Down payment assistance in Indianapolis and Marion County
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Indianapolis buyers have more routes than anywhere else in Indiana, and which one fits is usually decided by the specific address rather than anything about the buyer.
The address question comes first
Marion County is marked + on IHCDA's limits sheet, meaning it contains targeted census tracts without being targeted throughout. For an Indianapolis buyer that is the most consequential fact on the page, because a targeted address does two things at once:
- Raises income limits from $110,300 / $126,845 to $132,360 / $154,420, and acquisition from $566,355 to $692,211.
- ★ Waives the first-time homebuyer requirement entirely, which reopens First Step and its 5% to repeat buyers.
Given how much of Indianapolis sits inside qualifying tracts, this is worth checking before assuming you are out. The appraiser must note the qualifying tract on the appraisal, so tell them early. How targeted status works.
Marion County limits
| Base | Targeted tract | Conventional | |
|---|---|---|---|
| Income, 1–2 person | $110,300 | $132,360 | $154,420 |
| Income, 3+ person | $126,845 | $154,420 | |
| Acquisition | $566,355 | $692,211 | None |
Marion shares its figures with the surrounding metro counties — Hamilton, Boone, Hendricks and Johnson all sit at $110,300 / $126,845 base and $154,420 conventional. Hancock matches too and, like Marion, carries targeted tracts. All 92 counties.
The route that catches most people out
The gap between the FHA table and the conventional one is $44,120 here, the widest in the state. A Marion County household earning $120,000 is over the FHA base limit for one to two people and comfortably inside the conventional figure of $154,420.
Add the missing price cap. Against a typical Indianapolis value of $293,506 the $566,355 ceiling is not binding for most buyers, but it starts to matter on newer construction in the collar counties — which is exactly where incomes run highest as well. The conventional route.
Marion is a Hoosier Homes county
Indianapolis buyers have a second operator available. The Fort Wayne Housing Authority's Hoosier Homes programme covers Marion County among its 25, offers up to 5%, and sets its minimum credit score at 640.
That matters for one specific borrower: a score in the 640s is below IHCDA's published 660 floor but inside Hoosier Homes. In Indianapolis that borrower has an option they would not have in, say, Hamilton or Johnson County. Hoosier Homes.
What if you have owned before?
Three routes, in order of how much they pay:
- Buy in a targeted tract and First Step's 5% opens up, because the first-time rule is waived.
- Verifiable military status does the same thing anywhere in the county.
- Next Home has no first-time requirement at all, at 2.50% or 3.50%, and carries no recapture tax.
Comparing the two paying programmes.
Property notes for Marion County
The one parcel, one acre rule is rarely an issue inside Indianapolis proper, where lots are small. It becomes live on the county's edges and in the surrounding townships.
The one parcel half does come up in older Indianapolis neighbourhoods, where a house and its side yard sit on separate parcels that were never recombined. Check the parcel count before you write the offer rather than during underwriting. The property rules.
Condominiums must be warrantable and approved by U.S. Bank, FHA/HUD, Fannie Mae or Freddie Mac, with LTV varying by approval — worth confirming early on a downtown unit.
Frequently asked questions
Can I get down payment assistance in Indianapolis?
Yes. IHCDA programs cover all 92 Indiana counties including Marion. Base income limits in Marion County are $110,300 for one to two people and $126,845 for three or more, with an acquisition limit of $566,355, effective 5/25/2026. The conventional table allows $154,420 with no acquisition limit.Does Marion County have targeted census tracts?
Yes. Marion County is marked as containing targeted census tracts, so the specific property address determines whether the higher limits apply. A targeted address raises income limits to $132,360 and $154,420 and the acquisition limit to $692,211, and waives the first-time homebuyer requirement.What is the income limit for down payment assistance in Indianapolis?
On the FHA table, $110,300 for a one to two person household and $126,845 for three or more, rising to $132,360 and $154,420 in a targeted census tract. On the conventional table the limit is $154,420 regardless of household size, with no acquisition limit at all.Is Hoosier Homes available in Indianapolis?
Yes. Marion County is one of the 25 counties covered by the Fort Wayne Housing Authority's Hoosier Homes program, which offers up to 5% assistance at a 640 minimum credit score. That is below IHCDA's published 660 minimum, so it can suit a buyer whose score sits in the 640s.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.