Indianapolis Down Payment Programs
Marion County first-time buyers may qualify for up to $15,000+ in down payment assistance through state, federal, and local lender programs. Here is every current program — explained in plain language.
Down payment assistance (DPA) is money — in the form of a grant or forgivable loan — that helps a first-time homebuyer cover the upfront cost of purchasing a home. In Indianapolis and Marion County, several programs exist that can provide $5,000 to $15,000+ toward your down payment, closing costs, or both.
Most people do not know these programs exist until they are already deep in the homebuying process — or worse, after they have already given up. The buyers who access assistance are the ones who prepare early and work with a Realtor who knows the programs.
Who qualifies?
First-time buyers (or those who haven't owned in 3+ years) with steady income and a credit score of 620+
Do you pay it back?
Most programs are forgivable — stay in the home 5 years and the balance is wiped clean
Is it free to apply?
Yes. DPA programs are administered through lenders and housing agencies at no cost to apply
Marion County only?
Most programs cover all of Marion County. Some are Indiana-wide through participating lenders
Current Programs — 2026
These are the verified programs available to Marion County buyers as of May 2026. Funding availability changes — working with a knowledgeable Realtor ensures you act before a funding round closes.
Forgivable Grant
Up to $20,000
At or below 80% AMI
Offered through participating Indiana lenders. Funds must be used for down payment and/or closing costs. Requires completion of a HUD-approved homebuyer education course and a minimum $500 buyer contribution. Funding is released on a first-come, first-served basis — the 2026 round opened April 14.
Best for: First-time buyers at moderate income levels
Forgivable Grant
Up to $15,000+
At or below 120% AMI
Designed specifically for first-generation homebuyers — meaning neither you nor your parents have ever owned a home. Higher income threshold than Launch DPA. Requires HUD-approved homebuyer education. The 2026 round opens July 8.
Best for: First-generation buyers who have never owned a home
Forgivable Grant
Up to $15,000
Designated communities (Marion County eligible)
Available through Old National Bank in eligible census tracts across Marion County. Paired with a HomeReady or Home Manager mortgage. Requires 640+ credit score and standard income documentation.
Best for: Buyers in eligible Marion County census tracts
Second Mortgage / Forgivable
2.5% – 6% of Purchase Price
Varies by program and county
Indiana Housing and Community Development Authority offers First Step and Next Home programs across all 92 Indiana counties including Marion County. Available through a network of IHCDA-approved lenders. Assistance is structured as a second mortgage that may be forgiven over time.
Best for: Buyers who need flexibility across lenders
Loan / Grant
Varies
Income-qualified
Marion County-only program administered by INHP. Must use the INHP mortgage product. Minimum 620 credit score. Provides homebuyer counseling, financial coaching, and down payment assistance for income-eligible buyers in Indianapolis.
Best for: Lower-income Indianapolis buyers needing counseling + assistance
Tanya Day knows every program above — which lenders participate, when funding opens, and how to stack them for maximum benefit. The call is free.
Most programs define first-time buyer as someone who has not owned a primary residence in the past 3 years. Some programs (like HomeBoost) require first-generation status.
Income limits are based on your household size and the Area Median Income (AMI) for Marion County. Most programs target households earning 80%–120% of AMI.
Most DPA programs require a minimum 620–640 credit score. If you are below that, a readiness plan can get you there — often faster than you expect.
Every program requires completion of a HUD-approved homebuyer education course. These are available online for free or low cost and take about 8 hours.
DPA programs flow through specific lenders. Not every bank participates. Tanya knows which lenders are active in Indianapolis and which programs they carry.
Most programs require the buyer to contribute at least $500 of their own funds. This demonstrates commitment and is a standard program requirement.
Income limits vary by program and household size. FHLBank Launch DPA requires household income at or below 80% of Area Median Income (AMI). HomeBoost allows up to 120% AMI. IHCDA and INHP have their own thresholds. For a family of four in Marion County, the 80% AMI threshold is approximately $65,000–$70,000 depending on the current year's HUD data. A free readiness call with Tanya can tell you exactly which programs you qualify for.
Most DPA programs available in Indianapolis are forgivable loans — meaning if you stay in the home for the required period (typically 5 years), the balance is completely forgiven. Some programs require repayment if you sell or refinance before that period ends. The specific terms depend on which program you use.
Most DPA programs require a minimum credit score of 620–640. FHLBank programs typically require 640+. If your score is below that, it does not mean you cannot buy — it means you need a plan to get there first. A free readiness call can help you map that path.
In some cases, yes. This is called 'layering' programs. For example, you may be able to combine an IHCDA loan with a lender-specific grant. However, not all programs allow layering, and it depends on the specific programs and lender. A qualified Realtor who knows the Indianapolis market can help you explore every option.
Most DPA programs cover all of Marion County — including Indianapolis proper and surrounding townships like Lawrence, Speedway, Beech Grove, Decatur, Wayne, Pike, and Warren townships. Some Old National Bank programs are limited to specific census tracts. INHP is Marion County only. FHLBank and IHCDA programs cover the entire county.
From the day you start preparing to the day you close, most first-time buyers in Indianapolis take 3–6 months. If you need to build credit first, add time. Once you are pre-approved with a participating lender, closing typically takes 30–45 days. Getting your paperwork together early — tax returns, pay stubs, bank statements — speeds everything up.
Explore Specific Programs
The free checklist is your first step. After that, Tanya can tell you exactly which programs match your situation — at no cost.
