IHCDA acquisition limits, and the route that has none

Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.

By Mike Certo, Cornerstone First Mortgage · NMLS #260555 · Updated October 5, 2026

The price cap stops almost nobody in most of Indiana, the typical Indianapolis home is $293,506. Where it binds, there is a route around it that few buyers are shown.

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What are the limits?

Two figures, set by whether the property is in a targeted area, and effective 5/25/2026.

Against a typical Indianapolis home value of $293,506, a $566,355 ceiling is not a practical constraint for most buyers. It becomes one in the higher-value Indianapolis metro counties, and that is exactly where the conventional table also runs highest. The no-price-cap route.

What counts as acquisition cost?

More than the number on the contract, and this catches people on a fixer-upper. IHCDA defines acquisition cost as "the cost of acquiring a residence from the seller(s) as a completed residential unit," and spells out the additions:

• All amounts paid in cash or in kind by the buyer, or a related party, to the seller or a related party of the seller.
• ★ If the residence is incomplete, the reasonable cost of completing it — whether or not that cost is financed through the programme. Repairs needed to make it habitable, meet local building codes or meet programme requirements are included.
• Settlement and financing costs in excess of amounts which are usual and reasonable, with points paid to buy down the rate given as the example.
• Property taxes, if not prorated between buyer and seller.
• The cost of the land, or its appraised value if it was a gift, where the land was acquired separately.

So a house bought at $540,000 that needs $40,000 of work to be habitable is not a $540,000 acquisition for this test. That is the mechanism most likely to push an Indiana file over a limit the buyer thought they were comfortably under.

The second ceiling: fair market value

On bond products the purchase price cannot exceed fair market value, which in practice means the appraised value. A price above the appraisal is a problem for the programme in its own right, separate from the acquisition limit.

On Next Home the assistance itself is measured against "the percentage of the property purchase price or appraised value, whichever is less" — so a low appraisal reduces the assistance as well.

What about loan limits?

Separate, federal, and uniform across the state. Every one of Indiana's 92 counties sits at the 2026 conforming baseline of $832,750 for a one-unit property, with no county designated high-cost.

Maximum LTV is 95% on Fannie Mae and Freddie Mac, and 96.5% on FHA with an allowable family member — dropping to 75% where the seller is a non-family member in a transaction that triggers that rule.

Acquisition limits by county

A * county is targeted throughout, so the base column already carries the targeted figure. A + county uses the base figure unless the property sits in a qualifying census tract. Checking your address.

Frequently asked questions

What is the purchase price limit for Indiana down payment assistance?

Effective 5/25/2026, the IHCDA acquisition limit is $566,355 in a non-targeted county and $692,211 in a targeted area, applying to First Step, Step Down and Next Home FHA. Next Home Conventional and Next Step carry no acquisition limit at all.

What is included in IHCDA acquisition cost?

More than the contract price. It includes all amounts paid to the seller or a related party, the reasonable cost of completing an incomplete residence whether or not financed, settlement and financing costs beyond what is usual and reasonable, property taxes if not prorated, and the cost or appraised value of land acquired separately.

Is there a loan limit for IHCDA programs?

The federal conforming limit applies separately from IHCDA's acquisition limit. Every one of Indiana's 92 counties sits at the 2026 baseline of $832,750 for a one-unit property, with no county designated high cost.

Can the purchase price be more than the appraised value?

Not on bond products. IHCDA's executive summary states that the purchase price of the property cannot exceed fair market value for bond loans. On Next Home the assistance is calculated on the purchase price or appraised value, whichever is less.

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Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about financing, not a loan commitment and not legal or tax advice. IHCDA program terms, income limits and acquisition limits are set by the Indiana Housing and Community Development Authority and change; figures here carry the date we verified them against IHCDA's published documents. IHCDA down payment assistance is a non-forgivable second mortgage repayable in full, not a grant. Federal recapture tax may apply on bond-funded loans; consult a tax advisor. Loans are subject to borrower and property qualification.