First-Time Home Buyer Programs in Indiana
Buying your first home in Indiana? The Indiana Housing and Community Development Authority runs the state's flagship program — IHCDA First Place — and it stacks with federal loans and local DPA. Here's the full picture, plus how to qualify.
IHCDA First Place
Below-market first mortgage from IHCDA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Indiana first-time buyers meeting income and purchase-price caps.
How first-time homebuyer programs work in Indiana
"First-time buyer" in Indiana usually means you haven't owned a principal residence in the past three years — a wider net than most people expect. IHCDA programs typically pair a competitive first mortgage with down payment and closing-cost assistance, often as a forgivable second lien or grant, plus an optional Mortgage Credit Certificate (MCC) that converts a portion of mortgage interest into a federal tax credit for the life of the loan.
Eligibility hinges on three inputs: your credit score (typically 620–640 for conventional, 580 for FHA), your household income relative to program caps that vary by county in Indiana, and the purchase price of the home. Completing a HUD-approved homebuyer education course is required before closing on most IHCDA products.
The best part: Indiana first-time buyer programs stack with FHA, VA, USDA, and conventional first mortgages, so an FHA borrower with a 620 score can still access IHCDA DPA. And city or county programs in Indiana often layer on top for even larger totals — see the Grant Finder for your ZIP-specific total.
How to qualify: Indiana first-time buyer steps
- 1
Check your credit for IN program eligibility
Most Indiana first-time buyer programs require a minimum credit score (typically 620–640 for conventional, 580 for FHA). Pull your score for free with a soft inquiry so you know where you stand before applying.
- 2
Confirm Indiana first-time buyer status
IHCDA defines "first-time buyer" as someone who hasn't owned a principal residence in the past three years. Some Indiana targeted areas waive this rule.
- 3
Take a IN approved homebuyer education course
IHCDA requires a HUD-approved homebuyer education course before closing on most first-time programs. Most run 6–8 hours and can be completed online.
- 4
Apply through a IHCDA-approved lender
IHCDA First Place is originated by participating IN lenders, not by the HFA directly. Your loan officer submits the DPA package alongside your main mortgage application.
- 5
Close on your Indiana home
First mortgage funds and DPA come to closing together. Keep documentation of the assistance terms — some Indiana DPA is forgivable after a residency period.
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Start my IN readiness checkIndiana first-time buyer programs: FAQ
What is the flagship first-time buyer program in Indiana?▾
IHCDA First Place is the headline first-time homebuyer product from the Indiana Housing and Community Development Authority (IHCDA). Below-market first mortgage from IHCDA paired with down payment and closing-cost assistance, plus an optional MCC tax credit. Available to qualified Indiana first-time buyers meeting income and purchase-price caps.
What credit score do I need for Indiana first-time buyer programs?▾
Most Indiana first-time buyer programs require a minimum credit score of typically 620–640 for conventional, 580 for FHA. Higher scores unlock better interest rates and more DPA options. If your score is below the floor, use HomeApproach's Credit Readiness tool to see the fastest path to qualifying.
Do Indiana first-time buyer programs work with FHA or VA loans?▾
Yes. IHCDA First Place and most IHCDA products layer on top of FHA, VA, USDA, and conventional first mortgages. Your lender submits the DPA application alongside your first mortgage — no separate credit pull required.
Can I stack Indiana first-time buyer programs with local city or county DPA?▾
In most cases, yes. Indiana buyers regularly combine IHCDA state assistance with city or county DPA and federal loans. Home Approach's Grant Finder waterfalls through all four layers by ZIP to show your specific total.
Do I have to be a Indiana resident to qualify?▾
IHCDA First Place requires the home you're buying to be in Indiana and to become your primary residence. You do not typically need to be a current Indiana resident to apply, but check program-specific residency rules.