Indiana doesn’t have a single dedicated “military mortgage program” the way some states do. What it has is better: a set of IHCDA programs where veterans and active‑duty buyers get exemptions and advantages that regular buyers don’t. Combined with the VA loan and the Military on the Move® rebate, the total package available to a West Central Indiana military buyer is significant.
IHCDA First Place Program
The First Place Program provides up to 6% of the purchase price in down payment assistance.
- Veterans are exempt from the first‑time buyer requirement, meaning you can qualify even if you’ve owned a home in the past three years.
- Works with FHA, VA, or conventional loans through IHCDA‑approved lenders.
- Income limits apply (vary by county and family size).
- Requires a homebuyer education certificate.
For military families relocating on PCS orders, this exemption is critical — you don’t lose eligibility just because you owned a home at your last duty station.
IHCDA Next Home Program
The Next Home Program offers 3–4% down payment assistance structured as a deferred loan, forgiven after two years of continuous occupancy.
- FHA borrowers: 4% assistance.
- Conventional borrowers: 3% assistance.
- Minimum credit score: 660+.
- No income ceiling restriction.
- Fully forgiven if you stay two years — no repayment required.
For military buyers, two years often matches a standard assignment cycle. If you expect to remain in Indiana for at least that long, this program can effectively provide free down payment assistance.
IHCDA First Step + Step Down Programs
These are bond‑funded rate programs that provide below‑market interest rates. Veterans receive exemptions that make them easier to access compared to civilian buyers.
- Lower interest rates mean lower monthly payments.
- Can be paired with other assistance programs.
- Availability depends on bond funding cycles — check with an IHCDA‑approved lender.
Indiana Military Family Relief Fund
While not a mortgage program, the Military Family Relief Fund provides emergency financial grants to service members and their families.
- Covers hardships during deployment, PCS, or unexpected financial stress.
- Can bridge gaps that might otherwise prevent closing.
- Administered by the Indiana Department of Veterans Affairs.
Disabled Veteran Property Tax Deduction
Indiana veterans with a service‑connected disability rating may qualify for a property tax deduction:
- Up to $37,440 in assessed value reduction annually.
- Filed through the county auditor’s office.
- Applies every year you own the home.
This deduction reduces your property tax bill and provides ongoing savings beyond the closing table.
Mortgage Credit Certificate (MCC)
The MCC program provides a federal tax credit of up to $2,000 annually on mortgage interest.
- Available through IHCDA‑approved lenders.
- Can be layered with VA loans and other assistance.
- Provides long‑term tax savings for military families.
Stacking Guide: How Multiple Programs Layer Together
Here’s how these benefits can combine:
- Military on the Move® rebate → 20% of commission back at closing.
- VA Loan → $0 down, no PMI.
- IHCDA First Place or Next Home → Down payment assistance.
- Disabled Veteran Tax Deduction → Annual property tax savings.
- MCC → Federal tax credit on mortgage interest.
Together, these programs can save thousands upfront and thousands more over the life of the loan.
How to Find IHCDA‑Approved Lenders in West Central Indiana
Not all lenders participate in IHCDA programs. To access these benefits:
- Search the IHCDA website for approved lenders.
- Confirm VA loan compatibility if you plan to stack benefits.
- Ask specifically about veteran exemptions — not all loan officers are familiar with them.
Working with a lender who understands both VA and IHCDA programs ensures you don’t miss out on benefits you qualify for.
Ready to Get Started?
Indiana’s housing programs give military buyers more leverage than most realize. When combined with the VA loan and Military on the Move® rebate, the financial advantage is significant.
