How much down payment do I need to buy a house in Indiana?

You can buy a home in Indiana with as little as 0% down (VA/USDA), 3% down ($6,750 conventional), or 3.5% down ($7,875 FHA) on the median-priced home of $225,000.

What income do I need to buy a home in Indiana?

To afford the median-priced home in Indiana ($225,000) with a 30-year mortgage at 6.1%, you typically need a household income of approximately $55,193 per year (using the 28% rule). The median income in Indiana is $58,235.

What is the FHA loan limit in Indiana for 2026?

The FHA loan limit in Indiana for 2026 is $472,030. This means first-time buyers using FHA loans can finance up to this amount with just 3.5% down payment.

First-Time Home Buyer Indiana 2026

Q: What first-time home buyer programs are available in Indiana?

Indiana offers 2 major first-time buyer programs including IHCDA Next Home, Indiana MCC. These programs provide grants, forgivable loans, and below-market rates to help with down payment and closing costs.

Your complete guide to buying your first home in Indiana. 2+ down payment assistance programs, FHA loans from 5.9%, and step-by-step guidance.

Median Price

$225,000

Min Down (FHA)

$7,875

DPA Programs

Best Rate

5.9%

Check My Indiana Eligibility

What First-Time Buyer Programs Are Available in Indiana?

Indiana offers 2 major first-time home buyer assistance programs. These include IHCDA Next Home, Indiana MCC. Programs provide up to 3.5% of loan in down payment assistance through grants, forgivable loans, and below-market interest rates.

How Much Do I Need to Buy in Indiana?

You can buy a home in Indiana with as little as $0 down. VA and USDA loans require zero down payment. FHA loans need just 3.5% ($$7,875), and conventional loans start at 3% ($$6,750) on the median price of $225,000.

Loan Type	Down Payment	$ Amount	Monthly P&I	Min Credit
VA Loan	0%	$0	$1,327	620
USDA Loan	0%	$0	$1,363	640
Conventional 3%	3%	$6,750	$1,323	620
FHA Loan	3.5%	$7,875	$1,288	580
Conventional 20%	20%	$45,000	$1,091	620

Indiana Down Payment Assistance Programs

IHCDA Next Home

DPA up to 3.5% for FHA or conventional

Up to 3.5% of loanforgivable

Indiana MCC

Mortgage Credit Certificate for tax savings

Up to 25% of interestlow interest

5 Steps to Buy Your First Home in Indiana

To buy your first home in Indiana, start by checking your credit score, getting pre-approved, and researching DPA programs. The entire process typically takes 30-60 days from pre-approval to closing. Here's your step-by-step roadmap.

Check Your Credit & Finances

Review your credit score (aim for 620+), calculate your debt-to-income ratio, and save for closing costs. In Indiana, you may need as little as $7,875 for an FHA down payment.

Get Pre-Approved

Compare rates from at least 3 lenders. Current Indiana rates: 6.1% (30-year), 5.9% (FHA). Pre-approval shows sellers you're serious and locks your rate.

Apply for Indiana DPA Programs

Indiana has 2+ DPA programs. The IHCDA Next Home offers up to 3.5% of loan. Apply early—funding can be limited.

House Hunt & Make an Offer

Popular cities in Indiana: Indianapolis, Fort Wayne, Evansville, South Bend, Carmel. Median price is $225,000 (+6.2% YoY). Work with a local real estate agent who knows the market.

Close on Your New Home

Closing costs in Indiana typically run 2-5% of the purchase price ($6,750-$11,250). Some DPA programs also cover closing costs.

Start Your Indiana Home Buying Journey

Get pre-approved in minutes and see what you qualify for.

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Indiana First-Time Buyer FAQ

What first-time home buyer programs are available in Indiana?

Indiana offers 2 major programs: IHCDA Next Home, Indiana MCC. These provide grants, forgivable loans, and below-market rates for down payment and closing cost assistance.