Indiana down payment assistance, with the current lender-matrix rules—not old percentages.
IHCDA First Step, Next Home, rate-reduction options, local programs and national DPA—with minimum FICO and repayment rules explained.
Reviewed September 11, 2026 • Joshua Dobson, NMLS #190260
Quick comparison
| Program | Potential assistance | Published min. FICO | Repayment/Forgiveness | Biggest catch |
|---|---|---|---|---|
| IHCDA First Step | 3.5% conventional / 4% FHA in current Sept. 2026 matrix | 660 | No forgiveness under current matrix; second remains repayable | The current September 2026 lender matrix shows lower DPA percentages than the older consumer-facing summary page; verify the reserved product before quoting assistance. |
| IHCDA Next Home | 2.5% or 3.5% of purchase price/appraised value, depending current product | 660 | Non-forgivable under current September 2026 matrix | Older Indiana materials described Next Home DPA as forgivable after three years. The current 2026 guide and September lender matrix describe it as non-forgivable. |
| IHCDA Step Down | Interest-rate benefit; no DPA in current matrix | 660 | Not a cash-DPA product | Step Down is not down-payment cash; its value is the mortgage-rate structure. |
| City of Gary Revitalization Down Payment Assistance (GRDPA) | Current City/provider determination | product/provider specific | Current City/provider documents control | The City's current page confirms an active DPA process and mandatory workshop but does not publish one universal FICO or assistance amount in the accessible page text. |
IHCDA First Step
First Step is IHCDA's bond-funded first-time-homebuyer program. The newest participating-lender matrix shows 3.5% DPA for conventional and 4% DPA for FHA, with a 660 minimum FICO and maximum DTI of 45%.
The DPA is a non-forgivable second mortgage. IHCDA's universal guide explains that the second becomes due when the first mortgage terminates or when other repayment triggers occur. First-time-buyer status is generally required, with current exceptions for a qualifying targeted census tract or qualified veteran.
Published minimum FICO: 660
IHCDA Next Home
Next Home is the important Indiana option for both first-time and repeat buyers. The current matrix shows 2.5% or 3.5% DPA, a 660 minimum FICO, 45% maximum DTI and no first-time-buyer requirement.
The current 2026 materials describe the assistance as a non-forgivable second mortgage. That is a major change from older IHCDA training material still searchable online that described a three-year forgiveness period.
Published minimum FICO: 660
IHCDA Step Down
Step Down is included because sometimes a better first-mortgage rate can be more valuable than taking DPA. The September 2026 matrix labels it an interest-rate-only option with a 660 minimum FICO, 45% maximum DTI and the same general first-time-buyer framework as First Step.
Published minimum FICO: 660
Local Indiana programs worth checking
City of Gary Revitalization Down Payment Assistance (GRDPA)
The City of Gary's Community Development Department is currently publishing a 2026 educational workshop schedule and GRDPA application information. The City states that workshop participation is mandatory to receive down payment assistance.
Because the City's accessible current page does not establish one universal FICO or dollar award, Mortgage Navigator does not invent those numbers. Buyers should complete the City's current intake/education process and verify the assistance amount and underwriting terms before relying on it.
Published minimum FICO: product/provider specific
National programs Indiana buyers should also check
National Homebuyers Fund
NHF multi-state assistance should be compared against IHCDA and local Indiana options. Current participating-lender terms control FICO, pricing, assistance and repayment/forgiveness.
Published minimum FICO: product/lender specific
Chenoa Fund
Chenoa Fund provides FHA DPA through approved lender partners. Current matrices control credit, pricing and second-mortgage terms.
Published minimum FICO: product/lender specific
Indiana's biggest DPA lesson
Indiana is a strong example of why Mortgage Navigator prioritizes the newest lender matrix over older consumer summaries. IHCDA's public overview still references First Step at 5%, while the September 2026 participating-lender matrix shows 3.5% conventional and 4% FHA. We display the newer matrix numbers and flag the discrepancy so a buyer verifies the actual reservation before relying on the assistance amount.
Let Josh compare the available programs.
Send the city/ZIP, purchase price, credit range, household income and first-time-buyer status.