FHLBank Indianapolis Program
The Federal Home Loan Bank of Indianapolis offers up to $20,000 in forgivable down payment assistance for eligible first-time buyers in Indiana. The 2026 funding round is open now.
Funding is first-come, first-served. Buyers who are prepared when the round opens are the ones who get funded.
Maximum Grant
$20,000
toward down payment + closing costs
Grant Type
Forgivable
balance forgiven after required occupancy period
Income Limit
80% AMI
Marion County AMI — varies by household size
Credit Score
640+
minimum required by most participating lenders
Buyer Contribution
$500 min.
from your own funds at closing
2026 Funding
Open Now
round opened April 14, 2026 — first-come basis
The Launch DPA is designed for working-class and moderate-income first-time buyers in Indiana who have steady income but cannot easily save a large down payment — especially in a market where home prices have risen significantly faster than wages.
If you are renting in Indianapolis, paying your bills on time, and working steadily — but the down payment has always felt out of reach — this program is worth understanding.
First-time homebuyer (or no ownership in past 3 years)
Household income at or below 80% of Marion County AMI
Minimum 640 credit score
Complete a HUD-approved homebuyer education course
Minimum $500 buyer contribution at closing
Purchase a primary residence (not investment property)
Work with a participating FHLBank member lender
Marion County AMI Income Reference
Approximate 80% AMI thresholds for Marion County (2025–2026). Verify exact limits with your lender.
* Approximate figures only. Confirm current limits with a participating lender.
Launch DPA vs. HomeBoost
If neither you nor your parents have ever owned a home, the HomeBoost program offers up to $15,000+ (vs. $20,000) and has a higher income limit (120% AMI vs. 80%). Ask Tanya which program fits your situation.
Learn about HomeBoost →Complete a HUD-approved homebuyer education course. Available online for free or low cost. Save your completion certificate — every participating lender will ask for it.
Not every bank in Indianapolis offers Launch DPA. You must work with an FHLBank Indianapolis member lender. This is one of the most important steps — the wrong lender means no access to the grant, even if you qualify.
Your lender will review your income, credit, and employment to determine how much home you can purchase. Your DPA reservation happens at this stage.
The 2026 Launch DPA round opened April 14. Funds are limited. Buyers who are pre-approved and ready when the round opens lock in their reservation. Those who wait may find the funding exhausted.
With pre-approval in hand and your DPA reservation in place, you and your Realtor can shop for a home in Marion County knowing your financing is set.
At closing, Launch DPA funds are applied directly to your down payment and/or closing costs. Remain in the home for the required period and the grant is fully forgiven.
The Launch DPA is a down payment assistance program offered by the Federal Home Loan Bank of Indianapolis through its member lenders. It provides forgivable grant funds — up to $20,000 — to eligible first-time homebuyers in Indiana who meet income and eligibility requirements. Funds can be used toward down payment and/or closing costs.
Household income must be at or below 80% of the Area Median Income (AMI) for Marion County. For a household of one, this is roughly $50,000–$55,000; for a household of four, approximately $65,000–$72,000, depending on current HUD data for the year. Exact limits are confirmed through your participating lender.
The 2026 Launch DPA funding round opened April 14, 2026. Funding is distributed on a first-come, first-served basis through participating lenders. Once the annual funding allocation is exhausted, no additional grants are awarded until the next funding cycle.
Only FHLBank member lenders can originate Launch DPA funds. Not every bank or mortgage company in Indianapolis participates. Working with a Realtor who knows the current landscape — Tanya Day knows which local lenders are active participants — ensures you apply through a lender who can actually process the grant.
The Launch DPA is structured as a forgivable second mortgage. If you remain in the home for the required period (typically 5 years without selling, transferring, or refinancing), the balance is completely forgiven. If you move or refinance before that period ends, a prorated portion may need to be repaid.
Yes. The Launch DPA is designed to layer on top of eligible first mortgage products including FHA, VA, USDA, and certain conventional loan programs. Your lender will structure the combination of your primary mortgage and the DPA grant together.
You must: (1) be a first-time homebuyer, (2) have household income at or below 80% AMI, (3) complete a HUD-approved homebuyer education course, (4) contribute a minimum of $500 from your own funds, and (5) work with a participating FHLBank member lender. A minimum credit score of 640 is typically required.
Both are FHLBank Indianapolis programs. Launch DPA offers up to $20,000 for buyers at or below 80% AMI. HomeBoost offers up to $15,000+ but is restricted to first-generation homebuyers (neither you nor your parents have owned a home) at up to 120% AMI, with a funding round that opens July 8, 2026. If you qualify as first-generation, HomeBoost may offer more assistance.
Don't wait until the funds run out. Get the free checklist and book a call with Tanya to confirm your eligibility today.
