Trying to choose between IHCDA’s Next Home and First Step for your Avon purchase? The right fit can lower your upfront cash and shape your monthly payment. You want a clear, local answer that matches how homes are priced and sold in Hendricks County. In this guide, you’ll learn who each program serves, how much help you could receive, and what to check before you apply. Let’s dive in.
First Step vs. Next Home: what they are
First Step is designed for first‑time buyers and typically provides larger down‑payment assistance, around 6% of the purchase price. Next Home serves buyers who may not be first‑timers and usually offers 2.5% or 3.5% assistance. Both programs have county‑specific income and purchase price limits and must be used with participating lenders. You can review current program details on the IHCDA homebuyer programs page from the State of Indiana’s housing agency.
- Explore IHCDA program options and terms: IHCDA Homebuyer Programs
- Check the latest income and acquisition limits for Hendricks County: IHCDA Income & Acquisition Limits
Avon market snapshot: why DPA matters here
Avon sits in a mid‑price suburban range, where a few percent of the purchase price can equal thousands of dollars in assistance. Mortgage rates also shape affordability. As of early October 2025, the 30‑year fixed national average was about 6.3 percent, which makes down‑payment help more valuable because it reduces financed principal. See the weekly rate trend from Freddie Mac’s Primary Mortgage Market Survey for context.
- Current mortgage rate context: Freddie Mac PMMS
- Avon household context: The town’s median household income and population trends are available in U.S. Census QuickFacts.
- Schools and commute matter to many buyers. Learn more at the Avon Community School Corporation.
Who First Step fits best
Best for true first‑time buyers. If you have not owned a home in the last three years, First Step often makes the most sense because it can deliver around 6% down‑payment assistance. That larger amount reduces your cash‑to‑close and may improve monthly affordability. Confirm that your income and the home price fall under Hendricks County’s limits, and verify credit score and debt‑to‑income with your lender.
Who Next Home fits best
Best for repeat or move‑up buyers. If you currently own or owned recently, Next Home is designed for you. The assistance is smaller, typically 2.5% or 3.5%, but eligibility is broader. If you are bringing equity from a sale, Next Home’s DPA can round out your funds and help you avoid dipping into reserves. Check county limits and loan product options with your lender.
How much help could you get?
Here is simple math many Avon buyers use to compare programs:
Example A: $350,000 purchase
- First Step at 6% equals $21,000 in assistance.
- Next Home at 3.5% equals $12,250 in assistance.
- Difference: $8,750 more with First Step. At a 6.3% 30‑year rate, financing $8,750 less saves roughly $54 per month in principal and interest.
Example B: $420,000 purchase, move‑up buyer
- Next Home at 3.5% equals $14,700 in assistance that can combine with proceeds from your sale. This may cut the cash you need at closing or reduce reliance on bridge funds.
Assistance is tied to the purchase price and cannot exceed the appraised value. Always verify your exact DPA amount and loan terms on the IHCDA program page.
Key differences to compare
- Eligibility
- First Step: usually first‑time buyers, with limited exceptions in targeted areas.
- Next Home: often available to repeat buyers.
- Assistance amount
- First Step: larger, around 6%.
- Next Home: smaller, typically 2.5% or 3.5%.
- Loan options
- Both support FHA or conventional 30‑year fixed routes. Your lender will match you to the right product.
- Income and purchase price caps
- Limits vary by county and program. Check Hendricks County’s current limits on IHCDA’s limits page.
- Process and timing
- Both programs require lender reservation steps. Work with a participating lender early so your offer stays competitive.
Local Avon considerations
- Taxes and escrow
- Property taxes vary by parcel and tax district, which affects your monthly payment and qualifying ratios. Look up a property’s tax details using the Hendricks County Treasurer parcel search and review with your lender.
- New construction choices
- Avon has active new‑construction communities from national builders. Many IHCDA programs can be used on new homes when the builder and lender participate and the purchase fits program limits. See an example of an Avon community from a national builder at Lennar’s Bellwood page.
How to choose in 10 minutes
- Confirm first‑time status for all borrowers.
- Check Hendricks County income and purchase price limits for both programs.
- Estimate your DPA at your target price for First Step and Next Home.
- Compare FHA vs. conventional options and mortgage insurance with your lender.
- Review property tax estimates for a few homes in your budget.
- Plan your offer timeline and get fully preapproved with a participating lender.
- Decide which program meets your cash‑to‑close and monthly payment goals.
To find a participating lender and program guides, start here: IHCDA Homebuyers.
Ready to compare your numbers?
If you are weighing First Step vs. Next Home for a specific Avon property, let’s run the numbers together and map an offer strategy that fits your budget and timeline. Reach out to Lee Skiles for a local consult and a clear plan.
FAQs
What is IHCDA’s First Step program in Indiana?
- First Step is an IHCDA offering for first‑time buyers that typically provides around 6% down‑payment assistance, subject to income and purchase price limits and lender participation.
Can repeat buyers in Avon use First Step?
- Generally no, unless you qualify under first‑time rules or a targeted census tract exception; most repeat buyers look to Next Home instead.
How much assistance does Next Home provide in Avon?
- Next Home typically offers 2.5% or 3.5% of the purchase price, with caps tied to the appraised value and county limits.
Can I use these programs on new construction in Avon?
- Yes, if the builder and your participating lender accept the program and the home meets IHCDA limits and guidelines.
How do Avon property taxes affect my loan approval?
- Higher or lower taxes change your monthly escrow and can affect debt‑to‑income ratios, so review parcel‑level tax data for each listing and share it with your lender before applying.
