Home Purchase Loans in Indiana
Indiana charges no transfer tax and no mortgage tax, and its property tax cap that keeps the escrow low once you file the homestead deduction. We are an Indiana-licensed mortgage lender, price every loan type side by side, and are licensed statewide, in all 92 counties, closing at a title company near you.
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352.
Buying in Indiana, 2026
Conforming limit
$832,750 in every county
FHA limit
$541,287 in every county, Indianapolis included
Down payment
From 3% conventional, 3.5% FHA, 0% VA
Transfer and mortgage tax
None; county recording fees only
Closing
Title company near you; no attorney requirement
3%
Minimum down payment on a conventional loan
$0
Indiana transfer and mortgage tax
92
Indiana counties, licensed statewide
4.9
Average of 5,300+ Google reviews
What an Indiana purchase looks like from the financing side.
Indiana keeps the closing simple. There is no transfer tax and no mortgage tax; the deed and the mortgage record for county fees of a few dollars a page, and the sales disclosure form filed with the deed is paperwork, not a bill. Closings run through title companies, the seller customarily pays for the owner’s title policy, and the settlement fee is commonly split. On a $300,000 purchase the buyer’s closing costs are mostly the lender’s fees, the lender’s title policy, the appraisal and the prepaid items, which is less than in almost any neighboring state.
The part people from other states get wrong is property tax. Indiana caps the tax on a homestead at 1 percent of its gross assessed value, with the homestead deduction taking a large slice off the value first, so the bill is lower than the headline rate suggests, and a seller who rented the home out was paying a higher rate than you will. Taxes are paid a year in arrears, in May and November, so the seller credits you their share at closing. Every county is at the $832,750 conforming limit and the $541,287 FHA floor, Indianapolis included, so the only line that matters for most buyers is the one between conforming and jumbo, and few homes cross it.
This page covers buying a home in Indiana. For the state as a whole, including our Indiana licence and every loan we offer here, see our Indiana page; for the purchase process itself, see the purchase hub. If you are weighing programs, FHA in Indiana and VA in Indiana go deeper, and when you own, refinancing in Indiana picks up the story.
Three kinds of Indiana buyers, and how we finance each.
The loan that fits depends less on the house than on your credit, your savings and how long you plan to stay.
First home
Low down payment
Conventional from 3 percent down for eligible borrowers with a 620 score and mortgage insurance you can ask to cancel at 80 percent of the original value, or FHA from 3.5 percent with a 580 score and a $541,287 limit that covers nearly every home from Indianapolis to Fort Wayne, Evansville and South Bend. A documented gift from family can supply the down payment on either.
Moving up
Conventional and jumbo
Carmel, Zionsville, Fishers, Geist and the Lake Michigan shore are the exceptions that cross the $832,750 line. Above it a jumbo loan takes over, with its own credit, reserve and appraisal rules. We price both and tell you when a larger down payment brings the loan back under the limit.
Veterans
VA with nothing down
Camp Atterbury, Grissom, Crane and more than 300,000 Indiana veterans. A VA loan needs no down payment and no monthly mortgage insurance, has no loan limit with full entitlement, and with no state tax on the sale or the loan it closes for the lender’s and title company’s fees alone.
The four loan types, and what each costs to use in Indiana.
Program rules are federal; the last column is what changes in Indiana. Your pro tells you which fits your file.
| Loan | Down payment and credit | In Indiana |
|---|---|---|
| Conventional | 3% down for eligible borrowers from a 620 score; mortgage insurance you can ask to cancel at 80% of the original value, ending automatically at 78% | Conforming limit $832,750 in every county; no state tax on the sale or the loan, so closing costs are mostly the lender’s and title company’s fees |
| FHA | 3.5% down from a 580 score, 10% from 500; mortgage insurance for the life of the loan below 10% down | $541,287 in every county; the FHA appraisal checks condition, which matters on older Indianapolis, Fort Wayne and South Bend housing |
| VA | Nothing down with full entitlement; funding fee 2.15% on first use with nothing down, exempt if you receive VA disability compensation | No loan limit with full entitlement; the VA requires a termite inspection everywhere in Indiana; the seller can pay closing costs as ordinary closing costs; VA caps concessions such as prepaids and the funding fee at 4% |
| Jumbo | Typically 10% to 20% down, 700+ score and reserves after closing | Above $832,750; uncommon outside Hamilton County, Geist and the lakeshore; appraisal review is stricter |
Sellers may pay closing costs within each program’s rules: up to 3% to 9% of the price on conventional depending on the down payment, up to 6% on FHA, and on VA any amount of ordinary closing costs, with concessions such as prepaids and the funding fee capped at 4% of the loan. Indiana sellers customarily pay the owner’s title policy already, so concessions usually go to lender charges, the lender’s title policy and prepaid items.
The homestead deduction and the tax credit: the two Indiana numbers that change your payment.
Your escrow should be built on the homestead rate, not on the seller’s bill. Once you file the homestead deduction with the county auditor after closing, a large share of the assessed value comes off before the rate is applied and the net tax is capped at 1 percent of gross assessed value. A seller who rented the home out, or a listing that quotes last year’s bill on an investor-owned house, overstates what you will pay. We estimate the escrow at the homestead rate so the payment you are approved on is the one you will actually have.
The arrears system works in your favor at closing. Indiana bills taxes a year behind, in May and November, so the seller owes tax for the months they owned the home that has not been billed yet, and it comes to you as a credit on the closing statement. Early in the year that credit can be most of a year’s taxes, which lowers your cash to close. We show it on the estimate so you can plan around it.
The Region to the Ohio River
Purchases closed at an Indiana title company near you, or with a mobile notary at your kitchen table.
Six Indiana closing customs that shape your numbers.
Indiana has no transfer tax and no mortgage tax, so closing costs are mostly the lender’s and the title company’s fees. All of these are on your Loan Estimate from the start.
01
No transfer or mortgage tax
The deed and the mortgage record for county fees of a few dollars a page. The sales disclosure form filed with the deed is required by the state but carries no tax.
02
Title company
Indiana closings are handled by title companies; no attorney is required. The closing or settlement fee is commonly split between buyer and seller.
03
Owner’s title policy
Customarily paid by the seller in most of Indiana, with the buyer paying for the lender’s policy the loan requires.
04
Property taxes a year behind
Two instalments due May 10 and November 10, each covering the previous year. The seller credits you the taxes they owe for the time they owned the home, which can be a large credit early in the year.
05
Homestead deduction and the 1 percent cap
File the homestead deduction after closing; it removes a large share of the assessed value, and the constitution caps a homestead’s net tax at 1 percent of gross assessed value. Your escrow estimate should reflect the homestead rate.
06
Well, septic and flood
Outside the cities many homes are on well and septic; lenders may want inspections. Along the rivers and in parts of the Region, flood insurance is required in a mapped flood zone and goes into escrow.
What would an Indiana purchase cost each month?
Pick a loan type and down payment, then add your county’s homestead tax rate and an insurance figure. The result is the whole payment, which is the number lenders qualify you on.
The U.S. mortgage 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, loan type, the property 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 an Indiana purchase works with us.
Four steps, one licensed pro, and a closing at an Indiana title company near you.
1
Pre-approval with real numbers
Income, assets and credit verified, with the homestead tax rate rather than the seller’s in the payment, so the number you shop with is the one you close at.
2
The right loan, priced side by side
Conventional, FHA, VA and jumbo compared for your file, with Indiana’s low closing costs already in the estimate.
3
Property checks
Appraisal ordered as soon as the contract is signed, well and septic inspections scheduled where the home needs them, and the termite inspection ordered on a VA file.
4
Close near you
At an Indiana title company near you or with a mobile notary. If you would rather sit across a desk, our Troy office is a short drive from northern Indiana.
Ready to buy in Indiana?
An Indiana-licensed pro gives you a pre-approval with the homestead tax rate, insurance and Indiana’s low closing costs already in the numbers. Free, and it starts without a hard credit pull.
Buying in Indiana, answered.
The questions Indiana buyers ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
What closing costs does an Indiana buyer pay?
The lender’s fees, your share of the title company’s settlement fee, the lender’s title policy, an appraisal, the first year of homeowners insurance, and prepaid interest and escrow. There is no transfer tax and no mortgage tax, and the seller customarily pays the owner’s title policy. On a $300,000 purchase with 5 percent down, plan on roughly 2 to 3 percent of the price before any seller credit, less the property tax credit the seller gives you.
How much do I need down?
Conventional loans start at 3 percent down for eligible borrowers with a 620 credit score, FHA at 3.5 percent with a 580 score, and VA loans need nothing down for eligible veterans. A documented gift from family can supply the down payment on all three. Jumbo loans above $832,750 typically want 10 to 20 percent.
Why is my Indiana property tax estimate lower than the seller’s bill?
Two reasons. The homestead deduction removes a large part of the assessed value once you file it, and Indiana’s constitution caps a homestead’s net tax at 1 percent of gross assessed value. A seller who rented the home out paid a higher rate. We estimate escrow at the homestead rate so your payment is not overstated.
Why does the seller give me a tax credit at closing?
Indiana pays property taxes a year in arrears, in May and November. The seller owes tax for the months they owned the home that has not been billed yet, so it comes to you as a credit at closing, and you pay the bill when it arrives.
Are there any Indiana transfer taxes?
No. Indiana charges no tax on the sale and no tax on the mortgage, only county recording fees and a sales disclosure form. There is no state tax on the sale or the loan.
Can I meet you in person?
You can. Our office is at 880 W. Long Lake Road in Troy, Michigan, north of Detroit, a short drive from northern Indiana. Most Indiana clients work with us by phone and e-signature and close at a title company near home, but the door is open.
Talk to a Indiana-licensed pro about buying a home.
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.