Conventional Home Loans in Indiana
Indiana adds almost nothing to the cost of closing a conventional loan: no transfer tax, no mortgage tax, county recording fees measured in tens of dollars, and a conforming limit of $832,750 that covers nearly every home in the state. From 3 percent down, with mortgage insurance that cancels as equity grows. Licensed statewide, in all 92 counties.
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352.
Conventional in Indiana, 2026
Conforming limit
$832,750 in every Indiana county
Down payment
From 3% for eligible buyers; 10% second home; 15% rental
Mortgage insurance
Cancellable at 80% of original value, none from 20% down
State tax on the loan
None; county recording fees only
Closing
Title company near you; no attorney requirement
3%
Minimum down payment on a first home
$0
State transfer and mortgage tax
92
Indiana counties, licensed statewide
4.9
Average of 5,300+ Google reviews
Where conventional math works hardest.
Indiana prices make conventional’s rules unusually kind. At the state’s typical price points, 3 percent down is an achievable number rather than a slogan, the $832,750 conforming limit covers nearly every home including most of Carmel and Zionsville, and mortgage insurance premiums are small in dollars even before they cancel. You can request cancellation at 80 percent of the original value; it ends automatically at 78 percent while the loan is current, and from 20 percent down it never starts.
The state adds almost nothing to the bill. Indiana charges no transfer tax and no mortgage tax, a sales disclosure form and county recording fees are the public-record cost, and closings happen at a title company with no attorney requirement. A conventional refinance here is therefore mostly the lender’s and title fees, which keeps break-evens short.
This page covers conventional loans in Indiana. For the state as a whole, see our Indiana page; the conventional hub explains the program itself. FHA in Indiana is the lower-score comparison, and buying in Indiana and refinancing in Indiana cover the transactions end to end.
Conventional guidelines, and what Indiana adds.
The first two columns are the Fannie Mae and Freddie Mac rules every lender starts from; the last is the Indiana layer. Your pro confirms which apply to your file.
| Requirement | Guideline | In Indiana |
|---|---|---|
| Down payment | As little as 3% on some programs for eligible buyers, commonly 5%; 10% second home; 15% rental | At Indiana prices, 3% on a median home is a four-figure number, not six |
| Credit score | Usually 620; best pricing from about 740 | Same statewide; the score sets the rate and the mortgage insurance premium |
| Mortgage insurance | Required under 20% down; cancellable at 80% of original value, automatic at 78% while the loan is current | Premiums are modest in dollars at Indiana balances, and temporary either way |
| Loan limit | $832,750 for one unit in 2026 | Every county, Indianapolis included; files above it are rare and go jumbo |
| Seller contributions | 3% of the price with under 10% down, 6% with 10% to 25%, 9% above that | Credits toward closing costs are a routine ask in Indiana contracts |
| Debt-to-income ratio | Up to about 45 to 50% with strong compensating factors | The homestead deduction trims the tax escrow on a primary residence and carries through a refinance |
Guidelines are Fannie Mae and Freddie Mac’s; individual lenders can be stricter. The limit is the FHFA figure for 2026 and resets each year.
Three ways Hoosiers use conventional.
One program, three different files. All three close at an Indiana title company near you.
From 3% down
Buying a home
From Fort Wayne to Evansville, eligible buyers can start at 3 percent down on some programs, and most start at 5. From 20 percent down the payment carries no mortgage insurance line at all.
Drop FHA MI
Refinancing out of FHA
FHA’s premium runs for the life of the loan below 10 percent down. With Indiana’s low closing costs, the break-even on a conventional refinance that removes it is often short; we run it before you commit.
Rentals
Investment property
Indiana’s price-to-rent ratios draw investors from everywhere. Conventional finances rentals from 15 percent down, with the rents, taxes and insurance priced into the file honestly.
Low closing costs change which moves make sense.
In states that tax mortgages, a refinance has to clear the tax before it earns a dollar. Indiana has no such tax, so a conventional refinance that removes FHA mortgage insurance, or simply improves the rate, breaks even on the lender’s and title fees alone. That makes moves worthwhile here that would not be worthwhile a state away, and we show the month the arithmetic turns in your favor.
The same logic helps buyers. Seller credits negotiated in an Indiana contract stretch further because there is less to cover, and a 3-percent-down file with the credit applied to closing costs can leave savings intact for the move itself. The homestead deduction then trims the tax escrow once you occupy.
The Region to the river
Conventional purchases and refinances closed at an Indiana title company near you, in all 92 counties.
Six Indiana details on a conventional file.
The state-level facts that shape cost and timing. All of them appear on your Loan Estimate from the start.
01
No state tax on the loan
No transfer tax, no mortgage tax. A sales disclosure form is filed with the deed on a purchase, and county recording fees are the public-record cost.
02
Title company closings
No attorney requirement. Sign at the title office near you or with a mobile notary at home; we coordinate the package either way.
03
Homestead deduction
Indiana’s standard deduction on an owner-occupied home trims the assessed value your escrow is built on, and it carries through a refinance without reapplying.
04
Property taxes in arrears
Indiana bills a year behind, so purchase closings credit the seller’s share forward and the new escrow picks up the next installment. The circuit-breaker caps keep owner-occupied rates predictable.
05
Appraisal waivers happen
On strong files with plenty of equity the agencies sometimes waive the appraisal, saving money and days. We tell you if your file qualifies.
06
The rescission period on refinances
When a refinance is secured by your principal residence, federal law gives you three business days to cancel, counted under federal rules from closing and delivery of the required notices, and the payoff funds on the fourth. A second home or rental has no waiting period.
What would a conventional payment look like?
Set an Indiana price and your down payment. Under 20 percent down, add the mortgage insurance estimate; from 20 percent, that line stays at zero.
The U.S. conventional market right now.
National average rates from the Federal Reserve Bank of St. Louis FRED database: the Freddie Mac survey for conventional and the Optimal Blue indices for FHA and VA, shown as third-party market benchmarks, not MortgagePros pricing. Your rate and APR depend on your credit, down payment, property type and the day you lock.
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
VA 30-year fixed, U.S. average
7.09%
Sources: Freddie Mac Primary Mortgage Market Survey (conventional, 30-year national average, week of Oct 8, 2026) and Optimal Blue Mortgage Market Indices (FHA and VA, 30-year national averages as of Oct 8, 2026), distributed through FRED, Federal Reserve Bank of St. Louis; the figures and dates refresh automatically from the source. These are third-party market benchmarks, not MortgagePros rates and not an offer of credit. Your rate and APR depend on your credit, loan type, property and lock date.
How a conventional loan works with us in Indiana.
Four steps, one licensed pro, an Indiana title company closing.
1
The numbers first
Price or current loan, down payment or equity, and the whole payment with taxes, insurance and any mortgage insurance in one estimate.
2
The right structure
Down payment against pricing tiers, mortgage insurance options side by side, FHA compared where the score makes it close.
3
Underwriting and appraisal
Documents in early, the appraisal ordered where one is needed, conditions cleared as they come in.
4
Close at the title company
Sign near home or with a mobile notary; on a refinance of your own home the payoff funds once that period ends.
Ready to price a conventional loan in Indiana?
An Indiana-licensed pro shows you the payment, the mortgage insurance options and Indiana’s famously short list of closing costs on one page. Free, and it starts without a hard credit pull.
Conventional loans in Indiana, answered.
The questions Indiana borrowers ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What does a conventional loan cost to close in Indiana?
The lender’s fees, title insurance, the closing fee, an appraisal where one is required, prepaid interest and the escrow deposits. Indiana adds no transfer or mortgage tax, just county recording fees, which keeps total costs near the low end nationally. Every figure is itemized on the Loan Estimate.
What credit score do I need?
Most lenders start at 620, with the best pricing from about 740. Below roughly 680 we price FHA beside conventional, because FHA’s insurance does not rise with the score the way conventional’s does, and at Indiana loan sizes the difference is easy to see on one page.
When does mortgage insurance come off?
Request cancellation at 80 percent of the original value, automatic termination at 78 percent while the loan is current, and none at all from 20 percent down. On Indiana balances the premium is modest to begin with, but there is no reason to pay it longer than the rules require.
Can I buy a rental with a conventional loan?
Yes, from 15 percent down on a one-unit home, with pricing adjustments for investment use. Lenders count a share of market rent toward qualifying, and Indiana’s taxes and insurance keep the carrying cost honest. We run the numbers like an underwriter would before you offer.
Does anyone actually need a jumbo loan in Indiana?
Rarely: $832,750 covers nearly every home in the state. The exceptions cluster in Carmel, Zionsville and the lake properties; jumbo in Indiana explains how those few files work.
Do I have to come to Michigan?
No. Your licensed pro handles the loan by phone, email and e-signature, and the closing happens at an Indiana title company near you or with a mobile notary.
Talk to a Indiana-licensed pro about a conventional loan.
Tell us what you are looking to do and where in Indiana. A licensed pro will call back, usually the same business day. Asking does not start a loan or require a hard credit pull.
Prefer to talk?
248-416-1361
Open 24/7. Ask for your pro by name.
Visit our office
880 W. Long Lake Rd, Suite 300
Troy, Michigan 48098, just off I-75. Free parking.
Licensed and reviewed
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352. Rated 4.9 across 5,300+ Google reviews.