Current down payment assistance guidelines, updated from one source.
One source feeds every down payment assistance page Lendmire publishes; the Kokomo, IN figures below refresh when the program sheets are updated.
Of the purchase price
Up to this share of the price can come from assistance: the largest option reaches closing costs as well as the down payment, while the smaller options cover the 3.5% FHA minimum, in whole or, on the lowest tier, in part.
Covers the FHA down payment, in whole or in part
This covers the 3.5% FHA minimum down payment in whole or, on its lower tier, in part, and is forgiven at closing: no lien on the home, no monthly payment, no interest. It opens on the area income limit or on a qualifying category.
On the forgivable and repayable options
The forgivable and repayable options have no income limit at all — one of the biggest advantages of this program. Only the nothing-to-repay option asks for income at or below 140% of the area median, or a qualifying category.
Credit score to start
The score that opens the nothing-to-repay option; the forgivable options start a step higher and the repayable options higher still. Two-borrower files may use a blended score on the second-lien options.
| 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.
For Kokomo, IN buyers, the first-time home buyer programs come down to three parts: the first lien carries most of the price, the assistance covers the minimum investment, and the shape of the assistance — nothing to repay, forgivable, or repayable — decides what it costs to carry.
For the program overview, see Lendmire’s down payment assistance program, or the statewide guide at Down Payment Assistance in Indiana.
Assistance covers the FHA down payment
The gap the program closes for a Kokomo buyer is the minimum investment: the assistance covers that share of the price, the first lien carries the rest, and the buyer’s own savings stay for the move.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Kokomo, IN cover the same minimum investment and differ in what the buyer owes afterward, and a fourth, the refinance-cost option, serves an existing FHA loan.
Credit floors, mortgage programs, and unit counts
A Kokomo 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
In Kokomo, IN, the question is not whether this is a first home; it is which option fits the credit, the first lien, and the property — and, for the nothing-to-repay option, which qualifying category applies.
The assistance is measured on the price, so the calculator starts there. It then applies the option you choose, your own cash, and an editable benchmark rate to show the loan, the mortgage insurance, and the payment.
Where Kokomo’s first-time and moderate-income buyers shop — and how the assistance fits.
Census estimates give the backdrop for a down payment assistance file: where Kokomo, IN’s renters live, what a median home costs, and what a median household earns.
These are context figures, not underwriting inputs. The higher the median value, the larger the minimum investment in dollars; that is why the assistance is sized as a percentage of the price rather than a fixed sum, and why the larger option matters more in expensive markets.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Kokomo submarkets, distinct property rules.
Where a Kokomo home sits changes which option can attach and what the property review asks; the submarkets below are the map most assistance files are read against.
Small multi-unit homes, owner-occupied
In Kokomo, owner-occupied small multi-unit buildings qualify for assistance when the buyer lives in one of the units, up to four units on a purchase; the unit count decides which option applies. The median owner-occupied home value in Kokomo runs near $137,400 on the latest Census estimate.
Condominiums close to work
In Kokomo, a condominium near the job is the first home many buyers can reach; the program pairs with it as long as the project clears FHA review, and the assistance covers the minimum investment the same way it would on a house. Kokomo itself counts a population near 59K.
Townhomes and attached homes
The townhome rows of Kokomo are where many first purchases happen, and the assistance is designed for exactly that: the minimum investment covered, the closing costs reachable on the larger option. Median gross rent in Kokomo is about $939 a month — the payment many renters already carry.
Manufactured homes on owned land
For Kokomo buyers looking at manufactured housing, the assistance is available on owned land, with single-width homes reaching only the option that accepts them. On a home at Kokomo’s median value, the FHA minimum investment comes to about $4,800 — the figure the assistance is built to cover.
New construction and infill
New construction in Kokomo works with the program; the appraisal and the builder’s timeline set the pace, and the assistance closes with the first lien like any other purchase. About 37% of Kokomo’s households rent — roughly 9,699 renter households, the pool the program exists for.
Older neighborhoods and renovation loans
The older streets of Kokomo are full of homes that need work, and the assistance pairs with a renovation first lien: the assistance is figured on the purchase price, while the loan itself covers price plus repairs. Median household income in Kokomo sits near $55,360 on the latest Census estimate.
These are patterns, not promises: each Kokomo purchase is underwritten on its own appraisal, its own credit, and its own option.
Four ways Kokomo buyers put down payment assistance to work.
The same assistance serves several purposes in Kokomo, IN; four of the most common are below.
Buy a home that needs work with a renovation mortgage
A Kokomo 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.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Kokomo, 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
For a first purchase in Kokomo, the assistance closes the down payment gap; the option is chosen by credit and first lien, and by eligibility category where the nothing-to-repay option is in play, and the rest of the file is an ordinary FHA purchase.
Cover closing costs too on the larger option
When the minimum investment is covered but closing costs and prepaids remain the hurdle, the repayable option in Kokomo, IN reaches both; the balance above the minimum investment goes toward the closing.
Size the assistance on a Kokomo price before requesting a quote.
Run a Kokomo 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.
Kokomo FHA payment with assistance
Starting assumptions reflect Kokomo’s home values; change any field and the loan, the mortgage insurance, and the payment are recalculated.
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 $150,000 price near Kokomo’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.
The right structure for a Kokomo, IN buyer depends on savings, credit, the first lien, and whether the help needs to reach closing costs.
Assistance on an FHA loan, your own down payment, or assistance on a USDA or HUD-184 loan.
Assistance that closes with the first lien: it covers the minimum investment; its shape is chosen by the credit tier and the first lien, with the eligibility category where the nothing-to-repay option is in play, and the second-lien options stay open to repeat buyers with no income limit.
The buyer brings the minimum investment from savings, a retirement withdrawal, or seasoned funds; no second lien, no eligibility category, no homebuyer education requirement, and no assistance to carry. For the first lien itself, see Lendmire’s FHA loan program.
Where the property is USDA-eligible or the buyer qualifies for HUD-184, the forgivable options and the ten-year repayable option carry the Kokomo file; 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 Kokomo, IN file where it reads best.
What to prepare for a Kokomo 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 a Kokomo assistance file before the option is confirmed; each one can move the structure.
Use these checks to keep the Kokomo file clean and fundable.
Settle the option, the first lien, the property’s eligibility, and the category before the appraisal is ordered; a Kokomo file that clears these reads cleanly.
- Know the option: choose by cost to carry first, amount second.
- Confirm the category: settle which category applies before the application is signed.
- Handle small repairs: finish and inspect the work inside the window.
The option decides what you owe afterward
A nothing-to-repay option is released at closing with no lien and no payment; a forgivable second lien costs nothing if the first lien stays current through the forgiveness period; a repayable second lien is a loan with a balloon and its own disclosure. A Kokomo buyer chooses by cost to carry first and by amount second.
The eligibility category for the nothing-to-repay option
The nothing-to-repay option opens on any one of four categories — household income at or below the area limit, a community-service occupation, a first purchase, or a property in an underserved census tract — plus a homebuyer education course; the second-lien options need none of these.
Escrow holdbacks for minor repairs
On the second-lien options the program allows its own repair holdback on a Kokomo home (separate from the FHA repair-escrow first lien the nothing-to-repay option can pair with): minor, non-structural repairs can be escrowed at closing, the repairs must not affect health, safety, or livability, and the work is completed and inspected within a set period after closing.
The mortgage and the county loan limit
The nothing-to-repay option pairs only with FHA first liens, including the repair-escrow and renovation programs; the forgivable and ten-year repayable options pair with FHA, USDA, and HUD-184 (the separate closing-cost option with FHA only), and above the county loan limit only the repayable options carry the assistance.
Blended scores for two-borrower files
A Kokomo, IN couple where one score is strong and the other is not may reach an option through the blended score, which applies only when the primary wage earner also holds the higher score and the file carries an automated approval; there is no manual underwriting on a blended file.
From a Kokomo pre-approval to keys with the assistance in place.
The path from a Kokomo pre-approval to keys with the assistance in place runs through the option first and the paperwork second.
Pick the option
Lendmire reads the Kokomo 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
Lendmire packages the Kokomo file for the first lien first, because the assistance follows its approval; the option’s floor and the first lien’s rules both have to clear.
Clear the property
The property side of a Kokomo, IN file is where the option can change: unit count, project approval, and the loan limit are confirmed before the closing is scheduled.
Close both loans together
The Kokomo closing carries both instruments: the first lien and the assistance, each documented on its own and closed together, with the education certificate in the file where it applies.
A brokerage that pairs the assistance to the loan.
Pairing the right assistance to the right first lien for a Kokomo buyer means knowing which option the credit opens, which the property allows, and what each costs to carry — before the contract is signed.
The option, matched to the buyer
Lendmire reads the options offered in Indiana against a Kokomo 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 Kokomo 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
Assistance programs differ across wholesale lenders in what they offer and where; Lendmire places a Kokomo, IN file where its credit, its first lien, and its property read best, subject to lender program eligibility.
Trusted by first-time buyers & families alike.
Kokomo down payment assistance FAQs
The questions a Kokomo, IN buyer asks before requesting an assistance review, answered plainly.
Do I have to be a first-time homebuyer?
No option requires it. A Kokomo buyer who has owned before qualifies for the second-lien options on credit, mortgage, and property alone, and for the nothing-to-repay option through any of the other categories.
Is there an income limit?
The second-lien options have none; the nothing-to-repay option has an area income limit that a qualifying occupation, a first purchase, or an underserved tract can substitute for.
What first-time home buyer programs are available in Kokomo?
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?
Where the nothing-to-repay option is offered, nothing at all — no lien, no payment, no interest. The forgivable second liens are also free to carry: no payment and no interest, and they disappear once you have made the on-time mortgage payments the program asks for. Only the repayable option comes with a payment.
What credit score do I need?
It depends on the option. The lowest floor belongs to the nothing-to-repay option; the second-lien options start higher, and the mortgage’s own rules apply on top.
Can I use the assistance on a second home or a rental?
Primary residences only. Investment properties and second homes are outside the program.
Can I combine this with another assistance program?
The options do not stack with each other or with local, state, or employer programs; a Kokomo buyer eligible for more than one chooses the one that fits best.
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 rate on the mortgage and on the assistance?
It depends on the first lien, the option, and the file; the rate shown in the calculator is an editable market benchmark, not a quote, and the payment it produces is an illustrative estimate. A scenario review produces the terms.
How does a forgivable second lien work — the small second loan behind the mortgage?
It is recorded as a second lien with no interest and no monthly payment, and it is released after the on-time payment period on the first lien — three years on one option, five on the other — as long as there is no serious delinquency in that window and the home stays the primary residence.
From a pre-approval to keys — with the assistance in place.
A first read of a Kokomo assistance scenario takes a few minutes and commits you to nothing; the option, the category, and the property rules are explained before anything is ordered.
This guide covers Kokomo — for the statewide options, categories, and property rules, see Down Payment Assistance in Indiana, part of Lendmire’s down payment assistance program.
Nearby markets in Indiana: Westfield · Noblesville · Carmel · Anderson · Fishers · Lafayette · West Lafayette · Lawrence
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans