Indiana buyers put down payment assistance to work.
How Indiana buyers put the program to work depends on the first lien, the property, and what the help needs to cover; these four paths cover most files.
Cover the costs of an FHA refinance
The refinance-cost option in Indiana is for an existing FHA loan, not a streamline, and not a loan that already carries assistance; it is sized on the lesser of balance or value.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Indiana, the forgivable and repayable options pair with a no-down-payment first lien (the separate closing-cost option is FHA only); HUD-184 first liens pair the same way.
Buy a first home with the down payment covered
An Indiana buyer with the income for the payment but not the cash to close uses the assistance to cover the FHA minimum investment, a grant with nothing to repay, and keeps savings for the move.
Buy a home that needs work with a renovation mortgage
An Indiana buyer taking on a fixer pairs a limited renovation first lien or, on the nothing-to-repay option, a standard one with the assistance; the help is figured on the purchase price, and the loan covers price plus repairs.
Size the assistance on an Indiana price before requesting a quote.
Run an Indiana price through the options before you request a quote: the minimum investment, the assistance applied, what is left for closing costs, the mortgage insurance tier, and the estimated payment. Enter income to see the ratios a lender reads.
Indiana FHA payment with assistance
An Indiana scenario to start from — adjust the price, the option, your own cash, the term, and the rate to see the assistance and the payment.
Editable benchmark: 7.28% as of October 1, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not an FHA loan quote.
Illustrative starting assumptions: a $220,000 price near Indiana’s median owner-occupied home value, the strongest assistance option offered in Indiana applied against the FHA minimum investment, a thirty-year term at the current Freddie Mac benchmark, property taxes and insurance estimated for Indiana (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not an FHA loan quote; your rate is set by the lender at lock. FHA mortgage insurance follows HUD’s published schedule for the term, leverage and loan size entered; taxes, insurance and dues are editable estimates; closing costs are not included; a repayable second lien adds its own payment, which is not shown here. Consumer mortgage lending licensed in sixteen states. Lendmire is not affiliated with or acting on behalf of FHA, USDA, HUD, or the federal government.
Same buyer, three very different closings.
Down payment assistance is one of the ways an Indiana buyer covers the minimum investment; each has a different cost after closing.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
The structure for an Indiana buyer who qualifies for the payment but not the cash to close — the help is sized on the price and the option decides what, if anything, is owed afterward.
For an Indiana buyer with the cash in hand, the plain FHA purchase is the cleaner file; the assistance exists for the buyer who does not have it yet. For the first lien itself, see Lendmire’s FHA loan program.
On a USDA or HUD-184 first lien in Indiana the assistance is forgivable or the ten-year repayable kind; the separate closing-cost option is FHA only. For the USDA first lien, see the USDA loan program.
Assistance fits the buyer short of cash to close; the plain purchase fits the buyer with savings; the USDA and HUD-184 pairing fits eligible properties and borrowers — Lendmire places the Indiana file where it reads best.
What to prepare for an Indiana scenario review.
The documents a lender reads first on an assistance file.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the mortgage, the assistance option, the property, and the eligibility category. Nothing here is legal or tax advice.
Local details that can change the loan.
These are the points a lender reads on an Indiana assistance file before the option is confirmed; each one can move the structure.
Use these checks to keep the Indiana file clean and fundable.
A clean Indiana file starts with the option chosen, the first lien matched to the property, and the homebuyer education course completed where it is required.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: remember that the second-lien options need no category and carry no income limit.
- Consider a blended score: check whether the higher earner has the higher score.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Indiana, and the difference is entirely in what happens after closing: nothing, nothing if the first lien stays current, or a second loan that comes due; the options table shows what is offered.
The eligibility category for the nothing-to-repay option
The category is checked at application on the nothing-to-repay option, together with the signed assistance application and the education certificate; no option requires a first-time buyer, and the second-lien options carry no income limit.
Blended scores for two-borrower files
Blending is a qualification tool on the second-lien options and nothing more; an Indiana file that blends still needs each borrower to have a representative score, and manual underwriting is off the table.
Escrow holdbacks for minor repairs
An Indiana home with a small repair list does not have to wait for the work before closing; the escrow holdback carries it, within the program’s cap and timeline, with an inspection when the work is done.
The balloon on the repayable option
The repayable second lien amortizes over thirty years but comes due in the tenth year; it carries interest and a monthly payment, its own loan number, and a balloon disclosure. It is the option that reaches closing costs, and it is a loan.
From an Indiana pre-approval to keys with the assistance in place.
Lendmire runs an Indiana assistance file in a set order: pick the option, match the first lien, clear the property, close with the assistance in place.
Pick the option
Lendmire reads the Indiana scenario against the options offered in Indiana: the credit tier, the first lien, the unit count, the category, and whether the help must reach closing costs.
Get the mortgage approved
The FHA, USDA, or HUD-184 first lien runs through automated underwriting, with the assistance attached as its own loan where a second lien applies; an Indiana buyer’s income, credit, and reserves are read the way the first lien requires.
Clear the property
The appraisal, the condominium approval where one applies, the manufactured-home title, and the county loan limit are settled; small repairs go into an escrow holdback where the option allows it.
Close both loans together
The first lien and the assistance close at the same table — the assistance as a grant released at closing where offered, or as a second lien with its own loan number — and the Indiana buyer receives keys with the minimum investment covered.
A brokerage that pairs the assistance to the loan.
An assistance file rewards preparation, and preparation is what a brokerage built for first-time and moderate-income buyers provides.
The option, matched to the buyer
Lendmire reads the options offered in Indiana against an Indiana buyer’s credit, first lien, property, and category before anything is ordered, and names the fit by cost to carry.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Indiana property — its address, its unit count, its type — so the assistance option that pairs with it is the one that attaches.
The right wholesale program
An Indiana file is matched to the wholesale program whose option fits the buyer, and Lendmire manages the first lien and the assistance together through closing.
Trusted by first-time buyers & families alike.
Indiana down payment assistance FAQs
The questions an Indiana buyer asks before requesting an assistance review, answered plainly.
Do I have to be a first-time homebuyer?
Not for any option. First-time status is one path into the nothing-to-repay option, not a requirement of the program.
Is there an income limit?
Only on the nothing-to-repay option, and only when no other category applies: household income at or below the area-median-income ceiling in the snapshot, measured where the property sits. The forgivable and repayable second-lien options carry no income limit beyond the mortgage’s own rules.
What first-time home buyer programs are available in Indiana?
Four shapes paired with a government mortgage: a nothing-to-repay option released at closing; forgivable second liens with no interest and no payment, released after an on-time payment period; a repayable second lien with a balloon that also reaches closing costs and prepaids; and a refinance-cost option for an existing FHA loan. The options table on this page shows what is offered in Indiana.
Do I have to pay the assistance back?
It depends on the shape an Indiana buyer takes. Two carry nothing to repay: the nothing-to-repay option where it is offered, and the forgivable second liens, released after the on-time payment period. The repayable options are loans, paid back with interest and a balloon.
What credit score do I need?
Lower than most buyers expect: the entry floor for an Indiana buyer sits in the low six hundreds, with the second-lien options a step or two higher. Two-borrower files may qualify on a blended score on the second lien when the higher earner has the higher score.
What is the rate on the mortgage and on the assistance?
A scenario review produces the actual terms; the calculator here shows an estimate at a benchmark rate you can change, with the assistance sized on the price you enter.
Can I buy a duplex or a fourplex with assistance?
Two units on the second-lien options, up to four on the nothing-to-repay option, always with the buyer living in one of them.
Do I need a homebuyer education course?
Required on one option, optional on the rest; schedule it early if the nothing-to-repay option is the plan.
What is the repayable option and when does it make sense?
The repayable second lien covers the minimum investment and closing costs, and it makes sense when the help has to reach closing costs or the first lien is high balance; plan around its balloon and read its disclosures as the loan it is.
What property types are eligible?
Most primary-residence property types, with the condominium’s approval, the manufactured home’s width and title, and the unit count deciding which option attaches.
The down payment is the hurdle. The option clears it.
Start with the price, the first lien you expect, and your credit tier. No credit pull or commitment is required to request an initial scenario review.
This guide covers Indiana — for the program overview and the options, see Lendmire’s down payment assistance program.
All Indiana city guides (28): Anderson · Bloomington · Carmel · Columbus · Elkhart · Evansville · Fishers · Fort Wayne · French Lick · Gary · Goshen · Greenwood · Hammond · Indianapolis · Jeffersonville · Kokomo · La Porte · Lafayette · Lawrence · Michigan City · Mishawaka · Muncie · Nashville · Noblesville · South Bend · Terre Haute · West Lafayette · Westfield
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans