Indiana Mortgage Guide 2026
This Indiana mortgage guide covers everything you need to know about getting a mortgage in Indiana — FHA loan limits across all 92 counties, IHCDA down payment assistance, property taxes, closing costs, and the 2026 Indiana housing market outlook.
Indiana Mortgage Guide: Loan Limits by County (2026)
All 92 of Indiana’s counties sit at the national FHA floor for 2026 — unlike many states, Indiana has no high-cost county where FHA or conforming loan limits are elevated above the national baseline. Even Indiana’s most expensive counties, in the Indianapolis-Carmel-Greenwood metro, have median sale prices well below the threshold that would trigger a higher limit.
| County | Conforming Limit | FHA Limit | Notes |
|---|---|---|---|
| Adams | $832,750 | $541,287 | National floor |
| Allen (Fort Wayne) | $832,750 | $541,287 | National floor |
| Bartholomew (Columbus) | $832,750 | $541,287 | National floor |
| Benton | $832,750 | $541,287 | National floor |
| Blackford | $832,750 | $541,287 | National floor |
| Boone (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Brown (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Carroll | $832,750 | $541,287 | National floor |
| Cass | $832,750 | $541,287 | National floor |
| Clark | $832,750 | $541,287 | National floor |
| Clay | $832,750 | $541,287 | National floor |
| Clinton | $832,750 | $541,287 | National floor |
| Crawford | $832,750 | $541,287 | National floor |
| Daviess | $832,750 | $541,287 | National floor |
| Dearborn | $832,750 | $541,287 | National floor |
| Decatur | $832,750 | $541,287 | National floor |
| DeKalb | $832,750 | $541,287 | National floor |
| Delaware (Muncie) | $832,750 | $541,287 | National floor |
| Dubois | $832,750 | $541,287 | National floor |
| Elkhart | $832,750 | $541,287 | National floor |
| Fayette | $832,750 | $541,287 | National floor |
| Floyd | $832,750 | $541,287 | National floor |
| Fountain | $832,750 | $541,287 | National floor |
| Franklin | $832,750 | $541,287 | National floor |
| Fulton | $832,750 | $541,287 | National floor |
| Gibson | $832,750 | $541,287 | National floor |
| Grant | $832,750 | $541,287 | National floor |
| Greene | $832,750 | $541,287 | National floor |
| Hamilton (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Hancock (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Harrison | $832,750 | $541,287 | National floor |
| Hendricks (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Henry | $832,750 | $541,287 | National floor |
| Howard (Kokomo) | $832,750 | $541,287 | National floor |
| Huntington | $832,750 | $541,287 | National floor |
| Jackson | $832,750 | $541,287 | National floor |
| Jasper | $832,750 | $541,287 | National floor |
| Jay | $832,750 | $541,287 | National floor |
| Jefferson | $832,750 | $541,287 | National floor |
| Jennings | $832,750 | $541,287 | National floor |
| Johnson (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Knox | $832,750 | $541,287 | National floor |
| Kosciusko | $832,750 | $541,287 | National floor |
| LaGrange | $832,750 | $541,287 | National floor |
| Lake (Chicago metro) | $832,750 | $541,287 | National floor |
| LaPorte | $832,750 | $541,287 | National floor |
| Lawrence | $832,750 | $541,287 | National floor |
| Madison (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Marion (Indianapolis) | $832,750 | $541,287 | National floor |
| Marshall | $832,750 | $541,287 | National floor |
| Martin | $832,750 | $541,287 | National floor |
| Miami | $832,750 | $541,287 | National floor |
| Monroe (Bloomington) | $832,750 | $541,287 | National floor |
| Montgomery | $832,750 | $541,287 | National floor |
| Morgan (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Newton (Chicago metro) | $832,750 | $541,287 | National floor |
| Noble | $832,750 | $541,287 | National floor |
| Ohio | $832,750 | $541,287 | National floor |
| Orange | $832,750 | $541,287 | National floor |
| Owen | $832,750 | $541,287 | National floor |
| Parke | $832,750 | $541,287 | National floor |
| Perry | $832,750 | $541,287 | National floor |
| Pike | $832,750 | $541,287 | National floor |
| Porter (Chicago metro) | $832,750 | $541,287 | National floor |
| Posey | $832,750 | $541,287 | National floor |
| Pulaski | $832,750 | $541,287 | National floor |
| Putnam | $832,750 | $541,287 | National floor |
| Randolph | $832,750 | $541,287 | National floor |
| Ripley | $832,750 | $541,287 | National floor |
| Rush | $832,750 | $541,287 | National floor |
| St. Joseph (South Bend) | $832,750 | $541,287 | National floor |
| Scott | $832,750 | $541,287 | National floor |
| Shelby (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Spencer | $832,750 | $541,287 | National floor |
| Starke | $832,750 | $541,287 | National floor |
| Steuben | $832,750 | $541,287 | National floor |
| Sullivan | $832,750 | $541,287 | National floor |
| Switzerland | $832,750 | $541,287 | National floor |
| Tippecanoe (Lafayette) | $832,750 | $541,287 | National floor |
| Tipton (Indianapolis metro) | $832,750 | $541,287 | National floor |
| Union | $832,750 | $541,287 | National floor |
| Vanderburgh (Evansville) | $832,750 | $541,287 | National floor |
| Vermillion | $832,750 | $541,287 | National floor |
| Vigo (Terre Haute) | $832,750 | $541,287 | National floor |
| Wabash | $832,750 | $541,287 | National floor |
| Warren | $832,750 | $541,287 | National floor |
| Warrick (Evansville) | $832,750 | $541,287 | National floor |
| Washington | $832,750 | $541,287 | National floor |
| Wayne (Richmond) | $832,750 | $541,287 | National floor |
| Wells | $832,750 | $541,287 | National floor |
| White | $832,750 | $541,287 | National floor |
| Whitley | $832,750 | $541,287 | National floor |
All 92 Indiana counties are at the national floor. Based on HUD’s CY2026 median sale price data, no Indiana county — including the Indianapolis, Fort Wayne, Chicago-metro (Lake/Porter/Newton), and Evansville metro counties — qualifies for an elevated FHA or conforming limit. Always verify your specific county at HUD’s official FHA limit lookup tool, and confirm conforming limits at FHFA’s conforming loan limit page.
Loan Programs Available in Indiana
All major federal mortgage programs are available statewide in Indiana. Here’s how each compares for Indiana buyers:
| Program | Min Down Payment | Min Credit Score | Best For |
|---|---|---|---|
| FHA | 3.5% | 580 | First-time buyers, lower credit scores |
| VA | 0% | 580–620 | Veterans, active duty, surviving spouses |
| USDA | 0% | 640 | Rural Indiana buyers meeting income limits |
| Conventional | 3–20% | 620 | Strong credit, wants PMI cancellation |
| IHCDA First Step | 0% effective | Set by participating lender | First mortgage + 5% non-forgivable down payment assistance |
| IHCDA Next Home | 0–1% effective | Set by participating lender | First mortgage + 2.5–3.5% down payment assistance |
IHCDA Down Payment Assistance Programs
The Indiana Housing and Community Development Authority (IHCDA) offers several down payment assistance options that can be paired with an IHCDA first mortgage. Indiana’s flagship First Step program is structured as a non-forgivable second mortgage, unlike the forgivable down payment assistance loans some other states offer.
| Program | Assistance Amount | Structure | Key Requirements |
|---|---|---|---|
| First Step | 5% of purchase price | Non-forgivable second mortgage; 30-year fixed FHA or Conventional first mortgage | Must be first-time buyer or purchase in a targeted census tract; $250 reservation fee |
| Step Down | None — rate-only program | 30-year fixed FHA or Conventional | Must be first-time buyer or purchase in a targeted census tract; $250 reservation fee |
| Next Home | 2.50% or 3.50% of purchase price | Second mortgage; not limited to first-time buyers | Not to exceed appraised value; FHA or Conventional 30-year fixed |
| Next Step | Refinance only | One-time refinance opportunity for existing IHCDA First Place/First Step borrowers | 30-year fixed FHA or Conventional; $250 reservation fee |
Indiana’s First Step assistance is non-forgivable, unlike some other states’ forgivable DPA programs. The 5% assistance is structured as a second mortgage that must be repaid — confirm current repayment terms, income limits, and purchase price limits, which vary by county, at in.gov/ihcda.
Indiana Property Taxes
Indiana has no state-level property tax. Property tax is assessed and collected at the local level — by counties, townships, and school districts — but Indiana is distinctive for having a constitutional cap: the “circuit breaker” credit limits homestead (owner-occupied) property tax to 1% of gross assessed value, with caps of 2% for other residential/agricultural property and 3% for other real property.
Indiana also offers a Homestead Standard Deduction (lesser of $45,000 or 60% of gross assessed value) plus a Supplemental Homestead Deduction, both applied before the tax rate and circuit breaker cap are calculated.
| Purchase Price | Est. Annual Tax (capped at 1%) | Monthly Escrow |
|---|---|---|
| $200,000 | Up to ~$2,000 | Up to ~$167/mo |
| $300,000 | Up to ~$3,000 | Up to ~$250/mo |
| $400,000 | Up to ~$4,000 | Up to ~$333/mo |
| $500,000 | Up to ~$5,000 | Up to ~$417/mo |
Disabled Veteran Property Tax Deduction: Indiana veterans with a total (100%) VA disability rating, an honorable discharge, at least 90 days of service, and at least 1 year of Indiana residency may deduct 100% of their homestead’s assessed value from property tax. Additional stackable credits of $350 or $250 are available for other wartime-service, age, and disability combinations. Details at the Indiana Department of Veterans Affairs.
Closing Costs in Indiana
Indiana’s closing costs are comparatively simple because the state charges no real estate transfer tax — a meaningful difference from states where a 1%+ transfer tax is a major closing cost line item. Buyer closing costs in Indiana typically run 2–5% of the purchase price (Est.), driven mainly by loan origination fees, title insurance, and prepaid items.
| Fee | Typical Amount | On a $300,000 Purchase |
|---|---|---|
| Real estate transfer tax | None — Indiana charges no state or local transfer tax | $0 |
| Loan origination fee | 0–1% of loan | $0–$3,000 |
| Lender’s title insurance | Based on loan amount | ~$700–$1,300 |
| Owner’s title insurance | Based on purchase price | ~$900–$1,600 |
| Appraisal | Paid upfront or at closing | ~$500–$700 |
| Recording fee | Per document, county-set | ~$25–$150 |
| Homeowner’s insurance (prepaid) | First year premium | ~$900–$1,600 |
No-transfer-tax note: Because Indiana does not charge a real estate transfer tax, a buyer’s total cash to close is generally more predictable and lower than in transfer-tax states, all else equal. Always confirm current fees with your lender and title company before closing.
Indiana Housing Market Overview (2026)
Indiana’s housing market is anchored by the Indianapolis metro, with several smaller regional metros and a substantial rural population across the rest of the state. Home values are generally more affordable than national medians.
| Area | Market Notes |
|---|---|
| Indianapolis-Carmel-Greenwood | Largest metro (population ~2.21 million); median sale price around $258,900 in the city of Indianapolis; anchored by a growing life-sciences and pharmaceutical manufacturing sector including Eli Lilly’s multibillion-dollar LEAP Innovation District in Boone County |
| Fort Wayne | Second-largest metro (population ~584,700); median sale price around $230,100 in the city of Fort Wayne; among the fastest-growing large cities in the Midwest |
| Evansville | Southwestern Indiana (metro population ~273,800); median sale price around $172,400 in the city of Evansville; manufacturing-driven economy anchored by Toyota’s Princeton plant |
| South Bend-Mishawaka | Northern Indiana (metro population ~272,900); median sale price around $187,900 in the city of South Bend; home to the University of Notre Dame and a growing downtown tech and innovation district |
| Rural Indiana (most other counties) | More affordable; broad USDA loan eligibility; all counties at the FHA/conforming national floor |
