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.
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
Program 02
IHCDA assistance is not applied for directly through the state. You secure your primary loan through an IHCDA participating lender — Ryan Minick and Steve DeLon at Luminate Bank guide you through the full process.
Selling your home too quickly — often within about 9 years — may trigger a federal recapture tax on your net proceeds. We walk through this scenario before you commit so there are no surprises at resale.
Program guidelines, income limits, and purchase price caps change. This page is educational — final eligibility is confirmed when your file is underwritten against current IHCDA rules.
Ryan and Steve will screen First Step and Next Home against your county, income, and loan type — then build a pre-approval that accounts for state DPA up front.