Down Payment Assistance in Indiana: A 2026 Hendricks County Guide

How much down payment assistance can you get in Indiana?

Down payment assistance in Indiana usually covers about 3 to 6 percent of your purchase price, delivered as a second mortgage with no monthly payment through the Indiana Housing and Community Development Authority (IHCDA). Some versions are forgiven after roughly nine years if you stay in the home, and separate grant programs can add even more for income-eligible buyers. The catch is that the exact amounts and rules change, and you have to use an approved lender to tap them.

By René Hauck, REALTOR® | June 18, 2026

One of the most common things I hear from buyers in Plainfield, Avon, and Brownsburg is some version of “I don’t think I have enough saved yet.” A lot of the time, that’s not actually true. They just haven’t heard about the help that’s out there.

Indiana has real programs that put a serious dent in the cash you need up front. Here’s how they work, who they’re for, and how to actually use them in Hendricks County.

What down payment assistance in Indiana actually is

Most down payment assistance in Indiana is not a check someone hands you. It’s a second mortgage with no monthly payment, layered on top of your main loan to cover some or all of your down payment and closing costs.

That structure matters, because what happens to that second mortgage later depends on the program:

• Forgivable assistance disappears over time. If you stay in the home and don’t refinance for the full affordability period, often around nine years, the balance is forgiven and you owe nothing.
• Repayable assistance stays on the books with no monthly payment, then gets paid back when you sell, refinance, or reach the end of the term.

Neither one adds a monthly bill while you live there, which is the part that surprises people. The trade-off is simply whether you keep the help free and clear or pay it back down the road. Your lender will tell you exactly which type a given program uses before you sign anything.

The main Indiana programs in 2026

IHCDA runs the core programs, and they operate in all 92 counties, Hendricks included. The lineup shifts a little year to year, but here’s the current shape of it.

• First Place, First Step, and Helping to Own (H2O) are the workhorse down payment assistance programs. Depending on the program and your loan, they put roughly 3 to 6 percent of the purchase price toward your down payment and closing costs.
• Next Home is the one repeat buyers should know about. It offers a smaller percentage, but unlike most of the others, you do not have to be a first-time buyer to use it. That’s a real opening for move-up buyers in Hendricks County.
• The Mortgage Credit Certificate (MCC) is not down payment help at all. It’s a federal tax credit worth up to 25 percent of your annual mortgage interest, capped at $2,000 a year, that you claim every year you live in the home. It often stacks with the programs above.
• Grant programs through the Federal Home Loan Bank of Indianapolis can add larger fixed amounts, sometimes up to $20,000 or more, for buyers under certain income limits. These open in limited funding rounds, so timing matters.

You don’t have to memorize all of this. The point is that there’s usually more than one lever to pull, and the right combination depends on your income, your loan type, and your timeline. That’s a conversation worth having early, and if you want help thinking it through, reach out and we’ll map out your options together before you start touring homes.

Do you qualify? The basics

Every program has its own fine print, but most IHCDA assistance shares the same core requirements:

• Credit score. Usually a minimum around 640, with some FHA options asking for 660.
• Homebuyer education. Most programs require a HUD-approved homebuyer education course. It’s straightforward and it’s there to protect you.
• An approved lender. You can’t get this assistance just anywhere. It has to run through a lender on IHCDA’s approved list.
• Income and price limits. Both your household income and your purchase price have to fall under county-specific caps. In a higher-priced pocket of Hendricks County, those limits are worth checking carefully before you fall in love with a house.
• First-time status, sometimes. Many programs define a first-time buyer as someone who hasn’t owned a primary residence in the past three years. Next Home is the notable exception that welcomes repeat buyers.

For context on how little you might need even before assistance: FHA loans start at 3.5 percent down, conventional loans at 3 percent, and VA and USDA loans can go to zero. Stack assistance on top of those, and the gap between “someday” and “this year” can close fast. If you’re still deciding whether buying makes sense right now at all, my take on whether to buy or rent in the Indianapolis area is a good place to start.

How this works in Hendricks County

Here’s the order I’d walk a buyer through, because the steps matter as much as the programs.

1. Start with a participating lender, not a house. Assistance only works through an approved lender, and they’ll tell you which programs you actually qualify for. This is also where your pre-approval comes together.
2. Check the current income and price limits for Hendricks County. These change, so use today’s numbers, not last year’s.
3. Finish your homebuyer education course. Knock it out early so it never holds up your closing.
4. Get pre-approved with the assistance built in, then shop. Now you know your real budget, and we can target homes in Plainfield, Avon, Brownsburg, or Danville that fit both your price range and the program rules.

I’ll be honest about one thing: program names, percentages, and income limits genuinely do change, and I’m a REALTOR®, not a lender. So treat the figures here as a starting map, and let your lender confirm the exact current numbers for your situation. What I can do is help you understand the landscape, connect you with lenders who know these programs cold, and find the right home once you know your number. For more on navigating today’s market as a first-time buyer, my guide to buying your first Indianapolis home pairs well with this one.

Not sure where to start with the buying process in Plainfield or the surrounding area? I’ll walk you through it from start to finish, including how to line up the right assistance, with no pressure and no obligation. Reach out here or call or text 317-987-7068.

Want to know what past clients say about working with me? Read my reviews on Google, Zillow, and Realtor.com.

Frequently Asked Questions

Do you have to be a first-time buyer to get down payment assistance in Indiana?

Not always. Several IHCDA programs are first-time buyer only, where first-time means you haven’t owned a primary residence in the past three years. But the Next Home program is open to repeat buyers too, so a move-up buyer in Hendricks County may still qualify. If you’re not sure which bucket you fall into, send me a message and I’ll point you toward a lender who can check.

Do you have to pay back down payment assistance in Indiana?

It depends on the program. Most Indiana down payment assistance comes as a second mortgage with no monthly payment. Some versions are forgiven after a roughly nine-year affordability period if you stay in the home and don’t refinance, while others are repaid when you sell, refinance, or reach the end of the term.

How much down payment assistance can you get in Indiana?

Most IHCDA programs provide roughly 2.5 to 6 percent of the purchase price toward your down payment and closing costs, depending on the program and your loan type. Separate grant programs through the Federal Home Loan Bank of Indianapolis can provide larger fixed amounts for income-eligible buyers. Because the exact percentage and dollar cap change, it’s worth confirming today’s figures with a participating lender.

What credit score do you need for down payment assistance in Indiana?

Most IHCDA programs require a minimum credit score around 640, and some FHA options ask for 660. You’ll also usually need to complete a HUD-approved homebuyer education course and work with an approved lender. Income limits and purchase-price limits apply and vary by county and household size.

Can you use down payment assistance with an FHA loan in Indiana?

Yes. Indiana down payment assistance is designed to pair with common loan types, including FHA, conventional, VA, and USDA loans. Many buyers combine an IHCDA first mortgage, down payment assistance, and a Mortgage Credit Certificate for a layered benefit. A participating lender can tell you which combination works for your loan.