First-Time Home Buyer Programs in Indiana (2026 Guide)

Buying your first home can feel overwhelming — but the good news is there are several programs in Indiana designed specifically to make it easier.

If you’re a first-time buyer, understanding these options can save you thousands of dollars and help you get into a home sooner than you think.

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What Counts as a First-Time Buyer?

In Indiana, you may qualify as a first-time buyer if:

• You’ve never owned a home
• You haven’t owned a home in the past 3 years
• You’re purchasing in certain targeted areas

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Popular First-Time Buyer Programs in Indiana

1. Indiana Housing & Community Development Authority (IHCDA)

This is the most common program used by first-time buyers.

Benefits may include:

• Down payment assistance
• Competitive interest rates
• Tax credits (MCC program)

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2. FHA Loans

Backed by the federal government, FHA loans allow:

• Lower credit scores
• Down payments as low as 3.5%

Great option for many first-time buyers.

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3. Conventional Loans (Low Down Payment Options)

Some conventional programs allow:

• 3% down
• Reduced mortgage insurance

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How Much Money Do You Actually Need?

Many buyers think they need 20% down.

In reality, many buyers purchase with:

• 3%–5% down
• Assistance programs covering part of that

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What About Closing Costs?

Closing costs in Indiana typically range from:

• 2%–4% of the purchase price

The good news: in many cases, buyers can negotiate for sellers to help cover these costs.

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Thinking About Buying Your First Home?

If you’re not sure where to start, I can help you:

• Understand your options
• Connect you with lenders
• Estimate your monthly payment
• Build a step-by-step plan