VA Home Loans in Indiana
More than 300,000 veterans live in Indiana, alongside the families at Naval Support Activity Crane, Grissom Air Reserve Base and Camp Atterbury. A VA loan is still one of the most valuable benefits most of them can use: nothing down, no monthly mortgage insurance, no transfer tax to pay, and an Indiana-licensed lender who closes VA loans every week.
Indiana-DFI Mortgage Lending License 59609. NMLS #1925352.
VA in Indiana, 2026
Down payment
$0 with full entitlement
Loan limit
None with full entitlement
Funding fee, first use
2.15% with less than 5% down; exempt if you receive VA disability compensation
Property tax benefits
Deductions on 2026 bills; credits and a 100% deduction from the 2026 assessment, paid 2027
Transfer and mortgage tax
None
$0
Down payment with full entitlement
0.5%
Funding fee on an IRRRL streamline
$0
Indiana transfer and mortgage tax
92
Indiana counties, licensed statewide
Why a VA loan is the right first question for an Indiana veteran.
Indiana’s prices make the VA benefit go a long way: a $300,000 home in Indianapolis, Fort Wayne, Evansville or South Bend with nothing down, no monthly mortgage insurance, and a rate that is usually competitive with conventional pricing. There is no loan limit with full entitlement, so a $700,000 home in Carmel or Zionsville is as financeable as a starter in Terre Haute.
Indiana adds no state tax to the benefit. There is no transfer tax and no tax on recording the mortgage, so a VA purchase or an IRRRL closes for the lender’s and title company’s fees alone, and the homestead deduction with the 1 percent tax cap keeps the escrow low. The VA requires a wood-destroying insect inspection on Indiana homes. And after closing, a disabled veteran can claim Indiana’s veteran property tax benefits, which House Enrolled Act 1210-2026 restructures from the January 1, 2026 assessment date, for taxes first payable in 2027.
This page covers the VA program as it works in Indiana. For the state as a whole, see our Indiana page; for the benefit itself, the funding fee and eligibility in depth, see the VA hub. If you are comparing, FHA in Indiana is the usual alternative, and for a veteran it is often the more expensive one.
Three ways to use the benefit in Indiana.
Buying, dropping the rate on a VA loan you already have, or pulling equity out. With no mortgage tax, each of them costs less to close here than in most states.
Buying
VA purchase
Nothing down with full entitlement and no loan limit. The funding fee is 2.15 percent on first use or 3.3 percent after, financed into the loan and waived for veterans receiving disability compensation. Sellers can pay your closing costs, and may also pay the funding fee and prepaids as concessions, which the VA caps at 4 percent of the loan.
Lower payment
VA IRRRL streamline
Replace a VA loan with a lower rate, usually with no appraisal and no income verification, for a 0.5 percent funding fee. With no Indiana tax on the new mortgage, an IRRRL here costs less to close than in states that tax the new mortgage, which can shorten the break-even.
Use equity
VA cash-out refinance
Replace any loan, VA or not, with a VA loan for up to 100 percent of the value under VA rules, though most lenders cap it at 90. Indiana veterans use it for a roof or furnace, debt consolidation, or to move from an FHA loan and drop the mortgage insurance for good.
The funding fee, and what applies in Indiana.
The fee is set by federal law and fixed through November 2031. The last column is what an Indiana veteran should know about each row.
| Your situation | First use | Subsequent use | In Indiana |
|---|---|---|---|
| No down payment | 2.15% of the loan | 3.3% of the loan | The seller can pay your closing costs; the funding fee and prepaids count as concessions, capped at 4% of the loan |
| 5% to 9.99% down | 1.5% | 1.5% | No state tax to reduce; a down payment only lowers the funding fee and the payment |
| 10% or more down | 1.25% | 1.25% | Rarely worth it; VA charges no mortgage insurance and Indiana charges no mortgage tax |
| IRRRL streamline refinance | 0.5% | 0.5% | No transfer or mortgage tax on the new loan; the title company’s fee and lender costs are the whole bill |
| Exempt | Receiving VA disability compensation, or eligible and taking retirement pay instead; Purple Heart recipients on active duty; surviving spouses receiving DIC | Same | The same rating usually qualifies you for Indiana’s disabled veteran property tax benefits after closing |
Lenders set credit and income rules; the VA sets none. Most want a 580 to 620 score and residual income after the payment. Indiana’s low tax escrow helps that test.
Indiana’s property tax benefits for disabled veterans.
Indiana assesses property as of January 1 and bills it the following year, so the 2025 assessment is paid in 2026 and the 2026 assessment in 2027. For the 2025 assessment, paid in 2026, a disabled veteran has two deductions from assessed value that can be combined: $14,000 for a veteran with a total disability, or a veteran 62 or older with a rating of at least 10 percent, on a home assessed under $240,000; and $24,960 for a veteran who served during a recognized wartime period with a service-connected rating of 10 percent or more. Beginning with the January 1, 2026 assessment date, for taxes first due and payable in 2027, House Enrolled Act 1210-2026 replaces them: a veteran with a total disability receives a deduction of 100 percent of the homestead’s assessed value, which removes the property tax on the home, and the other deductions become credits of $350 for wartime veterans with at least a 10 percent service-connected rating and $250 for veterans 62 or older with at least a 10 percent rating, which can be combined.
You apply with the county auditor after closing with your discharge papers and VA rating letter; veterans already receiving a deduction are converted automatically. Because the rules changed during 2026, your pro confirms the benefit that applies to the year you buy and estimates your escrow with it.
Evansville to South Bend
VA loans closed at an Indiana title company near you, wherever in the state the home is.
Six Indiana details on a VA file.
The VA rules are national. These are the parts that are particular to Indiana.
01
No transfer or mortgage tax
The deed records for a flat county fee and the sales disclosure form is paperwork, not a tax. A VA purchase or IRRRL in Indiana closes for the lender’s and title company’s fees, which is why the break-even on an IRRRL is short here.
02
Termite inspection
The VA requires a wood-destroying insect inspection on homes everywhere in Indiana, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
03
Veteran property tax benefits
Apply with the county auditor after closing. For the 2025 assessment, paid in 2026: deductions of $14,000 (total disability, or age 62 with a 10 percent rating, on a home assessed under $240,000) and $24,960 (wartime service with a 10 percent rating). From the January 1, 2026 assessment date, first payable in 2027, under House Enrolled Act 1210-2026: a 100 percent homestead deduction for total disability, and credits of $350 and $250 that can be combined.
04
Taxes a year in arrears
The bill you pay in May and November covers the previous year. The seller credits you at closing for the taxes that accrued while they owned the home, and the escrow is yours after that.
05
Condos need VA approval
A condo must be on the VA’s approved list before you can use the benefit on it. Most established buildings in Indianapolis are; we confirm before you offer.
06
Buying near base
Homes around Crane, Grissom and Camp Atterbury change hands between service members and Guard families, and lenders and appraisers there see VA loans regularly. The funding fee is charged once per loan, not per move.
What would a VA payment be in Indiana?
Choose VA as the loan type and set the down payment to zero. The mortgage insurance line stays at zero, which no other loan can match; use a tax rate near 1 percent for a homestead and add insurance to see the whole payment.
The U.S. VA 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. VA loans often price competitively against conventional loans, depending on the borrower, lender and market, and there is no monthly mortgage insurance in the payment, so compare the whole payment rather than the rate alone.
VA 30-year fixed, U.S. average
7.09%
Conventional 30-year fixed, U.S. average
7.40%
FHA 30-year fixed, U.S. average
7.18%
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. MortgagePros is not affiliated with, endorsed by, or acting on behalf of the Department of Veterans Affairs or any government agency.
How a VA loan works with us in Indiana.
Four steps, one licensed pro who closes VA loans every week, and a closing at an Indiana title company near you.
1
Eligibility and the COE
We pull your Certificate of Eligibility, confirm your entitlement, and check whether you are exempt from the funding fee and qualify for the Indiana veteran property tax benefits.
2
Pre-approval with real numbers
Income, credit and residual income verified, with the homestead tax rate, insurance and any HOA dues in the payment.
3
Property and building checks
Termite inspection ordered, condo approval confirmed, and likely appraisal items flagged, so the VA appraisal does not surprise anyone.
4
Close at the title company
Signing happens at an Indiana title company near you or with a mobile notary. The funding fee, if any, is on the statement exactly as quoted.
Ready to use your VA benefit in Indiana?
A licensed pro confirms your eligibility, your funding fee and any property tax benefit, and quotes your rate with the homestead tax rate and insurance in the numbers. Free, and it starts without a hard credit pull.
VA in Indiana, answered.
The questions Indiana veterans ask us most. If yours is not here, a licensed pro will answer it directly, with no obligation.
Is there a VA loan limit in Indiana?
Not if you have full entitlement: the VA guarantees a quarter of any loan amount a lender will approve, so a $700,000 home in Carmel or Zionsville can be financed with nothing down. If part of your entitlement is tied up in another home you still own, the county conforming limit of $832,750 applies to the remainder and a down payment may be needed; we work it out from your Certificate of Eligibility.
How much is the funding fee, and can I avoid it?
2.15 percent of the loan on first use with nothing down, 3.3 percent on later uses, 1.5 percent with 5 percent down and 1.25 percent with 10 percent down; 0.5 percent on an IRRRL. It is waived if you receive VA disability compensation, are eligible for it but take retirement pay instead, received a Purple Heart on active duty, or are a surviving spouse receiving DIC. It is usually financed into the loan.
What property tax breaks do disabled veterans get in Indiana?
Indiana assesses as of January 1 and bills the following year. For the 2025 assessment, paid in 2026, two deductions from assessed value can be combined: $14,000 for a veteran with a total disability, or a veteran 62 or older with a 10 percent rating, on a home assessed under $240,000; and $24,960 for wartime service with a service-connected rating of 10 percent or more. From the January 1, 2026 assessment date, with taxes first due and payable in 2027, House Enrolled Act 1210-2026 changes the structure: a 100 percent homestead deduction for veterans with a total disability and their unremarried surviving spouses, a $350 credit for wartime veterans with at least a 10 percent rating, and a $250 credit for veterans 62 or older with at least a 10 percent rating, which can be combined. Apply with the county auditor after closing; existing deductions convert automatically.
Does the VA require a termite inspection in Indiana?
Yes, everywhere in the state. A wood-destroying insect inspection on the standard NPMA-33 form is required, with any active infestation or damage treated before closing. The seller often pays for the inspection, and the VA now allows the buyer to pay for it as well.
Are there any Indiana taxes on a VA loan?
No. Indiana has no transfer tax and no tax on recording a mortgage, only a flat county recording fee and the sales disclosure form. That keeps VA closing costs down.
Do I have to come to Michigan?
No. Your licensed pro handles everything by phone, email and e-signature, pulls your Certificate of Eligibility for you, and the closing runs through an Indiana title company near you or with a mobile notary.
Talk to a Indiana-licensed pro about VA loans.
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.
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