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Buying a home

Data from November 2026

Buying a home in Indiana

A typical home in Indiana is worth $218,200 (Average 2020–2024). The FHA limit for one unit is $541,287 depending on the county. Here is the minimum down payment each loan type asks at that price, every county’s limit, and the state’s assistance programs.

Minimum down payment Limits by county
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Typical home
$218,200
median value, Average 2020–2024
34% less than the U.S.
FHA limit
$541,287
one unit, by county
All of Indiana uses the national floor ($541,287).
Conforming limit
$832,750
one unit, 2026 data
Above this amount, the loan is a “jumbo” loan.
Minimum FHA down payment
$7,637
3.5% of a $218,200 home
VA and USDA ask for no down payment if you qualify.

Source: American Community Survey (ACS) 5-year estimates Average 2020–2024 American Community Survey (ACS) 5-year estimates Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD) Source: Conforming loan limits (FHFA) Data from 2026 data Conforming loan limits (FHFA)

Down payment

How much each loan asks up front

For a $218,200 home, the typical value in Indiana. The minimum down payment is each program’s rule. The monthly figure is an example of principal and interest over 30 years at the 7.18% average rate (November 5, 2026): no taxes, insurance or mortgage insurance.

Your price, rate and down payment will differ: run the calculator with your numbers. Closing costs are extra.

Minimum down payment and monthly payment for a $218,200 home in Indiana

  1. FHA Program rule

    Minimum down3.5%

    In dollars$7,637

    Per month$1,426

    With a credit score of 580 or more. Carries mortgage insurance (MIP) up front and every month.

    HUD Handbook 4000.1 (Update 18), II.A.2.a.iv — Minimum Required Investment · In effect since September 14, 2016

  2. Conventional Program rule

    Minimum down3%

    In dollars$6,546

    Per month$1,434

    3% is the lowest standard option. With less than 20% down you pay private mortgage insurance (PMI) until you have more equity.

    Fannie Mae Selling Guide B5-6-01 — HomeReady Mortgage Loan and Borrower Eligibility · In effect since January 1, 2024

  3. VA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,478

    For veterans, service members and some spouses. No down payment as long as the price is not above the appraisal; charges a one-time funding fee.

    VA: Purchase loan — benefits · In effect since January 1, 2020

  4. USDA Program rule

    Minimum down0%

    In dollars$0

    Per month$1,478

    Only homes in eligible rural areas and households within USDA’s income limit. Finances the full price.

    7 CFR §3555.103 — Maximum loan amount (Guaranteed Rural Housing Program) · In effect since December 9, 2013

  5. ITIN or other Example, not a rule

    Minimum down15%

    In dollars$32,730

    Per month$1,256

    ITIN loans follow no federal rule: each lender sets its own down payment and rate, and usually asks for more. 15% is an example.

Loan limits

FHA and conforming limit in every county

In 2026 data, every county in Indiana uses the national FHA floor ($541,287) for one unit. The conforming limit is the most Fannie Mae and Freddie Mac will buy; above it, the loan is a “jumbo”.

One unit. For 2- to 4-unit homes, each county page has the full table. Source: FHA mortgage limits (HUD) Data from 2026 data FHA mortgage limits (HUD)

Down payment help

Indiana programs for buyers

1 verified program that put money toward the down payment or closing costs, or give a tax credit. With the source wording and the date we checked it.

Some help is a grant you never repay; other help is a second loan that is forgiven over the years or repaid when you sell. Each program’s tag says which kind it is.

See all programs

  • First Step

    Verified November 5, 2026

    Indiana state agency 30-year FHA or conventional mortgage for first-time buyers (or homes in designated areas), with down payment assistance as a second mortgage with no interest or payments, repaid when the first mortgage ends

    • Deferred
    See details

What the state publishes

Indiana rules that change the math

Exemptions that lower property tax and taxes paid when the deed is recorded, summarized from the official page each one cites.

Property tax in Indiana

Exemptions and caps

  • Homestead standard deduction: the amount drops each year

    The amount of the homestead standard deduction depends on the year of the assessment date. For assessment dates after December 31, 2024, it is $48,000 in 2025, $40,000 in 2026, $30,000 in 2027, $20,000 in 2028 and $10,000 in 2029. Beginning with the 2030 assessment date, and every year after, it is $0.

    IC 6-1.1-12-37 · Indiana Department of Local Government Finance (DLGF), Form HC10 · Verified October 24, 2026

  • Supplemental homestead deduction (rises each year)

    Anyone entitled to the homestead standard deduction also receives a supplemental deduction from the assessed value of the home. It applies after the standard deduction and before any other deduction, exemption or credit. For property taxes first due and payable after December 31, 2025, it is a percentage of the assessed value left after the standard deduction: 40 percent in 2026, 46 percent in 2027, 52 percent in 2028, 57 percent in 2029, 62 percent in 2030 and 66.7 percent in 2031 and every year after. For 2025 taxes it was 37.5 percent of the value up to $600,000 and 27.5 percent of the assessed value above $600,000.

    IC 6-1.1-12-37.5 · Indiana Department of Local Government Finance (DLGF), Form HC10 · Verified October 24, 2026

  • Credits for owners 65 and older

    The Over 65 Credit is $150. If you share ownership with others and not all of them are 65 or older, the credit is reduced proportionally, unless the only owners are you and your spouse. There is also an Over 65 Circuit Breaker Credit: it equals this year's tax minus 1.02 times the prior year's tax. In other words, the tax does not rise more than 2 percent over the prior year. For the Over 65 Credit, adjusted gross income (AGI) from two years before the year the taxes are due may not exceed $60,000 on a single return, or $70,000 on a joint return or, combined, when you share ownership with others. For the Circuit Breaker, the limits are $60,000 (single return) or $70,000 (joint return with your spouse), and they change each year with the Social Security cost-of-living increase. For example, 2026 taxes use 2024 AGI.

    Indiana Department of Local Government Finance (DLGF), State Form 43708 · Verified October 24, 2026

Your next steps

Where to go next in Indiana

What you can do today, free and without giving personal information. Go in order: your numbers first, then the help.

  1. Run the numbers with your figures

    The Indiana calculator already has the typical value, the average rate and the state’s property tax.

  2. Check whether you qualify for help

    Each program says what it gives, who qualifies and when we checked it.

  3. Talk to a counselor for free

    21 HUD-approved agencies help you prepare to buy; 7 say they serve in Spanish.

  4. Follow the steps to buy a home

    From the budget to the keys, in order.

Frequently asked questions

How much down payment do I need for a typical home in Indiana?

For a $218,200 home (typical value, Average 2020–2024), the FHA minimum (3.5%) is $7,637 and the conventional minimum (3%) is $6,546. VA and USDA ask no down payment if you qualify. State programs can cover part of it.

Are there high-cost counties in Indiana?

No. In 2026 data, every county in Indiana uses the national FHA floor ($541,287) for one unit.

What is the conforming loan limit in Indiana?

In 2026 data, the conforming limit for one unit is $832,750 in every county in Indiana: the most Fannie Mae and Freddie Mac will buy. Above it, the loan is a “jumbo” and each lender sets its own terms.

What would the monthly payment be on a typical home in Indiana?

With $218,200, the FHA minimum down payment ($7,637) and the 7.18% average rate (November 5, 2026), principal and interest over 30 years comes to about $1,426 a month. Tax, insurance and mortgage insurance are missing: the calculator adds them.

What down payment help is there in Indiana?

We have verified 1 state program in Indiana that put money toward the down payment or closing costs, or give a tax credit. Each shows the source wording, who qualifies and the date we checked it.