Indiana DPA Program
Hoosier Homes
The Hoosier Homes Down Payment Assistance program helps Indiana buyers purchase a home by providing down payment and closing costs — with no monthly payments on the aid layer.
Program structure
How the assistance works
Hoosier Homes provides 4% of your first mortgage loan amount in standard areas, or 5% in designated Targeted Areas (Hoosier Homes Plus). The aid is structured as a second loan — not a grant — with a forgiveness schedule built in.
7-year forgiveness schedule
- Provided as a 7-year, 0% interest second loan with no monthly payments required
- Principal is forgiven monthly over 7 years — 1/84th per month
- Fully forgiven after 7 years if you remain in the home as your primary residence
Early exit — remaining balance due
If you sell or refinance the home within the 7-year window, the remaining unforgiven principal balance must be repaid. We walk through this scenario before you close so you know what a move or refi could cost.
Standard areas
4% of the final first mortgage loan amount toward down payment or closing costs.
Targeted Areas (Plus)
5% assistance — and county income limits are waived in designated Targeted Areas.
Zero monthly on the second
No payment is due on the assistance layer itself during the forgiveness period.
Stay 7 years, owe nothing
Remain in the home as your primary residence for the full term and the second lien can be fully forgiven.
Eligibility
Who qualifies
Hoosier Homes pairs with several government-backed and HFA conventional first mortgages — and opens the door for buyers who don't fit the typical first-time buyer mold.
Supported first mortgages
- FHA 30-year fixed
- VA 30-year fixed
- USDA 30-year fixed
- Fannie Mae HFA Preferred 30-year fixed
- Freddie Mac HFA Advantage 30-year fixed
Credit & debt limits
- Minimum credit score of 620 for all borrowers
- Maximum DTI up to 50% with Automated Underwriting System (AUS) approval
- First-time homebuyer status is not required
- Homebuyer education required for any first-time buyers
Income
- Qualifying income limits apply based on county guidelines
- Income limits are waived in Targeted Areas (Hoosier Homes Plus)
Eligible property types
- 1–2 unit single-family homes
- PUDs, townhouses, and condos
- Eligible manufactured housing
Geography / Property Location
The 4% Hoosier Homes Down Payment Assistance (DPA) program is available in specific participating counties across Indiana. The 5% Hoosier Homes Plus option is determined by specific Targeted Areas within these jurisdictions — not by whole separate counties.
Approved eligible counties
- Adams
- Allen
- Clay
- DeKalb
- Fulton
- Huntington
- Jay
- Kosciusko
- LaGrange
- Lake
- LaPorte
- Marion
- Montgomery
- Noble
- Parke
- Porter
- Pulaski
- Putnam
- Randolph
- Steuben
- Sullivan
- Vermillion
- Vigo
- Wabash
- Wells
- Whitley
How Targeted Area Eligibility Works
For the 5% Hoosier Homes Plus tier, the property must sit in an approved participating county and within a designated Targeted Area — typically a specific census tract or qualified community area, not the entire county.
Jurisdictions / approved counties
The property must first be located in one of the approved participating counties listed above (such as Marion, Lake, Allen, or Vigo).
Targeted Area designation
To qualify for the 5% assistance level, the specific property address must be located within a designated Targeted Area inside that county.
Income limit waiver
Properties located in these Targeted Areas also qualify to have standard program income limits waived.
Note: Targeted Areas are defined down to specific census tract numbers within participating counties and can change. We verify the exact property address against current program maps before you write an offer.
Financial details
Cash rules
Hoosier Homes is designed to minimize out-of-pocket cash at closing — with clear rules on what you can and can't do with the funds.
$0 required borrower contribution
Hoosier Homes does not require you to bring your own funds toward the down payment. The program is built to cover the minimum required investment with the assistance itself.
Payment shock reserves
If payment shock is greater than 100% (for example, current rent is $1,000 and the new payment is $2,100), one month of reserves may be required — verified from your own funds, retirement accounts, or gift funds.
No cash back from assistance
Borrowers cannot receive cash back from assistance funds. However, you may receive a refund for any overpayment of your own earnest money or appraisal costs at closing.
Program guidelines, income limits, and Targeted Area maps change. This page is educational — final eligibility is determined by the program administrator and your underwriter at the time of application.
Mortgage Knowledge Center
Common Hoosier Homes Questions
Deep-dive guides on how Hoosier Homes works, assistance amounts, forgiveness, eligibility, cash-to-close, and program combinations.
What Is the Hoosier Homes Down Payment Assistance Program?
Read guideHow Much Assistance Can I Get Through Hoosier Homes?
Read guideIs the Down Payment Assistance a Grant, or Do I Have to Pay It Back?
Read guideWhat Happens If I Sell or Refinance My Home Within 7 Years?
Read guideWho Administers the Hoosier Homes Program?
Read guideDo I Have to Be a First-Time Homebuyer to Qualify?
Read guideWhat Minimum Credit Score Is Required?
Read guideAre There Income Limits for the Program?
Read guideWhat Is the Maximum Debt-to-Income (DTI) Ratio Allowed?
Read guideDo I Have to Take a Homebuyer Education Course?
Read guideWhere Can I Use the Hoosier Homes Program?
Read guideWhat Property Types Are Eligible for Purchase?
Read guideCan I Use Hoosier Homes for an Investment Property or Second Home?
Read guideHow Do I Know If a Property Qualifies for the 5% Hoosier Homes Plus DPA?
Read guideWhat Main Loan Types Work With Hoosier Homes DPA?
Read guideHow Much Money Do I Need to Bring to Closing Out of My Own Pocket?
Read guideCan I Get Cash Back at Closing?
Read guideCan Non-Occupying Co-Borrowers or Co-Signers Be on the Loan?
Read guideWhat If My Spouse Is Not on the Primary Loan?
Read guideCan I Refinance the First Mortgage Later Without Paying Back the Second Loan?
Read guideReady to explore Hoosier Homes assistance?
Ryan and Steve will screen Hoosier Homes against your county, loan type, and income — then build a plan around the assistance you're actually eligible for.