How much house can you afford in Indiana with down payment assistance?

Your real Indiana affordability, the IHCDA First Step Down Payment Assistance match, and a step-by-step plan — in 30 seconds. No email required.

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The short answer: In Indiana, the IHCDA First Step Down Payment Assistance (forgivable second mortgage) provides 5% of your purchase price toward your down payment or closing costs. Paired with the FHA 31%/43% debt-to-income guidelines lenders use, this calculator shows how much house you can afford in Indiana — with that assistance factored in.

Indiana down payment assistance program

IHCDA First Step Down Payment Assistance
Forgivable second mortgage · Indiana
5% of purchase price

The IHCDA First Step Down Payment Assistance is Indiana's flagship statewide down payment assistance, administered by the Indiana Housing and Community Development Authority (IHCDA) as a forgivable second mortgage worth 5% of your purchase price. Current amounts, income limits and credit requirements are set by the agency — confirm them on the official program page. Cities and counties in Indiana often add their own programs on top.

Official Indiana program page →
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Indiana DPA — common questions

What down payment assistance is available in Indiana?

Indiana's main statewide option is the IHCDA First Step Down Payment Assistance — forgivable second mortgage administered by the Indiana Housing and Community Development Authority (IHCDA), providing 5% of your purchase price as a forgivable second mortgage. Many cities and counties in Indiana add their own programs on top, so it is worth checking all three levels.

How much house can I afford in Indiana with assistance?

It depends on your income, debts and credit. The calculator applies the FHA 31%/43% debt-to-income rule to estimate your price, then shows how much of your down-payment gap Indiana assistance could cover. Most buyers pair it with a 3% conventional or 3.5% FHA down payment.

What credit score do I need for Indiana down payment assistance?

Many state programs set a 620 minimum credit score alongside income limits based on area median income. Exact requirements are set by the agency — verify current terms on the official IHCDA First Step Down Payment Assistance page before applying.

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