Loan Programs

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The IHCDA First Step Program helps eligible first-time homebuyers using an FHA or Conventional 30-year fixed loan by offering up to 6% in down-payment and closing cost assistance. The assistance is provided as a no-interest, no-payment second mortgage, which is repaid when the home is sold, refinanced, or the first mortgage is paid off.

Homebuyers must meet county income limits, purchase-price limits, and complete an approved homebuyer-education course. The first-time buyer requirement is waived for purchases in Targeted Areas or for eligible veterans. 

Verification Note: Program details are based on the latest available IHCDA First Step FHA and Conventional Program Guides (November 2024). IHCDA notes that program guides may be under review and subject to updates. Always confirm the most current guidelines with a licensed mortgage professional or the IHCDA Homeownership Team. 

The IHCDA Step Down Program provides down-payment assistance as a second mortgage equal to 2.5% of the purchase price for eligible buyers using an FHA or Conventional 30-year fixed loan. The assistance is a no-interest, no-payment second mortgage that becomes due upon sale, refinance, or payoff of the first mortgage. 

Borrowers must meet all IHCDA income limits, purchase-price limits, and underwriting requirements to qualify.

Verification Note: Program details are based on the Step-Down Conventional Program Guide (11/22/24) and the Step-Down FHA Program Guide (11/22/24). IHCDA notes that program guides may be under review and subject to updates—always confirm the most current guidelines with a licensed mortgage professional or the IHCDA Homeownership Team. 

The IHCDA Next Home Program provides down-payment assistance equal to 3.5% of the purchase price for eligible buyers using an FHA or Conventional 30-year fixed loan. Assistance is delivered as a 0% interest, no-monthly-payment second mortgage that becomes due when the home is sold, refinanced, or when the first mortgage is paid off. 

Buyers must meet IHCDA income limits, purchase-price limits, and all standard underwriting requirements to qualify.

Verification Note: Program details are based on the Next Home Conventional Program Guide (3/15/24) and the Next Home FHA Program Guide (May 2024). IHCDA notes that program guides may be under review and subject to updates—always confirm the most current guidelines with a licensed mortgage professional or the IHCDA Homeownership Team. 

The IHCDA Next Step Program allows eligible homeowners with an existing IHCDA first mortgage (and second mortgage, if applicable) to refinance into a new IHCDA loan. The program pays off the current IHCDA first and second mortgage(s) and replaces them with a new fixed-rate mortgage—or a new first and second mortgage—equal to the outstanding balance being refinanced. The new second mortgage, when applicable, is a non-forgivable lien with no monthly payments and becomes due only when the first mortgage is paid off, refinanced outside an eligible IHCDA program, or the home is sold.

Homeowners must meet income limits, property requirements, and all FHA or Conventional underwriting guidelines. The property must remain the borrower’s primary residence, and the new loan(s) cannot exceed the current unpaid principal balance. Only one Next Step refinance is permitted.

Verification Note: Program details are based on the latest available IHCDA Next Step FHA and Conventional Program Guides (February 2024). IHCDA notes that program guides may be under review and subject to updates. Always confirm the most current guidelines with a licensed mortgage professional or the IHCDA Homeownership Team. 

The Mortgage Credit Certificate (MCC) Program allows eligible homebuyers to claim a federal income tax credit on a portion of the mortgage interest they pay each year, reducing their federal tax liability and improving affordability. 

Buyers must meet all IHCDA income limits, purchase-price limits, and occupancy requirements, and the MCC must be issued with an approved first mortgage and remain tied to the property to stay valid.

Verification Note: Program details are based on the latest available IHCDA Mortgage Credit Certificate (MCC) Program Guide (December 16, 2020). IHCDA notes that program guides may be under review and subject to updates. Always confirm the most current guidelines with a licensed mortgage professional, a qualified tax professional, or the IHCDA Homeownership Team. 

These programs are offered through the Indiana Housing & Community Development Authority (IHCDA) and participating lenders like Amres Corporation, helping residents turn their homeownership goals into reality. 

New to this? Start with Homeownership 101 to see how programs fit into the journey. 

Several well-known federal loan programs can make homeownership more accessible, especially for buyers who want flexible credit requirements, lower down payments, or location-based benefits. These programs are available statewide and can be paired with certain down-payment assistance options when allowed by program guidelines. 

Offers a low minimum down payment and flexible credit requirements, making it a popular option for buyers who want a more accessible path to financing. 

Provides no-down-payment financing for eligible rural and suburban areas, along with competitive fixed interest rates and income-based eligibility. 

Available to eligible veterans, active-duty service members, and qualifying surviving spouses, offering no down payment and no mortgage insurance. 

Conventional loan options designed for low- to moderate-income borrowers, offering reduced mortgage insurance and down-payment flexibility. 

Because local programs are updated throughout the year and often have specific eligibility rules—such as income caps, neighborhood boundaries, or required workshops—it’s helpful to take a guided approach. Anne King’s team reviews these programs regularly and can help you understand which options may align with your location, goals, and financing strategy. 

Verification Note: Verified Nov 2025. Program availability, guidelines, and eligibility rules may change; confirm current details as part of your eligibility check. 

Yes. Many IHCDA programs are designed to pair with FHA or Conventional financing. Final approval depends on meeting both lender guidelines and program requirements. 

The Mortgage Credit Certificate (MCC) provides an annual federal tax credit. It does not lower your monthly mortgage payment directly but may improve qualifying income during underwriting. 

Most statewide and federal programs update annually, though some local programs may adjust sooner based on funding cycles or policy updates. 

Yes, certain programs—such as IHCDA Next Home and some local initiatives—allow repeat buyers who meet income, credit, and occupancy requirements. 

No. FHA, USDA, VA, and many IHCDA programs offer flexible credit requirements. Each program sets its own minimum standards; an eligibility assessment helps identify realistic options. 

In many cases, yes. Programs like IHCDA First Step and Step Down allow assistance to be applied toward down payment, closing costs, or a combination, depending on loan type and guidelines. 

It depends on the program. Some assistance is a repayable second mortgage due at sale, refinance, or payoff; others may offer forgivable options depending on local program rules. 

Not typically. When documentation is complete and guidelines are met, these programs are designed to integrate into standard loan processing without causing delays.