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 Terre Haute, IN are the options in force.
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
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
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
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.
Program figures are refreshed from one guideline source and change when it changes. The nothing-to-repay option is not offered in every state; the forgivable and repayable options are second liens; no option combines with another assistance program; all are for owner-occupied primary residences. The rate in the calculator is an editable market benchmark, not a quote, and the payment shown is an illustrative estimate; no fee or lender identity appears on this page. Lendmire is the broker, not 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 Terre Haute, IN 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, or the statewide guide at Down Payment Assistance in Indiana.
Assistance covers the FHA down payment
In Terre Haute, IN, the assistance attaches to the first lien at closing and covers the buyer’s required investment; on the larger option, what remains after the minimum investment goes toward closing costs.
Four shapes: grant, forgivable, repayable, refinance
Nothing to repay, forgiven over time, or repaid with a balloon: the three purchase shapes in Terre Haute, 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
Credit decides which options are open; the first lien decides which options attach; the property’s unit count and type decide which option carries it. The options table shows all three side by side.
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 Terre Haute’s first-time and moderate-income buyers shop — and how the assistance fits.
Census housing and income data describe who buys in Terre Haute, IN and what it costs to get in; a lender reads those figures as context for the first lien, not as underwriting inputs.
Read the figures as backdrop. Value and income rarely move at the same pace; the market figures below show what a Terre Haute home costs and how many households rent, and the calculator shows what that means for the minimum investment.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Terre Haute submarkets, distinct property rules.
The metropolitan market around Terre Haute splits into distinct pockets; a lender underwrites the home in front of it, but the pocket sets the expectations.
Manufactured homes on owned land
Manufactured housing on owned land near Terre Haute is eligible, with the option decided by the home’s width: the nothing-to-repay option accepts single-width homes, while the second-lien options accept double-width only. Median gross rent in Terre Haute is about $922 a month — the payment many renters already carry.
Townhomes and attached homes
In Terre Haute, a townhome in a planned development pairs cleanly with the program; the association’s rules and dues are read alongside the first lien, and the assistance covers the down payment. The median owner-occupied home value in Terre Haute runs near $115,700 on the latest Census estimate.
Small multi-unit homes, owner-occupied
A buyer who lives in one unit of a Terre Haute duplex can use the program on the whole building; the nothing-to-repay option, which reaches four units, makes a house-hacking purchase reachable with the minimum investment covered. Median household income in Terre Haute sits near $43,126 on the latest Census estimate.
Older neighborhoods and renovation loans
Renovation purchases in Terre Haute qualify for the assistance on the price before repairs, which lets a buyer take on a home that needs work without also finding the minimum investment. About 48% of Terre Haute’s households rent — roughly 11,100 renter households, the pool the program exists for.
Condominiums close to work
In Terre Haute, 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. Terre Haute itself counts a population near 58K.
New construction and infill
A newly built Terre Haute home is eligible; the buyer’s own funds requirement is covered by the assistance, and the builder’s closing date is met once the first lien is approved. On a home at Terre Haute’s median value, the FHA minimum investment comes to about $4,000 — the figure the assistance is built to cover.
Read the submarkets as orientation. The file’s figures come from the first lien, the option, and the program’s rules.
Four ways Terre Haute buyers put down payment assistance to work.
How Terre Haute 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
Owners in Terre Haute with an FHA loan and little cash for a refinance use the refinance-cost option, subject to its own credit floor and the combined-leverage limit it carries.
Buy a small multi-unit home and live in one unit
For a Terre Haute buyer choosing a small multi-unit home, the assistance attaches to the first lien on the building, up to the option’s unit limit, with the buyer living in one of the units.
Cover closing costs too on the larger option
A Terre Haute buyer who needs more than the minimum investment uses the repayable option that covers down payment, closing costs, and prepaid items, including costs paid outside closing.
Pair the assistance with a USDA or HUD-184 mortgage
In USDA-eligible areas around Terre Haute, 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.
Size the assistance on a Terre Haute price before requesting a quote.
The calculator does what a loan officer’s first pass does for a Terre Haute file — sizes the minimum investment, applies the option, builds the FHA loan with mortgage insurance, and estimates the payment — using the current program figures and an editable benchmark rate.
Terre Haute FHA payment with assistance
Starting assumptions reflect Terre Haute’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 Terre Haute’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.
Same Terre Haute buyer, three closings: assistance on an FHA loan, the buyer’s own minimum investment, or assistance on a USDA or HUD-184 loan.
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 Terre Haute 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 Terre Haute, IN file where it reads best.
What to prepare for a Terre Haute 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.
Every Terre Haute file is underwritten individually, but the same handful of considerations recur; they are worth settling before the contract is signed.
Use these checks to keep the Terre Haute file clean and fundable.
Before making an offer on a Terre Haute, IN home, confirm the option, the county loan limit, and the property’s unit count and type.
- Know the option: confirm the option is offered in the state.
- Confirm the category: identify the category that opens the nothing-to-repay option.
- Understand the clock: expect no resubordination and no additional liens.
The option decides what you owe afterward
The same minimum investment can be covered three ways on a purchase in Terre Haute, IN, 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 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.
The forgiveness clock on the forgivable options
A forgivable second lien is released after the on-time payment period on the first lien — three years on one option, five on the other — with no interest and no payment in between; a serious delinquency inside the period keeps the lien in place.
No stacking with other assistance
No option may be combined with another down payment assistance program in Terre Haute, IN, and the nothing-to-repay and forgivable options do not combine with a high-balance first lien; one assistance option, one first lien, one closing.
Homebuyer education on the nothing-to-repay option
The nothing-to-repay option requires a HUD-approved homebuyer education or pre-purchase counseling course, online or in person; the buyer pays for it up front and the cost is credited back at closing. The second-lien options do not require it.
From a Terre Haute pre-approval to keys with the assistance in place.
The process for a Terre Haute, IN purchase with assistance is deliberate, because the details around the assistance are what stall closings.
Pick the option
Every Terre Haute file starts with the option and the first lien; the category, the homebuyer education course and the property rules are then settled around them, in that order.
Get the mortgage approved
Lendmire packages the Terre Haute 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 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 Terre Haute 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.
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
A Terre Haute scenario is placed on the right option first — the credit tier, the first lien, and the category — and the rest of the file is then built to fit it, before anything is ordered.
The mortgage, matched to the property
FHA, USDA, or HUD-184 is chosen with the Terre Haute 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
A Terre Haute 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.
Terre Haute down payment assistance FAQs
The questions a Terre Haute, IN buyer asks before requesting an assistance review, answered plainly.
Do I have to be a first-time homebuyer?
No. None of the options requires a first-time buyer. Being a first-time buyer is one of four categories that opens the nothing-to-repay option; the second-lien options have no first-time-buyer rule and no income limit at all.
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 Terre Haute?
Assistance measured as a percentage of the price, in shapes that differ by what you owe afterward: nothing, nothing if the mortgage stays current, or a second loan with a balloon. Credit, the mortgage, the property, and the eligibility category decide which fits.
Do I have to pay the assistance back?
For a Terre Haute buyer, the nothing-to-repay option where offered, otherwise a forgivable second lien; the options table on this page shows what each costs to carry.
What credit score do I need?
Scores in the low six hundreds open the first option, and each step up in score opens more of them. The mortgage program has its own rules too, so the credit score, the mortgage, and the property are read together before the option is named.
Can the assistance cover closing costs too?
The larger repayable option reaches closing costs; the others stop at the down payment. A Terre Haute buyer short on both uses the larger option.
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.
What is the repayable option and when does it make sense?
It is a loan — the repayable options are the only purchase options with a payment — in exchange for covering the most. A Terre Haute buyer chooses it for the closing-cost coverage or the high-balance pairing.
Can I buy a duplex or a fourplex with assistance?
Owner-occupied small multi-unit homes qualify, with the unit count deciding the option; a Terre Haute, IN buyer living in one unit of a fourplex uses the nothing-to-repay option, the one purchase option that reaches four units; the second-lien options stop at two.
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. Let us clear 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 Terre Haute — 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: Bloomington · Nashville · Greenwood · Indianapolis · Lafayette · West Lafayette · Carmel · French Lick
Related programs: FHA Loans · USDA Loans · FHA 203(k) Rehab Loans