STATEWIDE PROGRAMS
The Indiana Housing & Community Development Authority (IHCDA) has a number of downpayment assistance programs available for homebuyers including 100% loans to veterans under the Honor Our Vets (HOV) program.



Helping to Own (H2O)

Assistance Available:
This program is a 3.5% of the purchase price grant that does not require repayment. It is available only with FHA fixed rate interest mortgages.

Qualifications:
H2O is available only to first time homebuyers unless you are purchasing in a targeted area. A minimum credit score of 660 is required. There are income and purchase price limits. There is a $100 reservation fee.

Next Home Advantage

Assistance Available:
The IHCDA offers homebuyers 3% of the purchase price or the appraised value, whichever is less for downpayment assistance and help with closing costs. You must be approved for a 30 year fixed rate (rate set by IHCDA) conventional loan to qualify. The loan is forgiven after 2 years.

Qualifications:
You do not have to be a first time homebuyer. A minimum credit score of 640 is required.

Next Home Advantage with Subsidy

Assistance Available:
This program offers 3% of the purchase price or appraised value whichever is less in downpayment assistance. The loan is forgiven after 2 years. In addition there is subsidy money available in the form of $2500 if your qualifying income is no greater than 50% of the area median. You may qualify for a $1500 subsidy if your income is equal to or less than 80% of the area median. The subsidies are grants.

Qualifications:
You do not have to be a first time homebuyer. You must qualify for a 30 year fixed rate (rate sets by IHCDA) conventional mortgage. You must have a minimum credit score of 640. Homebuyers must meet the IHCDA and Freddie Mac income limits. There is no cash back at closing. There is a $100 reservation fee.

Next Home Advantage with MCC

Assistance Available:
3% of the purchase price or appraised value, whichever is less is available. The loan is forgiven after 2 years. The 30 year fixed rate is set by IHCDA. In addition there is subsidy money available in the form of $2500 if your qualifying income is no greater than 50% of the area median. You may qualify for a $1500 subsidy if your income is equal to or less than 80% of the area median. The subsidies are grants.

Qualifications:
You must be a first time homebuyer unless you are purchasing property in a targeted area or are a qualifying veteran. You must meet the income requirements. Purchase price limits apply. You must have a minimum credit score of 640. There is no cash back at closing. Recapture tax applies. There is a $100 reservation fee.

Next Home (NH)

Assistance Available:
There is downpayment assistance available in the form of 3.5% of the purchase price/appraised value for homebuyers obtaining an FHA loan and 3% of the purchase price or appraised value, whichever is less, for homebuyers obtaining a conventional mortgage. There is a 2 year affordability period. The 30 year fixed rate is set by IHCDA.

Qualifications:
You must have a minimum credit score of 660 for FHA and 640 for conventional loans. Income limits apply. There is no cash back at closing. There is a $100 reservation fee.

Lake County
Homebuyer Assistance Program

Assistance Available:
Lake County Community Development Department manages a Homebuyer Assistance Program designed to assist qualifying homebuyers with downpayment and closing costs. The assistance is in the form of a maximum of $5000.

Qualifications:
Qualifying participants income level must not exceed 80% of the area median. The entitlement area consists of Cedar Lake, Griffith, Lake Station, Munster, Schereville, Winfield, Dyer, Highland, Lowell, New Chicago, St. John, Crown Point, Hobart, Merrillville, Schneider, and all unincorporated areas of Lake County. The maximum sale price for an existing home is $159,000. The maximum price for new construction is $242,000.

City of Gary
First Time Home Buyer - Down Payment Assistance Program

Assistance Available:
The City of Gary works through the Homeownership Opportunity Network (HON) to offer residents its First Time Home Buyer - Down Payment Assistance Program. The program consists of 10% of the purchase price or $10,000, whichever is less, in the form of a junior lien for 5 to 15 years.

The assistance must be returned to the city in the event the property is sold or transferred while the affordability period is still in effect or the homebuyers does not provide the requested proof that the property is being used as the primary residence. You are not allowed to temporarily sublet the property.

Qualifications:
Properties located in target areas must be new construction in order for the homebuyer to receive the maximum $10,000 assistance. Applicants with a 70% - 80% area median income can receive $4000. Applicants with a 69% - 60% area median income can receive $5000. Applicants with a 50% - 50% area median income can receive $6000. You must complete the City of Gary Homeownership Opportunity Network Homebuyers Education Workshop and Counseling session.

You must be a first time homebuyer (have not owned a home in the previous 3 years) to qualify. You must contribute a minimum of 1% in personal funds for the purchase of an existing home and a 2% minimum in personal funds toward the purchase of new construction. You must occupy the property as your primary residence. A home inspection made at the homebuyer’s expense is required.

If the property you are purchasing was built prior to 1978, a visual inspection is required. If lead is detected, no downpayment assistance funds will be available until a certified lead abatement contractor has stabilized the property.