Hoosier Homes Guide
What Is the Maximum Debt-to-Income (DTI) Ratio Allowed?
Debt-to-income limits for Hoosier Homes follow the guidelines of your first mortgage program. Contact a participating lender for current requirements.
Debt-to-income limits for Hoosier Homes follow the guidelines of your first mortgage program. Contact a participating lender for current requirements.
Hoosier Homes does not publish a standalone maximum debt-to-income (DTI) ratio. Instead, DTI limits are set by the first mortgage program you are using — FHA, VA, USDA, or conventional.
Because the Hoosier Homes second mortgage carries 0% interest and no monthly payment, it does not add to your monthly debt obligations in the DTI calculation.
Program-specific DTI overlays may apply. Confirm current requirements with a participating Hoosier Homes lender, as guidelines can change.
The key DTI advantage: no monthly payment on the assistance.
No payment is due on the Hoosier Homes second lien. Your DTI calculation uses your first mortgage payment, taxes, insurance, HOA, and other debts — not a separate DPA payment.
Hoosier Homes is a second mortgage, not a grant. For full structure details, see the grant-or-loan guide.
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 |
Illustrative example on $12,000 assistance (assuming equal monthly forgiveness over 84 months): after 3 years (36 months), approximately $5,142.86 would be forgiven and approximately $6,857.14 would remain unforgiven if you sell or refinance at that point. Actual terms follow the program note.
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.