City of Evansville HOME Homebuyer Program

What is City of Evansville HOME Homebuyer Program?

City of Evansville HOME Homebuyer Program is a forgivable loan for homebuyers in Evansville, Indiana, administered by City of Evansville Department of Metropolitan Development (DMD).

• The City of Evansville, through its Department of Metropolitan Development, administers a HUD HOME-funded Homebuyer Program offering 0% non-interest-bearing forgivable loans for down payment, closing costs, and principal reduction to first-time buyers at or below 80% AMI buying within city limits. Assistance is delivered through CHDO/subrecipient partners, with affordability periods of 5, 10, or 15 years tiered by the amount of HOME assistance. Recapture is from net proceeds only.
• 0% forgivable HOME loan.
• Down payment, closing cost, and principal reduction.
• Tiered 5/10/15-year forgiveness.
• Recapture only from net proceeds.
• Subordination/refinance allowed with DMD approval.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program.

Do you have to pay it back?

City of Evansville HOME Homebuyer Program is a forgivable loan, so the balance is forgiven once the program's conditions are met.

• Repayment is triggered by Recapture of forgivable mortgage balance if sold or no longer primary residence during affordability period; repaid from net proceeds only.
• The assistance is recorded in Subordinate (DMD mortgage / deed restriction) position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Evansville HOME Homebuyer Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

City of Evansville HOME Homebuyer Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income may not exceed 80% AMI (Evansville, IN MSA / Vanderburgh County); verified for all members over 18.
• The limit applies to total household income, not only the borrower’s.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Evansville HOME Homebuyer Program caps the purchase price as follows: Modest housing - may not exceed 95% of area median purchase price (HUD-verified; ~$219,000 existing / ~$319,000 new construction per Jan 2026 DMD figures).

• Eligible property types include single-family (up to 4 units, with longer affordability), condominium, and cooperative.
• New construction is eligible.

Where does it apply?

City of Evansville HOME Homebuyer Program is a federal program, so it is not limited to Indiana.

How do you apply?

Applications for City of Evansville HOME Homebuyer Program go through City of Evansville Department of Metropolitan Development (DMD), which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through Housing counseling/homebuyer education by an approved partner agency.

2. 2

   Contact City of Evansville Department of Metropolitan Development (DMD) to reserve funds

   Funds are reserved through Administered through CHDOs/subrecipients (e.g., HOPE of Evansville, CAPE of Evansville), and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.