The Indiana route with no purchase price cap
Program and regulatory figures verified October 5, 2026. Details change; confirm your scenario with us.
Two buyers with the same income and the same house can get opposite answers from IHCDA, depending only on which of its two limit tables someone measured them against.
Why does IHCDA publish two different limit tables?
Because the programmes are funded differently, and the funding source sets the rules. IHCDA publishes two current files, both effective 5/25/2026:
- First Step, Step Down and Next Home FHA — income limits and acquisition limits.
- Next Home Conventional, Next Step Conventional and Next Step FHA — income limits only. IHCDA's page labels the acquisition column "Acquisition Limits N/A".
Bond-funded programmes inherit the federal purchase-price and income restrictions attached to mortgage revenue bonds. The conventional products do not sit on bond money, so those federal caps never attach.
How much higher is the conventional income limit?
Enough to change the answer for a large number of Indiana households. Every county's conventional figure lands at that county's targeted-area level, which is why the gap is widest where the FHA base limit is lowest.
| County | FHA table, 1–2 person | Conventional | Difference |
|---|---|---|---|
| Marion (Indianapolis) | $110,300 | $154,420 | $44,120 |
| Hamilton, Boone, Hendricks, Johnson | $110,300 | $154,420 | $44,120 |
| Allen (Fort Wayne) | $95,300 | $133,420 | $38,120 |
| Lake, Porter | $100,900 | $141,260 | $40,360 |
| Monroe (Bloomington) | $109,900 | $153,860 | $43,960 |
| Most other counties | $95,300 | $133,420 | $38,120 |
What does no acquisition limit mean in practice?
That IHCDA stops caring what the house costs. Outside a targeted area, First Step and Next Home FHA cap the acquisition cost at $566,355. On Next Home Conventional there is no IHCDA cap at all.
Other limits still bind. The loan itself cannot exceed the conforming limit, which across every one of Indiana's 92 counties is $832,750 for a one-unit property, and maximum LTV is 95% on Fannie Mae and Freddie Mac. The home must be your principal residence and must still be one parcel of one acre. But the programme's own price ceiling is gone.
In most of Indiana a $566,355 cap is not binding anyway — Indianapolis has a typical home value of $293,506. Where it bites is on a larger or newer home in Hamilton or Boone County, and that is precisely where incomes also run above the FHA table.
What do you give up?
Three things, none of them fatal.
- Assistance is 2.50% or 3.50%, not First Step's 5%. Next Home is the only programme on the conventional table that pays assistance.
- Homebuyer education is required. Credit Smart or HomeView on the conventional products; the STEPS matrix lists it as "Not required" on FHA.
- Conventional credit standards apply — max LTV 95%, Fannie through DU, Freddie through LPA. The IHCDA overlay is unchanged at 660 to 45% DTI and 680 from 45–50%.
Mortgage insurance is the real trade: conventional MI at 95% LTV behaves differently from FHA's annual premium, and which is cheaper depends on your credit score. That is a comparison worth running on your actual file rather than in the abstract.
Who should be asking about this route?
Anyone who has been told they earn too much for Indiana assistance, and anyone told their price is over the limit. In both cases the first question back should be: measured against which table? If the answer is the FHA one, the conversation is not finished.
It also helps repeat buyers, since Next Home has no first-time requirement at all. First Step compared with Next Home · How IHCDA counts income.
Frequently asked questions
Does IHCDA Next Home have a purchase price limit?
Next Home Conventional has none. IHCDA's income and acquisition limits page lists the Next Home Conventional, Next Step Conventional and Next Step FHA income limits with the acquisition column marked N/A. Next Home FHA, First Step and Step Down do carry acquisition limits, which outside a targeted area is $566,355 effective 5/25/2026.How much higher is the IHCDA conventional income limit?
It varies by county and lands at that county's targeted-area level. In Marion County the FHA table allows $110,300 for a one to two person household while the conventional table allows $154,420, a difference of $44,120. In most Indiana counties the comparison is $95,300 against $133,420.Is homebuyer education required for IHCDA loans?
On the conventional products, yes, through Credit Smart or HomeView. The STEPS Lender Matrix dated 6/3/2025 lists homebuyer education as not required on the FHA products. Fort Wayne Housing Authority's Hoosier Homes program separately requires education for first-time buyers.What is the maximum LTV on an IHCDA conventional loan?
95% for Freddie Mac and Fannie Mae, per IHCDA's Homeownership Program Guide dated 02/2026. On FHA the maximum LTV is 96.5% with an allowable family member and 75% with a non-family member.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.