Close with less cash out of pocket. The 2 Mortgage Guys layer in-house Luminate Path, Chenoa Fund, Essex NHF, Indiana Housing, Hoosier Homes, and VLIP grants for Fannie Mae / Freddie Mac — so Indiana buyers can get to the closing table without draining savings.
Can afford the payment but not 3.5–5% cash at closing? Down payment assistance fills that gap with grants, soft seconds, or forgivable layers — so you close with less cash out of pocket and keep reserves for the move-in.
First-time buyers
Stable income, thin savings after renting — DPA covers the down payment piece.
Cash left after closing
Use assistance for the down payment; keep your own money for furniture, repairs, or reserves.
FHA or conventional
Pair with FHA, or stay conventional with Fannie/Freddie-friendly grants like VLIP and Indiana Housing.
Before you offer
We run a DPA scenario early so you know cash-to-close before you write an offer.
DPA program options
Start with featured in-house Luminate Path — our go-to recommendation for most buyers. Chenoa Fund and Essex NHF are FHA partner DPA options; Indiana Housing, Hoosier Homes, and VLIP grants support Fannie Mae / Freddie Mac conventional loans. These DPA programs are not stackable — we'll help you choose the one that best fits your file.
Luminate Path is our in-house DPA menu. We match the right first and second mortgage stack to your occupancy plans and cash-to-close needs.
Learn About Luminate PathFannie / FreddieVLIP grants help Indiana buyers stay in conventional financing when Fannie/Freddie is the better long-term fit.
Learn About VLIP GrantFHA-friendly DPAChenoa is a partner DPA source. We match the right Chenoa structure to your FHA scenario before you write an offer.
Learn About Chenoa FundNational DPA · FHAEssex NHF (National Homebuyers Fund) is a partner DPA option paired with FHA. Homebuyer education is required for at least one borrower.
Learn About Essex NHFWe screen IHCDA-style Indiana Housing options against your county, income, and loan type before locking a path.
Learn About First Step & Next HomeIndiana DPA · forgivable secondHoosier Homes fills the cash-to-close gap for Indiana buyers who qualify — with $0 required borrower contribution.
Learn About Hoosier HomesThese are extra state and local down payment assistance options available through Luminate Bank — beyond the featured national and Indiana programs above.
Arizona (AZ)
California (CA)
Colorado (CO)
District of Columbia (DC)
Delaware (DE)
Florida (FL)
Georgia (GA)
Idaho (ID)
Illinois (IL)
Kansas (KS)
Kentucky (KY)
Maryland (MD)
Michigan (MI)
Minnesota (MN)
Missouri (MO)
Mississippi (MS)
New Hampshire (NH)
New Jersey (NJ)
Nevada (NV)
Ohio (OH)
Oklahoma (OK)
Rhode Island (RI)
South Carolina (SC)
Tennessee (TN)
Texas (TX)
Washington (WA)
Wisconsin (WI)
Compare options
See how Luminate Path, Chenoa Fund, Indiana Housing (IHCDA), Hoosier Homes, VLIP, and Essex NHF stack up on assistance amount, credit, income rules, and who each program fits — then open the program page that matches your file.
Hover or focus any underlined feature or abbreviation for a plain-English definition.
| Feature | Luminate Path | Chenoa Fund | Indiana Housing | Hoosier Homes | VLIP Grant | Essex NHF |
|---|---|---|---|---|---|---|
| Assistance amount | 3.5% or up to 5% second | 3.5% or 5% of purchase price | First Step up to 5% · Next Home up to 3.5% FHA / 3% conventional | 4% standard · 5% Targeted Areas | $2,500 credit | 3.5% or 5% of lower of price or appraised value |
| Structure | Forgivable or repayable PATH seconds | Forgivable (DPA Edge) or repayable second | Zero-payment second — First Step repayable · Next Home forgivable | 7-year 0% second — forgiven monthly, no payments on aid | Grant / credit (not a second lien) | Forgivable deferred or 10-year amortizing second |
| Loan pairing | FHA or USDA first mortgage | FHA 203(b) | FHA or conventional 30-year fixed | FHA, VA, USDA, HFA Preferred / HFA Advantage | HomeReady or Home Possible | FHA first mortgage |
| Min. credit score | 640 forgivable · 660 repayable | 600 FICO typical floor | 640 (DTI under 45%) or 680 (DTI up to 50%) | 620 minimum · DTI up to 50% with AUS | Per HomeReady / Home Possible | 600 minimum |
| First-time buyer | Not required | Not required | First Step: FTHB or targeted tract · Next Home: FTHB or repeat | Not required · HBE if first-time | At least one borrower must be FTHB | Not required |
| Income limits | No stated PATH income limit | None on standard products | Yes — region-specific caps | County limits · waived in Targeted Areas | Household ≤ 50% AMI | No income limits |
| Geography | All states except New York | Nationwide | Indiana primary residences | Indiana primary residences | HomeReady / Home Possible markets (through Feb 28, 2027) | Nationwide except NY and WA |
| Best for | In-house FHA/USDA with flexible seconds | Nationwide FHA buyers needing 3.5%–5% | Indiana buyers with state income / price fit | Indiana buyers needing forgivable 4%–5% with $0 contribution | Very low-income buyers staying conventional | Nationwide FHA buyers needing 3.5%–5% with no income cap |
| Payment shock reserves | If shock >100% or rent-free: 2 months reserves (no gift funds; VOR if rent unclear) | If shock >100% or rent-free: 2 months reserves (no gift funds; VOR if rent unclear) | If shock >100% or rent-free: 2 months reserves (no gift funds; VOR if rent unclear) | If shock >100% or rent-free: 2 months reserves (no gift funds; VOR if rent unclear) | Does not apply | If shock >100% or rent-free: 2 months reserves (no gift funds; VOR if rent unclear) |
All programs: require the home be used for primary residence; temporary buydowns are not allowed; co-signers are not allowed; renovation products are not allowed; homebuyer education is required if all borrowers are first time homebuyers. Essex NHF additionally requires homebuyer education for at least one borrower (stricter than the first-time-only rule above).
Guidelines, income limits, and rates change. This comparison is educational — Ryan and Steve underwrite your scenario against current program rules before you write an offer.
Lender overlays
These overlays apply to Luminate Path, Chenoa Fund, IHCDA, and VLIP. Payment-shock reserve rules apply to Path, Chenoa, Indiana Housing, Hoosier Homes, and Essex — not VLIP.
Payment shock reserves — Path, Chenoa, Indiana Housing, Hoosier Homes & Essex
If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,250 — payment shock is 125%: $1,250 ÷ $1,000), or the borrower lives rent-free, 2 months of reserves are required. Gift funds cannot be used to meet the reserve requirement. If rent is not clearly noted on the bank statement, it must be verified with a VOR.
Talk with Ryan and Steve about Luminate Path, Chenoa Fund, Essex NHF, Indiana Housing, Hoosier Homes, and VLIP grants — then get a clear pre-approval that accounts for assistance up front.