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Indiana Housing & Community Development Authority

IHCDA > Becoming a Home Owner  > Homeownership Programs Homeownership Programs


Affordable Home

 Affordable Home offers first time homebuyers the opportunity to receive an FHA loan at a below market interest rate.  Borrowers must bring their own down payment or may use an approved FHA source. 

Details of Affordable Home include: 

  • Loan must be originated through an IHCDA Participating Lender
  • First-time homebuyers, unless purchasing in a Target county
  • FHA loans only
  • Acquisition and Household Income limits apply
  • Minimum credit score of 660
  • 60-day lock
  • Participating Lenders can only charge 1% origination fee plus $1,000 in junk fees, regardless of who pays these fees
  • A rider must be attached to the first mortgage
  • Cannot be combined with the MCC program
  • $100, non-refundable, reservation fee
  • US Bank, Master Servicer
  • There is no DPA associated with Affordable Home, only a below-market interest rate


My Home Conventional

 My Home Conventional offers qualified homebuyers a low, fixed interest rate on a conventional loan.  Your lender can help you determine the best loan for your financial position.  To qualify you must: 

  • Be income-eligible.  Income limits vary based on family size and location.
  • Get approved for the desired loan.  Your lender will consider income, job stability, creditworthiness, and other criteria when assessing your ability to afford a home.
  • Purchase a single-family home
  • Complete IHCDA University courses (first-time homebuyers only.)

Details of My Home Conventional Include: 

  • Conventional loans only
  • This program would be for the buyer that has their own down payment capability as down payment assistance is not available on this particular product.  For down payment assistance options, please see Next Home.
  • Minimum down payment of 3% of purchase price or appraised value, whichever is less.
  • First-time or non first-time Homebuyers
  • Can be combined with IHCDA's Mortgage Credit Certificate (MCC)

Next Home with MCC Combo

IHCDA is pleased to announce our newest program!  If you are attracted to the tax benefit of the MCC program and the down payment assistance of the Next Home program, then this combo program might be the best option for you!  Unlike the Next Home program, you must be a first-time homebuyer to use this combo but otherwise you pair all of the MCC benefits with those of the Next Home program.  For current interest rates, please contact a Participating Lender.

Details of Next Home with MCC combo include: 

  • Must be a first-time homebuyer or have not had ownership in your primary residence in the past three years, unless purchasing in a targeted county
  • Purchase Price limits apply
  • MCC provides a 20-35% tax credit, not to exceed $2,000, of your mortgage interest expense each year the property is your primary residence. 
  • 3 - 4% down payment assistance (DPA) based on loan type 
  • DPA is fully forgiven after 2 years if you remain the primary resident in the home
  • DPA has zero interest with no monthly payments
  • Loan types of FHA or Conventional 
  • Minimum credit score of 660
  • Loan must be originated through an IHCDA Participating Lender

Next Home with MCC Video

Next Home

Next Home offers prospective homeowners who do not qualify as first-time homebuyer’s as well as first-time homebuyer's, down payment assistance of 3% or 4%.  Under Next Home, there are no purchase price limits which allows more Hoosiers to qualify for this great program.  For current interest rates, please contact a Participating Lender. 

Details of Next Home include:

  • Down Payment Assistance (DPA) is 4% for Federal Housing Administration (FHA) loans only
  • Down Payment Assistance (DPA) is 3% for Conventional loans only 
  • Minimum credit score 660
  • No Purchase Price limits
  • Loan must be originated through an IHCDA Participating Lender 
  • DPA is fully forgiven after 2 years
  • DPA has zero interest with no monthly payments

Next Home Video

      Mortgage Credit Certificate

      The Mortgage Credit Certificate (MCC) program offers qualified Hoosiers a Federal Tax Credit. The tax credit amount ranges between 20% and 35% of the interest paid on a mortgage each year, depending on the mortgage loan amount.  The tax credit can be claimed each year, through the life of the mortgage, as long as the home remains the borrowers principal place of residence.  The maximum credit per year is $2,000. 

      The MCC program is for first-time homebuyers only, unless purchasing in a targeted county. For a list of targeted census tracts, please click here.  

      MCC Video (English)
      MCC Video (

      MCC Re-Issuance

      Are you already a MCC certificate holder and want to refinance or have refinanced?  Return the MCC Re-Issuance Affidavit along with items listed on form to continue the benefit of your tax credit.

      Next Steps To Qualifying

      Each program offered by IHCDA is required to be attached to a first mortgage product.  IHCDA does not credit underwrite and it will be the determination of the participating lender on your ability of afford a home through your income, job stability and credit.  For additional information, the Homeownership Department's programs brochure can be downloaded here or visit the frequently asked questions section. 

      Ready to get started?  Please review our Participating Lenders & Program Income Limits section to learn what income limits apply to your area and to find a lender in your county that can help you with your financing needs, simply inform them upon your initial contact which IHCDA program you are interested in.

      For more information, please contact Lee McClendon, IHCDA Homeownership Manager at 317-232-2582 or via email.