Buyer Guides
First-Time Homebuyer Programs Available in Indiana
Indiana first-time buyers can combine IHCDA down payment assistance programs with FHA, conventional, VA or USDA financing, and many Hendricks County buyers close with 0%–3.5% down. Program funds and rates change frequently, so confirm current availability with an approved lender before you shop.
By Zach Archer, Independent Broker · · 8 min read
IHCDA down payment assistance
The Indiana Housing and Community Development Authority (IHCDA) offers assistance programs through participating lenders that can cover part of your down payment and closing costs, often paired with a fixed-rate first mortgage.
Availability, income limits and purchase price caps change by program round and by county. I keep a short list of lenders who actively originate these loans in Hendricks County and can introduce you directly.
Loan programs worth comparing
Most first-time buyers here end up choosing between four options.
- FHA: 3.5% down, more flexible credit standards, mortgage insurance for the life of most loans
- Conventional 97: 3% down for qualifying first-time buyers, PMI removable at ~20% equity
- VA: 0% down and no PMI for eligible service members and veterans
- USDA: 0% down in eligible rural areas — much of western Hendricks County, including Coatesville and parts of Danville
What to do first
Get a full pre-approval, not a pre-qualification. In the Indianapolis suburbs, sellers rarely consider offers without verified income and asset documentation, and a strong pre-approval letter is often what separates competing offers.