First-Time Buyer Programs & Grants

Buying your first home often means facing one of the biggest upfront financial hurdles you’ll ever experience. Down payments, closing costs, and prepaid expenses add up fast—and they can delay your path to wealth-building if you don’t have the right tools.

That’s why Indiana offers first-time homebuyer assistance options—some may be structured as grants, forgivable assistance, or repayable second mortgages depending on the program and eligibility. 

When you qualify, these programs are designed to:

• reduce upfront costs
• protect your emergency and long-term savings
• help you enter homeownership sooner
• support your long-term financial stability

This guide breaks down the most widely used programs and how they fit into a responsible wealth-building plan—not as shortcuts, but as tools designed to help eligible homebuyers move forward confidently.

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First-time buyer programs aren’t shortcuts—they’re financial tools created to make responsible homeownership more accessible for eligible buyers.

When used strategically, these programs help you:

• Lower upfront cash requirements so you don’t drain your savings
• Preserve an emergency fund for repairs or unexpected expenses
• Enter homeownership sooner, so your housing payment begins building equity
• Protect long-term financial stability by keeping your budget balanced

These programs exist to remove early barriers, helping you move forward with confidence while keeping your long-term wealth in focus.

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Indiana has offered several first-time homebuyer assistance options—including state-administered programs and other support pathways—that may help eligible buyers with upfront costs or other homeownership expenses depending on current guidelines and availability (Lancia Homes, n.d.).

Here’s what you should know:

• Indiana Housing Programs: Down Payment Resource’s Homeownership Program Index (Q4 2024) reports that Indiana had 26 homeownership assistance programs offered by 12 agencies in its database as of January 8, 2025, and program availability and requirements can change—so it’s important to review current guidelines with a licensed mortgage professional (Down Payment Resource, 2025).
• Purpose of These Programs: They exist to lower upfront costs, help preserve your savings, and make responsible homeownership more accessible for eligible buyers.
• Availability Varies: Income limits, credit requirements, and program rules differ based on the specific offering. Always confirm up-to-date details before making financial decisions.

These programs are meant to support your financial stability—not replace careful budgeting or long-term planning.

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In addition to state and local options, several national loan programs offer low down payment requirements that can help reduce upfront costs when you qualify. These programs are widely used by first-time buyers and may support your path to homeownership when paired with responsible budgeting.

Here’s an overview of commonly used loan types:

• FHA Loans: May allow down payments as low as 3.5% for eligible borrowers, and lender requirements can be more restrictive than baseline program guidelines.
• Conventional Loans (Low Down Payment Options): Some conventional loan programs allow down payments as low as 3% for eligible borrowers. These options often provide competitive terms and may offer reduced mortgage insurance costs at higher credit tiers.
• USDA Loans: Available in eligible rural or suburban areas and typically offer a 0% down payment option when program guidelines are met. Location and income restrictions apply.
• VA Loans: Available to eligible veterans, active-duty service members, and some surviving spouses. VA loans may allow 0% down for eligible borrowers and don’t require monthly mortgage insurance; however, many borrowers pay a one-time VA funding fee (unless exempt) and other closing costs may apply.

These loan programs can reduce the amount of cash needed upfront, helping you protect your savings as you transition into homeownership.

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The right assistance program doesn’t just help you close on a home—it strengthens your financial foundation long after you move in. By reducing upfront costs, these programs allow you to keep more of your savings intact so you can stay prepared and confident as a new homeowner.

Here’s how assistance can support your long-term financial stability:

• Protect Your Savings: You maintain a financial cushion for repairs, emergencies, or future goals.
• Build Equity Sooner: Entering the market earlier allows your monthly payment to begin working as an investment rather than a rent expense.
• Reduce Reliance on High-Interest Credit: With more savings on hand, you’re less likely to borrow at high interest when unexpected costs come up.
• Support Sustainable Budgeting: A lower upfront burden helps you stay aligned with your long-term financial strategy.

National housing data shows that many first-time buyers rely on a combination of savings, assistance, or family support to navigate rising upfront costs (National Association of REALTORS®, 2024). This reflects how essential these tools can be for building a stable path toward homeownership.

Assistance can be a practical tool to help eligible buyers preserve cash reserves and enter homeownership sooner—when it fits the budget and program rules.

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NAR reported first-time buyers made up 24% of buyers, and the median down payment for first-time buyers was 9%—highlighting how difficult upfront costs have become (National Association of REALTORS®, 2024).

These programs exist to remove early financial pressure so you can move forward with a plan that protects your savings and supports long-term wealth.

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You now have a clear understanding of how assistance programs work and how they support your long-term financial stability. The next step is choosing the option that aligns with your budget, goals, and comfort level.

Here’s a simple way to move forward:

1. Review Your Budget and Savings Range. Use your affordability comfort zone to determine how much you want to bring to closing while still preserving a financial cushion.
2. Identify Which Types of Assistance Fit Your Situation. Consider whether tax-credit tools like a Mortgage Credit Certificate (MCC) may support your plan; MCCs are administered by state and local housing finance agencies and have eligibility requirements such as income and purchase-price limits and primary-residence use (National Council of State Housing Agencies, 2025).
3. Ask a Licensed Mortgage Professional to Compare Scenarios. Reviewing multiple options side-by-side helps you understand how assistance impacts your cash-to-close, monthly payment, and long-term savings.
4. Choose the Option That Supports Stability and Growth. The best path is the one that protects your savings today while helping you build equity confidently over time.

When used thoughtfully, assistance becomes a strategic part of your financial plan—not just a way to reduce upfront costs, but a way to start your homeownership journey with strength and security.

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Each step in the Blueprint builds on the one before it. As you continue learning, you’ll gain a clearer understanding of how to protect your savings, strengthen your application, and move confidently toward long-term homeownership.

Continue Learning:
→ Next Topic: 📋 Loan Program Options
→ Return to the First-Time Homebuyer Blueprint

Each guide builds on the last, helping you make informed decisions that support long-term stability and wealth through homeownership.

Continue learning with these other related topics:

🏁 Understanding the Mortgage Process

Learn how lenders review your application and what to expect from pre-approval to closing.

💰 Down Payment Basics

Understand how much you really need—and how grants or assistance can help.

📈 Credit Score & Mortgage Readiness 

Build financial confidence and strengthen your credit profile before you buy.

📊 Budgeting & Affordability 

Create a plan that aligns with your lifestyle and long-term goals.

🏠 First-Time Buyer Programs & Grants (You’re Here)

Find programs that can reduce your upfront costs or make homeownership possible sooner.

📋 Loan Program Options

Compare FHA, Conventional, USDA, and VA loans to find your best fit.

🔑 Closing Costs & What to Expect

Prepare for the final stretch—understand what fees to expect and how to save.

👥 Working With the Right Team

Learn how to choose your lender, agent, and homebuying partners wisely.

📍 Home Search & Neighborhood Selection

Discover how to find homes and communities that fit your goals.

🚚 Moving From Renter to Owner

Transition smoothly from renting to owning your first home.

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Down Payment Resource. (2025, January 21). Q4 2024 Homeownership Program Index report. https://downpaymentresource.com/professional-resource/2025-kicks-off-with-record-number-of-homebuyer-assistance-programs/ 

Lancia Homes. (n.d.). Does Indiana have a first time home buyer program? https://www.lanciahomes.com/content/does-indiana-have-first-time-home-buyer-program 

National Association of REALTORS®. (2024). 2024 Profile of Home Buyers and Sellers. https://www.lirealtor.com/docs/default-source/default-document-library/2024_profile_of_home_buyers_and_sellers_report_final.pdf 

National Council of State Housing Agencies. (2024, February 27). Mortgage Credit Certificate program Q&A. https://www.ncsha.org/resource/mortgage-credit-certificate-program-qa/ 

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