IHCDA First Step & Next Home | The 2 Mortgage Guys

IHCDA First Step & Next Home | The 2 Mortgage Guys

Indiana IHCDA down payment assistance — First Step up to 5% and forgivable Next Home for FHA or conventional. Get pre-approved with The 2 Mortgage Guys.

IHCDA Down Payment Assistance

State assistance that lowers cash to close

First Step

How it works

Non-forgivable — full repayment required

Core requirements

How it works

Forgivable after occupancy period

Core requirements

Next Home

Compare at a glance

First Step

Next Home

How to qualify & the process

Property & residency rules

Federal recapture tax

Ready to explore IHCDA assistance?

Indiana Housing and Community Development Authority (IHCDA) offers two state-backed programs — First Step and Next Home — paired with a 30-year fixed conventional or FHA first mortgage to lower your cash to close.

Two paths, one goal

Both IHCDA programs issue assistance as a zero-payment second mortgage — no monthly payment on the aid layer. The difference is how much you receive, who qualifies, and whether the assistance is forgivable or must be repaid.

First-time buyer or targeted area?

First Step may fit — up to 5% assistance, but the DPA must be repaid if you sell or move out.

Owned a home in the last three years?

Next Home opens the door — up to 3.5% on FHA or 3% on conventional, forgivable after the required occupancy period.

Built for individuals buying their very first home — or purchasing in a specifically designated census tract.

Up to 5%

of purchase price for down payment or closing costs

Upon termination of the first mortgage or if the property is no longer your primary residence, the full amount of DPA must be repaid in full. Plan your exit strategy before you close.

Unlike First Step, Next Home DPA is forgivable once you live in the home for the state's minimum required timeframe. Stay put, and the assistance can go away entirely.

A path forward if you have already owned a home in the past three years but still need help gathering upfront cash.

3.5%

on FHA loans

3%

on conventional

Side by side

The tradeoff is straightforward: more assistance with First Step, but you repay it. Next Home offers less upfront but can forgive — and opens to repeat buyers.

Program 01