Saving for a down payment in Brownsburg can feel like the biggest hurdle between you and the keys. If you are juggling rent, childcare, or student loans, it is easy to wonder if homeownership is out of reach. The good news is that Indiana offers several paths to help with down payment and closing costs, and many are designed for everyday buyers. In this guide, you will learn what assistance looks like, where to find programs near Brownsburg, how to qualify, and the steps to apply. Let’s dive in.
What counts as down payment help in Indiana
Down payment assistance, or DPA, comes in a few common forms. The right fit depends on your income, loan type, and how long you plan to stay in the home.
- Grants: One-time funds you do not repay if you meet program rules.
- Forgivable second mortgage: A second loan that is forgiven after you live in the home for a set period.
- Deferred-payment second mortgage: No monthly payment, but the balance is due when you sell, refinance, or pay off the first mortgage.
- Repayable second mortgage: A small second loan with set repayment terms.
- Mortgage Credit Certificate (MCC): A federal tax credit that lowers your federal income tax, which can improve affordability.
- Matched savings and employer or nonprofit programs: Less common, but some match your savings or offer targeted help.
Programs near Brownsburg to explore
Statewide options through IHCDA
The Indiana Housing and Community Development Authority is the primary source for statewide down payment assistance and MCC information. You will find current program descriptions, income and purchase price limits, and lists of participating lenders on the agency site. Start with the IHCDA homeownership pages and lender list to see what you may qualify for. Visit the Indiana Housing and Community Development Authority.
Federal loan features that can pair with DPA
Many buyers use DPA alongside an FHA or conventional first mortgage. Some federal loans provide low or no down payment on their own.
- FHA loans: Low down payment options that often pair with DPA.
- VA loans: 0 percent down for eligible service members, veterans, and some surviving spouses. Learn more at VA home loans.
- USDA Rural Development loans: 0 percent down in eligible areas, usually outside dense urban zones. Check addresses using the USDA property eligibility map.
Compatibility rules can vary by lender and program, so confirm details early.
County and town resources
Hendricks County and the Town of Brownsburg may receive funding that supports homebuyer assistance in certain years. Availability and rules change based on funding cycles. It is smart to ask directly whether any programs are open and how to apply.
- Contact the county via the Hendricks County government site.
- Check the Town of Brownsburg for community development or housing updates.
Nonprofits, counseling, and local lenders
HUD-approved housing counseling agencies provide homebuyer education and one-on-one guidance. Many DPA programs require this education before closing. Use the HUD housing counselor locator to find local providers. Also ask community banks and credit unions whether they offer lender-specific DPA or reduced closing costs for eligible buyers.
Who qualifies and what you need
Eligibility depends on the program, but you will often see these themes:
- First-time buyer rules: Many programs define first-time as no ownership in the past three years. Some offer exceptions for veterans or targeted areas.
- Income limits: Programs typically cap household income, often tied to area median income. Limits vary by household size.
- Purchase price caps: Many programs set a maximum price for eligible properties.
- Primary residence: DPA usually applies only to homes you will live in as your primary residence.
- Homebuyer education: An approved education course is often required before closing.
- Property types: Some programs limit property types, such as single-family or certain condos.
Have basic documentation ready:
- Government-issued photo ID and Social Security numbers for all borrowers
- Recent pay stubs, W-2s, and federal tax returns
- Bank statements and asset documents
- Employment verification
- Signed purchase agreement and property address
- Homebuyer education certificate when required
- Proof for special eligibility, such as veteran status or employer letters
How to apply in Hendricks County: a simple plan
- Clarify your buyer profile. Identify if you are a first-time or repeat buyer, your income range, credit readiness, and target purchase price and location.
- Start at the state level. Review programs and find participating lenders through the IHCDA.
- Connect with a HUD-approved counselor. Use the HUD counselor locator for education and guidance.
- Shop participating lenders. Ask lenders which DPA programs they work with, and compare fees and timelines.
- Complete homebuyer education. Finish early so it does not delay closing.
- Get pre-approved and request DPA screening. Your lender will determine mortgage qualification and start any DPA reservation steps.
- Apply promptly. Some programs have limited funds. Submit paperwork as soon as your purchase contract is in place.
- Review closing documents carefully. Confirm the assistance type, any second lien, forgiveness timeline, and repayment triggers.
Questions to ask your lender
- Which DPA programs do you offer, and are you a participating lender for IHCDA programs?
- Is the assistance a grant, forgivable loan, deferred loan, or repayable loan? What triggers repayment?
- What are the income and purchase price limits, and how are they calculated?
- Can funds cover both down payment and closing costs?
- Is the DPA compatible with FHA, VA, USDA, and conventional loans? Can I also use an MCC?
- Who services any second mortgage, and how is the lien recorded?
- What happens if I refinance or sell before the forgiveness period ends?
Avoid common pitfalls
Legitimate DPA is offered by government agencies, approved nonprofits, or participating lenders. Be cautious of high-fee middlemen or anyone who promises guaranteed grants for upfront payments. For general consumer protection guidance, consult the Consumer Financial Protection Bureau.
Other tips:
- Apply early. Some programs require a reservation before or early in escrow.
- Keep communication tight. Coordinate among your lender, agent, and the program administrator to avoid last-minute issues.
- Know your triggers. Understand events that could require repayment, such as selling or refinancing within a set period.
- Shop lenders. Individual lenders may have stricter credit or debt-ratio requirements than the program minimums.
Timeline tips for Brownsburg buyers
DPA can add a few steps to your mortgage process. Build in time for education, program reservations, and any required approvals. Ask your lender for a realistic timeline at pre-approval and share it with your agent and the seller so everyone understands the path to closing. When inventory is competitive, having your education done and lender lined up can help you move faster when you find the right home.
Ready to explore your options?
If you want guidance on which programs fit your budget and timeline, we are here to help. As a local team that works across Brownsburg and the north-side suburbs, we can connect you with participating lenders, coordinate your home search, and keep your purchase on track from pre-approval to closing. Reach out to The Molife Group to talk through your next step.
FAQs
Can I use down payment assistance with FHA or VA loans in Brownsburg?
- Many DPA programs pair with FHA and conventional loans. VA and USDA loans have more specific rules, but some DPA may be compatible. Confirm with your lender and the program administrator.
Do I have to be a first-time buyer to get help in Indiana?
- Many programs require first-time buyer status, defined as no ownership in the past three years. Some exceptions apply for veterans or targeted programs.
How long does down payment assistance approval take near Brownsburg?
- Timelines vary by program. Some require early reservations and can add processing time. Start the DPA conversation at pre-approval.
Can DPA cover closing costs as well as the down payment?
- Some programs allow funds for closing costs and prepaids in addition to the down payment. Ask your lender and review program rules.
Is down payment assistance considered taxable income?
- Typically grants or forgivable loans used for down payment are not treated as taxable income, but tax treatment can vary. Consult a tax advisor.
