Down-payment help, credit, costs and every step, written plainly by a team that finances homes in-house.
Buying your first home in Indiana is more achievable than most people think. The state runs down-payment assistance through IHCDA that can cover much of your upfront cost, minimum down payments are often 3–3.5% (not 20%), and Indiana's closing costs are among the lowest in the country. Below is the whole picture, programs, credit, real costs, and the exact steps, plus how our in-house lending makes it faster.
The Indiana Housing and Community Development Authority (IHCDA) runs down-payment assistance in all 92 counties. These are the programs first-time buyers use most:
| Program | Assistance | Who qualifies | How it works |
|---|---|---|---|
| IHCDA First Place | Up to 6% of purchase price | First-time buyers (or buyers in targeted areas) | Forgivable 2nd mortgage, forgiven after 9 years, no monthly payment |
| IHCDA Next Home | Up to 3.5% of purchase price | First-time and repeat buyers | Forgiven after just 2 years |
| Launch DPA (FHLBank Indianapolis) | Up to $20,000 | First-time buyers at or below 80% area median income | Grant toward down payment, closing, counseling & buyer-broker fees, limited funds, 2026 round opens in April |
| Mortgage Credit Certificate (MCC) | Up to $2,000/yr federal tax credit | Income-eligible buyers | Annual credit on mortgage interest for the life of the loan |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
Most of these are processed right alongside your mortgage, so they don't slow you down. Because our founder is a former mortgage lender and our lending is in-house, we can quickly tell you which programs you're likely to qualify for and stack the ones that make sense.
You do not need 20% down to buy a home in Indiana. Most first-time buyers put down far less, and assistance programs can cover a big chunk of even that.
| Loan type | Typical minimum down |
|---|---|
| Conventional (first-time) | As low as 3% |
| FHA | 3.5% |
| VA (eligible veterans) | 0% |
| USDA (eligible rural areas) | 0% |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
Stack a program like First Place (up to 6%) or Launch (up to $20,000) on top and your out-of-pocket down payment can shrink dramatically. Putting less than 20% down usually means paying mortgage insurance, but that's often a smart trade to stop renting and start building equity now, we'll run the actual monthly numbers with you.
There's no single magic credit score, and the requirements vary by loan type. FHA loans are famously flexible; conventional and the assistance programs have their own thresholds and income limits.
The honest answer is: don't disqualify yourself before talking to a lender. Our in-house lender Jessica can look at your credit, income and debts and map a realistic path, including what to do over the next few months if you're not quite ready. It costs nothing to find out, and you can reach her 24/7.
Beyond the down payment, here are the upfront costs first-time buyers should plan for. The good news: Indiana's closing costs average around 0.9% of the price, among the lowest in the U.S., and Indiana charges no transfer tax.
| Cost | Typical range | What it is |
|---|---|---|
| Earnest money | ~1–3% of price | Deposit that shows you're serious; applied to your costs at closing |
| Home inspection | ~$300–$500 | Optional but strongly recommended |
| Appraisal | ~$400–$600 | Usually required by your lender |
| Closing costs | ~0.9% of price (Indiana avg) | Loan, title, and related fees, often partly coverable by assistance |
| Down payment | 0–3.5%+ depending on loan | Can be offset by IHCDA/Launch programs |
Figures are general guidance and updated regularly, ask us for today's numbers in your target area.
Many of these can be reduced or covered, sellers sometimes contribute to closing costs, and programs like Launch can help with closing and buyer-broker fees too. We'll build a realistic cash-to-close number for your specific situation.
Once you own, file your homestead deduction promptly, it meaningfully lowers your bill. In Indiana, property tax on a primary residence is capped at 1% of gross assessed value, and 2026 brought bigger deductions plus a new credit.
File the homestead deduction within about 4–6 weeks of closing so it applies for the next cycle. We'll remind you, it's an easy step that's easy to forget.
Buying, selling, investing, or just curious what your home's worth, reach out and one of us, a real person, texts or calls you right back.