Cornerstone First Mortgage · Mike Certo NMLS #260555

Indiana home loans, from IHCDA's First Step and Next Home down payment help to Indianapolis and Fort Wayne.

Indiana-licensed lending from the Indianapolis suburbs to the farm counties. Straight numbers on IHCDA's First Step and Next Home assistance, which are repayable seconds and not the grants many sites still describe, USDA across rural Indiana, and the fact that Indiana charges no state transfer tax. A Cornerstone branch manager who works the file himself instead of handing it to a call center.

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Indiana home-loan facts worth knowing

IHCDA's First Step gives 5% of the price toward your down payment, and Next Home gives 2.5% or 3.5% (IHCDA, verified Aug 2026). Both are second mortgages you repay when you sell or refinance, not grants.
This is the part most websites get wrong: Indiana's down payment help is not forgivable and not a giveaway. The old Helping To Own grant is gone, and the First Place program ended at the end of 2023.
First Step is for first-time buyers; Next Home also serves repeat buyers. Lenders typically look for around a 640 credit score, and the county sets the income and price limits.
Indiana charges no state real estate transfer tax. You pay a small Sales Disclosure Form fee and recording fees, but no percentage-of-price transfer tax, which saves money most states charge.
Indiana is an all-baseline conforming state: every one of the 92 counties uses the 2026 limit of $832,750, with no high-cost exception (FHFA, 2026).

The Indiana programs Mike runs

IHCDA, the Indiana Housing and Community Development Authority, anchors the first-time and assistance side. Around it sit the standard loan types and a few niche paths. Here is the menu.

IHCDA First Step

5% of the purchase price toward your down payment, as a second mortgage repaid when you sell, refinance, or move. For first-time buyers. Not a grant.

IHCDA Next Home

2.5% or 3.5% of the price, also a repayable second, open to first-time and repeat buyers. The path when you have owned before.

IHCDA Step Down

A rate-focused program with no down payment assistance, for first-time buyers who want the IHCDA loan without a second mortgage attached.

FHA, VA & USDA

FHA from 3.5% down, VA at zero down for veterans, and USDA at zero down across rural Indiana. IHCDA's First Step and Next Home pair with an FHA or conventional loan; VA and USDA are their own zero-down paths.

Jumbo & self-employed

Above the $832,750 conforming limit, plus bank-statement and 1099 loans for business owners whose tax returns understate their income.

Investor & bridge

DSCR loans for rentals, including ratios below 1.0, and bridge financing so you can buy the next home before selling the current one.

The 2026 Indiana Home Loan Guide
Every Indiana loan type compared by credit and down payment. Free.

Why work with Mike

Most Indiana buyers who search for IHCDA help land on a national aggregator that sells the lead three times before anyone calls back. That is not us. Mike Certo is a branch manager with Cornerstone First Mortgage who works Indiana files himself, and he will tell you straight which path fits: First Step when you are a first-time buyer who needs the down payment, Next Home when you have owned before, a plain conventional or FHA when IHCDA adds nothing. He closes these across metro Indianapolis, Fort Wayne, and the rural counties, and he knows the parts that trip Indiana buyers up, the fact that the assistance is a loan you repay rather than a grant, the low prices that still need the right structure, and where USDA reaches out in farm country.

Complex files are the specialty

Self-employed income, jumbo with student debt, DSCR investor loans below a 1.0 ratio, buy-before-you-sell bridge financing, doctors still in residency. These are the files that stall at a call-center lender and close with Mike. If your situation has a wrinkle, that is the reason to call, not a reason to wait.

Indiana home-loan FAQ

Is IHCDA down payment assistance a grant you never repay?

No. This is the most common misunderstanding about Indiana. IHCDA's current programs, First Step and Next Home, are non-forgivable second mortgages. You make no monthly payment on the assistance, but you repay the full amount when you sell the home, refinance, or stop living in it as your primary residence. Neither one is a grant, and neither is forgiven after a set number of years.

What happened to Indiana's Helping To Own and First Place programs?

They are gone. The Helping To Own, or H2O, grant is no longer on IHCDA's program list, and the First Place program ended on December 31, 2023. Plenty of websites still describe an Indiana 3.5% grant that never repays. The current 3.5% option is Next Home, which is a repayable second, not a grant. Always check the current IHCDA lineup before counting on an old program.

How much does IHCDA give, and who qualifies?

First Step gives 5% of the purchase price and is for first-time buyers, unless you are in a HUD-designated target area or have verifiable military status. Next Home gives 2.5% or 3.5% and is open to first-time and repeat buyers. Lenders typically look for around a 640 credit score, and the income and purchase-price limits are set by your county, so confirm them at in.gov/ihcda.

Does Indiana have a real estate transfer tax?

No. Indiana levies no state transfer, deed, or documentary-stamp tax. What you pay instead is a small Sales Disclosure Form fee to the county auditor, ten dollars in most counties, plus flat recording fees. That is far less than the percentage-of-price transfer tax charged in many states, and it keeps an Indiana closing affordable.

What is the fastest way to find out if you can help me?

Call (480) 296-6513 and ask for Mike, or send your scenario through the contact form. Our team calls you back shortly. Pre-approval typically takes 24 to 48 hours once your credit and income documents are in.