Mortgage in Indiana

The Hoosier State is one of the more affordable states in the nation. With a median home price of $161k , you'll find that your dollar stretches much further in Indiana than in some coastal cities. If you're thinking of moving to Indiana, you can see just how much home you'll be able to afford with our Indiana mortgage calculator.

Indiana Mortgage Calculator: See How Much Home You Can Afford!

Whether you're thinking of moving to Indiana or buying another home within the state, there are three primary mortgage types from which you can choose.

• Indiana conventional mortgage: A traditional mortgage is one of the best choices for living in Indiana. Since housing prices are on the lower end, many mortgages are conforming loans, which means that you can get them with as little as 3% down, a credit score of 620, and a debt-to-income ratio of 50% or less. Please note that you'll need to pay private mortgage insurance if you put less than 20% down.
• Indiana FHA mortgage: With lower housing costs, an FHA loan is a fantastic option for those who have a less-than-ideal credit score. This choice requires a credit score of 580 and 3.5% down. If you have a credit score between 500-580, you can still get one of these loans. However, you'll need 10% down.
• Indiana VA mortgage: Veterans have access to mortgages backed by the VA. These loans require 0% down and have no PMI. If you're a veteran, please be sure to check out VA loans at your preferred lender.

Of course, one of the biggest hurdles to homeownership is coming up with the down payment. Fortunately, Indiana has plenty of incentives on this front!

First-Time Homebuyers in Indiana

Offered by the Indiana Housing and Community Development Authority , three programs assist first-time homebuyers!

The First Place mortgage product provides down payment assistance of up to 6% of the purchase price. The 6% in aid is a 30-year fixed-rate FHA loan.

Eligibility Criteria: This offer is subject to income and purchase price limitations. Borrowers must have a minimum credit score of 640 with a debt-to-income ratio below 45%. For those with a ratio between 45% and 50%, the minimum credit score is 680.

The Next Home program provides down payment assistance of up to 3.5% of the purchase price. The 3.5% in aid is a grant, so no repayment is necessary.

Eligibility Criteria: Like First Place, income and purchase price limitations apply. Borrowers must have a minimum credit score of 640 if they have a DTI below 45%. For those with a DTI greater than 45% and less than 50%, a minimum credit score of 680 applies.

This program will save borrowers money on their taxes. It is a Federal income tax credit up to a maximum of $2,000 per year.

Eligibility Criteria: Borrowers must meet income limitations.

Indiana Mortgage Calculator: Homeownership Is Possible!

Thanks to a relatively low cost of living and generous homeownership programs, moving to The Hoosier State is generally more affordable than many other places. If you're interested in living in Indiana, check out how much you'll pay with our Indiana mortgage calculator!