Hoosier Homes Guide
How Much Assistance Can I Get Through Hoosier Homes?
Hoosier Homes provides up to 4% of your first mortgage loan amount — or up to 5% in targeted areas — as a 0% interest forgivable second mortgage.
Hoosier Homes provides up to 4% of your first mortgage loan amount — or up to 5% in targeted areas — as a 0% interest forgivable second mortgage.
The amount of Hoosier Homes assistance you can receive depends on where you are buying. In most participating counties, the program provides up to 4% of your first mortgage loan amount toward down payment and closing costs.
In targeted areas, that figure increases to up to 5% of the loan amount. Targeted areas are specific counties or census tracts designated by the program administrator.
You do not have to take the maximum. Some borrowers choose to use less assistance depending on their down payment needs and how the numbers work with their first mortgage.
The assistance comes as a second mortgage at 0% interest with no monthly payments. It is forgiven over 7 years (84 months) as long as you remain in the home as your primary residence.
Calling Hoosier Homes a grant vs. a loan changes how you plan exits and long-term occupancy.
4% or 5% assistance reduces what you bring to closing — but terms still apply: occupancy, forgiveness timeline, and possible payoff on sale or refinance.
No payment is due on the Hoosier Homes second lien. Your monthly housing cost is your first mortgage, taxes, insurance, and HOA — not a separate DPA payment.
A remaining second-lien balance is due if you exit within 7 years. Ryan and Steve model this payoff before you close so there are no surprises.
If you expect to stay 7+ years, the forgivable structure can mean you never repay the assistance. Shorter timelines require planning for the unforgiven balance.
How principal forgiveness accumulates month by month.
| Time in home | Forgiven (approx.) | Remaining balance (approx.) |
|---|---|---|
| Year 1 (12 months) | ~14.3% | ~85.7% |
| Year 3 (36 months) | ~42.9% | ~57.1% |
| Year 5 (60 months) | ~71.4% | ~28.6% |
| Year 7 (84 months) | 100% | $0 — fully forgiven |
Example on $12,000 assistance: after 3 years, roughly $5,140 could remain unforgiven if you sell or refinance at that point.
Related guides on repayment timing, structure, and early exit.
Program overview — Indiana DPA for primary-residence buyers.
4% vs 5% examples by first mortgage amount.
Payoff rules when you exit early.
DASH reservations and lender origination.
Full guide — eligibility, counties, and cash rules.
Compare Hoosier Homes with other Indiana DPA.
FHA 30-year fixed pairing with Hoosier Homes.
Ryan & Steve will show you exactly how the Hoosier Homes second lien appears on your Loan Estimate and what forgiveness means for your timeline.
Program guidelines, income limits, and Targeted Area maps change. This page is educational — final eligibility is confirmed when your file is underwritten against current Hoosier Homes rules. This website is not directly affiliated with or endorsed by any government agency.