Median Sale Price
$280,055
Indiana statewide median — well below the national $417,700 median
+3.7% YoYIndiana · FHA LoansFHA Loans in Indiana:
FHA Loans in Indiana:
Requirements, Limits & Assistance Programs
3.5%Min. down payment
580Min. credit score
$541,287FHA loan limit — every Indiana county
43%Max debt-to-income ratio
The short version
FHA in Indiana at a Glance
FHA loans are government-backed mortgages that let Indiana buyers put as little as 3.5% down with a credit score of 580 or higher.
3.5%
Min. down payment (580+ score)
10%
Down payment if score 500–579
1.75%
Upfront mortgage insurance premium (MIP)
FHA loans are insured by the Federal Housing Administration and originated by FHA-approved lenders like Intra-Mortgage. Indiana is one of the most affordable states in the country, which makes FHA especially powerful here: the statewide median sits far below the FHA loan limit, so the limit is almost never the constraint — your credit, down payment, and debt-to-income ratio are.
Indiana-specific note: Every Indiana county uses the 2026 FHA one-unit limit of $541,287 — Indiana has no high-cost counties, so the same figure applies statewide, from Marion (Indianapolis) to Allen (Fort Wayne) to the Hamilton County suburbs (Carmel, Fishers, Noblesville). With a statewide median near $280,000, most buyers have plenty of headroom under the limit.
Indiana housing market
Market Snapshot
Indiana remains one of the Midwest's most affordable markets — good news for FHA buyers stretching a down payment.
Days on Market
36 days
Statewide average — competitive in the Indy suburbs, calmer elsewhere
StableHomes Sold
7,520
Statewide, May 2026 — steady, buyer-accessible inventory
StableFHA Share (National)
17%
Of U.S. purchase loans are FHA — the flexible-credit path many IN buyers use
National avgIndiana's low prices mean many buyers can qualify for an FHA loan with a down payment under $10,000. The Indianapolis metro — especially the Hamilton County suburbs of Carmel, Fishers, and Noblesville — is the most competitive part of the state, where coming in pre-approved and ready to move matters most.
Down payment help
Indiana First-Time Buyer Programs
These programs can be layered on top of an FHA loan to reduce your out-of-pocket costs at closing.
IHCDA First Step
Indiana Housing and Community Development Authority
- Benefit
- 5% of the purchase price
- Structure
- Down payment assistance for qualifying first-time homebuyers. Must use an IHCDA participating lender.
Source: Indiana Housing and Community Development Authority · Verified Sep 8, 2026
IHCDA Next Home
Indiana Housing and Community Development Authority
- Benefit
- Up to 3.5% of the purchase price
- Structure
- Down payment assistance for qualifying homebuyers (first-time and repeat). Must use an IHCDA participating lender.
Source: Indiana Housing and Community Development Authority · Verified Sep 8, 2026
IHCDA Step Down
Indiana Housing and Community Development Authority
- Benefit
- Discounted first-mortgage rate (no down payment assistance)
- Structure
- Rate-only program for qualifying first-time homebuyers. Must use an IHCDA participating lender.
Source: Indiana Housing and Community Development Authority · Verified Sep 8, 2026
IHCDA Next Step
Indiana Housing and Community Development Authority
- Benefit
- One-time refinance of an existing IHCDA First Place or First Step mortgage
- Structure
- Refinance-only option for current IHCDA First Place or First Step borrowers. Not a purchase down payment program.
Source: Indiana Housing and Community Development Authority · Verified Sep 8, 2026
Stack these programs. IHCDA down payment assistance is designed to sit on top of an FHA (or conventional) first mortgage from a participating lender. First Step offers 5% for qualifying first-time buyers; Next Home offers up to 3.5% for first-time and repeat buyers. Layered correctly, your FHA down payment can be largely or fully covered — you'll still owe closing costs unless the seller or a program covers them. IHCDA programs generally want a 640+ credit score, a step above FHA's 580 floor.
Real scenarios
Indiana FHA Borrower Profiles
Common buyer combinations we see in Indiana — and how FHA works for each.
Profile A
First-time buyer, Indianapolis
Buying a $255,000 home in the Indy metro. W-2 income at $58,000/year, credit score 662, minimal debt. Qualifies for IHCDA First Step (640+ score), covering the 3.5% FHA down payment plus part of closing. Total cash needed at closing: modest, and well under the FHA limit.
3.5% downIHCDA eligible~35 day close
Profile B
Suburban buyer, Carmel / Fishers
Competing for a $370,000 home in fast-moving Hamilton County. Credit 705, stable W-2 income. FHA works, but in the most competitive Indy suburbs, coming in fully pre-approved is what wins the offer. Still comfortably below the $541,287 limit.
Get pre-approved firstCompetitive market30–40 day close
Profile C
Self-employed buyer, Bloomington
2-year self-employed history, Schedule C income averaging $71,000/year after write-downs, credit score 649. FHA accepts a 2-year average. Needs 2 years of complete tax returns, a year-to-date P&L, and business bank statements. Down payment: 3.5% (~$8,750 on a $250K home).
2-yr tax returns needed+7–10 day underwriting40–52 day close
Profile D
Credit-rebuilding buyer, Fort Wayne
Credit score 588 after a resolved collection. FHA allows 580 with 3.5% down, so this buyer qualifies — but likely not for IHCDA assistance, which wants 640+. Buying a $205,000 home; down payment 3.5% ($7,175). A few months of credit work could unlock IHCDA next time.
Score 580–619 tierIHCDA needs 640+36–45 day close
Run the numbers
Indiana FHA Payment Estimator
Estimate your monthly payment including MIP — the piece most calculators leave out.
Indiana median: $280,055 · FHA limit: $541,287
Rates vary by credit score and lender
Monthly P&I
$1,784
Principal & interest
Monthly MIP
$124
Mortgage insurance premium (MIP)
Total Monthly
Talk to a loan officer$1,907
Before tax & insurance
Estimates only. Does not include property tax, homeowner's insurance, or HOA dues. MIP rate assumes LTV > 90% for loans ≥ 30 years. Not a commitment to lend.
Answers to real questions
Indiana FHA Loan FAQs
From the field
An Indiana Loan Officer's Take on FHA
"I grew up in Fort Wayne, so Indiana buyers are personal to me. The thing I tell people here: our prices are low enough that the FHA limit almost never matters — it's your credit and your debt-to-income that decide the deal. Get to a 640 and IHCDA assistance opens up, which can cover most of your down payment. That's a huge advantage in a state this affordable."
Katie Smith
VP of Operations & Senior Loan Officer, Intra-Mortgage — Licensed in FL, IN, OH, MIKatie is originally from Fort Wayne and licensed across Indiana, so she knows the state's markets — from the competitive Indy suburbs to more affordable communities — firsthand. She specializes in first-time buyers layering IHCDA assistance with FHA to cut cash-to-close.
What she watches for on Indiana FHA files:
- Buyers at 580–639 who want IHCDA but need a few points more credit to qualify
- Property-condition flags on older homes in Fort Wayne, Gary, and central Indy
- Self-employed buyers missing year 2 of tax returns at application
Sources & references
Where these figures come from
- 2026 FHA loan limits by county (every Indiana county at the $541,287 floor; no high-cost counties)U.S. Dept. of HUD
- 2026 conforming loan limit baseline ($832,750), which sets the FHA floorFederal Housing Finance Agency
- IHCDA First Step and Next Home assistance terms and eligibilityIndiana Housing & Community Development Authority
IHCDA-Participating Lender
Access to Indiana's DPA programs
5.0 Google Rating
Verified borrower reviews
NMLS #2620605
Equal Housing Lender
Licensed in FL, IN, OH, MI
Multi-state mortgage guidance
Ready to move forward?
Talk to an Indiana FHA specialist
Get straight answers on limits, IHCDA assistance, and what you actually need to close — no obligation.