Indiana Down Payment Assistance

Those looking to buy real estate might consider Indiana, one of the best states for low mortgage debt and low housing costs! Potential home buyers might also find further help from local and national programs that exist to offer down payment assistance and grants to qualified applicants.

If you're thinking about purchasing a home in Indiana, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!

Homebuyers Assistance Program

The Homebuyers Assistance Program has been developed by the Lake County Community Economic Development Department. Through this assistance program, as much as $5,000 is offered to eligible applicants to help with the costs of the down payment, closing, and other fees.

The annual household income limits for 2020 are:

  • 1 person household: $36,350
  • 2 person household: $41,500
  • 3 person household: $46,750
  • 4 person household: $51,900
  • 5 person household: $56,100
  • 6 person household: $60,250
  • 7 person household: $64,400
  • 8+ person household: $68,500

The Lake County entitlement area includes Cedar Lake, Dyer, Crown Point, Griffith, Highland, Hobart, Lake Station, Lowell, Merrillville, Munster, New Chicago, Schneider, Schererville, St. John, Whiting, Winfield, and all the unincorporated areas in Lake County.

First Time Home Buyer Down Payment Assistance

The Homeownership Opportunity Network (or HON) offers the First Time Home Buyer Down Payment Assistance program for qualified individuals in specified target areas.

Up to $10,000 (or 10% of the sale prices of the house – whichever is the lesser amount) is offered to help cover a principal reduction, down payment, or closing costs. This is a loan that can be forgiven. Individuals can only receive assistance from this program once, and forgivable loans are offered first-come, first-serve.

In order to qualify, applicants cannot have owned a house in the previous three years, must be first-time homebuyers, and fall within certain income limits. Applicants must also finish homebuyer counseling and the City of Gary HON Homebuyer Education Workshop. (Other education may be acceptable.)

Target areas include Brunswick, Emerson, Horace Mann, Pulaski, Small Farms, Midtown, Aetna, and University Park.

The total annual household income limits as of 2020 are:

1 person household: $35,250
2 person household: $40,250
3 person household: $45,300
4 person household: $50,300
5 person household: $54,350
6 person household: $58,350

NextHome

The NextHome program, offered by the Indiana Housing & Community Development Authority, is available to qualified applicants. The amount of assistance an applicant can receive depends on the type of mortgage they have and the sales price of the house they are buying.

Those with an FHA mortgage can access 4% of the sales price as assistance funds, while those with a conventional mortgage can access 3%. This is a loan with 0% interest and deferred payments. After two years, the loan is forgiven.

There is no purchase price limit for properties utilizing the NextHome program.

In order to be eligible, applicants must have a minimum credit score of 660, a mortgage from a participating lender, and fall within specific income limits. Applicants will also have to attend and complete Framework, a homebuyer education class.

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