Every Indiana loan program Mike runs
One branch manager, the full Indiana menu. IHCDA down payment help, FHA, conventional, VA, USDA, jumbo, self-employed, and investor financing. Find the situation that matches yours, then send your scenario. Mike maps the numbers to your county and your credit profile.
The Indiana menu at a glance
Mike does not sell one loan. He fits the first mortgage to your file, then layers assistance where it earns its keep. Here is the shortlist so you can find your situation fast.
| Program | Who it fits | Down payment | Key Indiana detail |
|---|---|---|---|
| IHCDA First Step | First-time buyers who need cash help | Assistance covers it | 5% of price, non-forgivable second, first-time required |
| IHCDA Next Home | First-time or repeat buyers | Assistance covers part | 2.5% or 3.5%, non-forgivable second |
| IHCDA Step Down | Want a lower rate, no cash help | Standard | Rate-only; first-time buyer or target tract |
| FHA | Lower credit, slim savings | 3.5% | 2026 IN floor $541,287 |
| Conventional 97 | Mid-600s and up | 3% | MI cancels at 20% equity |
| VA | Eligible veterans | $0 | No monthly mortgage insurance |
| USDA | Rural and small-town Indiana | $0 | Income capped near $122,800, address-specific |
| Jumbo | Above $832,750 | Varies | All 92 counties share the same baseline |
| Bank-statement / 1099 | Self-employed | Varies | Qualify on deposits, not net tax income |
| DSCR | Investors | Varies | Qualify on the property's rent |
IHCDA down payment assistance: First Step and Next Home
Indiana runs its down payment help through IHCDA, the Indiana Housing and Community Development Authority. First Step gives 5% of the purchase price. Next Home gives 2.5% or 3.5% of price or appraised value, whichever is less. Here is the part Indiana buyers get wrong most often: neither is a grant. Both are non-forgivable second mortgages. You make no monthly payment on the second, but the full amount comes due when you sell, refinance the first mortgage, or the home stops being your primary residence. First Step requires a first-time buyer unless you buy in a HUD-designated target tract or hold qualifying military status. Next Home is the repeat-buyer product, open to first-time buyers as well. IHCDA sets no fixed credit floor of its own, though lenders and the master servicer typically look for around 640. Reservation runs $250 and lender fees are capped at $1,600. The down payment assistance page compares them line by line.
What happened to First Place, H2O, and the MCC?
Older Indiana guides still list programs that no longer exist, and buyers walk in asking for them. First Place, IHCDA's old conventional product, ended December 31, 2023. Helping To Own, the "3.5% that never repays" grant, is not a current IHCDA program either; the current 3.5% option is Next Home, a repayable second. IHCDA also stopped issuing new Mortgage Credit Certificates and keeps only a re-issuance path for existing holders, so do not count on a fresh Indiana MCC. Confirm any of these at IHCDA before you build a plan around them.
FHA loans in Indiana
FHA is the common landing spot when credit sits lower or savings are thin. It allows 3.5% down and forgives past credit bumps more readily than conventional financing does. The 2026 FHA floor in Indiana is $541,287 on a single-family home, and because Indiana is all-baseline, that floor holds in every county, from Marion to Vanderburgh. IHCDA First Step and Next Home can both ride on top of an FHA first mortgage, so the assistance and the low down payment stack.
Conventional 97 and low-down-payment conventional loans
Once your score clears the mid-600s, conventional financing often beats FHA because the private mortgage insurance cancels at 20% equity instead of running the life of the loan. Conventional 97 allows 3% down on a one-unit primary home. In an affordable market like Indiana, where the median sale price sat near $280,000 in May 2026, a 3% down payment on a starter home in Fort Wayne or Evansville is a reachable number for a lot of first buyers. IHCDA assistance can pair with a conventional first mortgage too.
VA loans for Indiana veterans
Eligible veterans, active-duty service members, and surviving spouses can buy with zero down and no monthly mortgage insurance. Indiana carries a sizable veteran population, from the Crane Naval base community in the southwest to Grissom and the Indianapolis-area guard and reserve units. A VA loan sets its own occupancy and entitlement rules, so a veteran using IHCDA assistance should confirm program stacking with Mike first. He handles Certificate of Eligibility questions and entitlement restoration when you use the benefit a second time.
USDA loans in rural Indiana
Step outside the larger urbanized areas and much of Indiana qualifies for a zero-down USDA loan. The Indianapolis metro and its suburbs, Fort Wayne, Evansville, South Bend, and the Lake County cities of Gary and Hammond are excluded, while the farm country and small towns between them are eligible. USDA caps household income near $122,800 for one to four people in most counties as of 2026, and eligibility is tied to the exact address, not the county. Confirm your address at USDA's eligibility tool before you count on it.
Jumbo loans in an all-baseline state
A loan above your county's conforming limit is a jumbo. In Indiana that line is the same everywhere: $832,750 in all 92 counties for 2026, because the state has no high-cost designation. That means the same threshold applies whether you buy in Carmel, Bloomington, or a rural township. Above it, jumbo underwriting wants stronger reserves and cleaner documentation. Mike runs full-doc, alt-doc, and self-employed jumbo paths for the higher-end pockets around Carmel, Fishers, and Zionsville.
Self-employed and bank-statement loans
Tax returns understate what many business owners really earn, because legal deductions shrink the net figure underwriters read. Bank-statement loans fix that by qualifying you on 12 or 24 months of deposits with an expense-factor adjustment. There are also 1099 loans for contractors and agents, and asset-qualifier loans that build income from liquid accounts. These are Non-QM programs, so they sit outside standard agency rules and price on their own terms. Indiana's small-business owners, from Indianapolis trades to Elkhart RV-industry suppliers, use these often.
Investor and DSCR loans
DSCR loans qualify on the rental income a property produces, not your personal tax return. That keeps investors moving without stacking personal debt-to-income limits. Mike runs standard rental and short-term-rental DSCR options, cash-out refinances for pulling equity into the next deal, and portfolio structures for buyers scaling past a few doors. Indianapolis and its ring, plus college-town rental demand in Bloomington and West Lafayette, keep steady cash-flow deals in play.
Bridge financing to buy before you sell
Move-up buyers in tight Indiana markets often need to buy the next house before the current one sells. A bridge structure lets you write a clean, non-contingent offer, which reads far stronger to a seller than one hinging on your sale closing first. Mike underwrites the bridge against your existing equity plus the new purchase, then coordinates the two closings so you are not carrying two mortgages any longer than you must. It is a common play in fast Hamilton County suburbs like Fishers and Noblesville.
Indiana loan program FAQ
What down payment assistance does IHCDA offer in Indiana?
IHCDA runs two down payment programs. First Step gives 5% of the purchase price toward your down payment and costs, and Next Home gives 2.5% or 3.5% of price or appraised value. Both are non-forgivable second mortgages, not grants: you carry no monthly payment on the second, but the full amount is repaid when you sell, refinance, or the home stops being your primary residence. First Step requires a first-time buyer; Next Home is open to repeat buyers too.
What is the 2026 conforming loan limit in Indiana?
$832,750 on a one-unit home in all 92 Indiana counties for 2026. Indiana is an all-baseline state, so there is no high-cost county and the number is the same in Carmel as it is in a rural county. A loan above $832,750 is a jumbo, which carries stricter reserve and documentation requirements. The FHA floor is $541,287 statewide.
Is IHCDA down payment assistance a grant I never repay?
No, and this is the most common Indiana mix-up. Both First Step and Next Home are non-forgivable second mortgages, which means the assistance is repaid in full when you sell the home, refinance the first mortgage, or move out so it stops being your primary residence. There is no forgiveness schedule that erases the balance over time. The older Helping To Own grant is no longer an IHCDA program.
Can self-employed buyers qualify in Indiana without tax returns?
Yes. Bank-statement loans qualify you on 12 or 24 months of deposits with an expense-factor adjustment, not the net figure left after deductions. There are also 1099 loans and asset-qualifier loans that build income from liquid accounts. These are Non-QM programs, so they sit outside standard agency rules and price differently. Mike matches the method to how your income actually shows up.
Which Indiana areas qualify for a zero-down USDA loan?
Most of rural and small-town Indiana outside the larger urbanized areas. The Indianapolis metro and its suburbs, Fort Wayne, Evansville, South Bend, and Lake County around Gary and Hammond are excluded, while much of the countryside between them qualifies. USDA asks for no down payment and caps household income near $122,800 for one to four people as of 2026. Confirm your exact address at USDA's eligibility tool.