Mortgage in Indiana

The Hoosier State is one of the most affordable states in the nation. With a median home price of $161k , your dollar stretches much further in Indiana than in some coastal cities. If you're thinking of moving to Indiana, see just how much home you can afford with our Indiana mortgage calculator.

Mortgage Options in Indiana

Whether you're moving to Indiana or buying another home within the state, you can choose from three primary mortgage types.

• Indiana conventional mortgage: A traditional mortgage is one of the best choices for living in Indiana. Since housing prices are on the lower end, many mortgages are conforming loans, which you can get with as little as 3% down, a credit score of 620, and a debt-to-income ratio of 50% or less. Note that you'll pay private mortgage insurance if you put less than 20% down.
• Indiana FHA mortgage: With lower housing costs, an FHA loan is a fantastic option for buyers with a less-than-ideal credit score. This choice requires a credit score of 580 and 3.5% down. If your credit score is between 500-580, you can still get one of these loans, but you'll need 10% down.
• Indiana VA mortgage: Veterans have access to mortgages backed by the VA. These loans require 0% down and have no PMI. If you're a veteran, be sure to ask your preferred lender about VA loans.

One of the biggest hurdles to homeownership is coming up with the down payment. Fortunately, Indiana offers plenty of incentives on this front!

First-Time Home Buyer Programs in Indiana

Offered by the Indiana Housing and Community Development Authority , three programs assist first-time homebuyers!

The First Place mortgage product provides down payment assistance of up to 6% of the purchase price. The 6% in aid is a 30-year fixed-rate FHA loan.

Eligibility Criteria: Income and purchase price limitations apply. Borrowers must have a minimum credit score of 640 with a debt-to-income ratio below 45%. For those with a ratio between 45% and 50%, the minimum credit score is 680.

The Next Home program provides down payment assistance of up to 3.5% of the purchase price. The 3.5% in aid is a grant, so no repayment is necessary.

Eligibility Criteria: Like First Place, income and purchase price limitations apply. Borrowers must have a minimum credit score of 640 if their DTI is below 45%. For those with a DTI between 45% and 50%, a minimum credit score of 680 applies.

The third program saves borrowers money on their taxes. It is a Federal income tax credit up to a maximum of $2,000 per year.

Eligibility Criteria: Borrowers must meet income limitations.

Indiana Mortgage Calculator: Homeownership Is Possible!

Thanks to a relatively low cost of living and generous homeownership programs, moving to the Hoosier State is generally more affordable than many other places. If you're interested in living in Indiana, check how much you'll pay with our Indiana mortgage calculator!