Indiana FHA Loans –  Requirements and Loan Limits for 2024 – Indiana FHA Lenders

indiana fha lenders

Indiana home buyers who need a small down payment or have poor credit scores may be able to purchase a home with an Indiana FHA loan. There are many FHA lenders in Indiana who offer FHA loans, but not all of them participate in all of the FHA loan options available.

We will take you through the Indiana FHA loan requirements, the various FHA loan programs, detail what is needed to qualify, then help you to get pre-qualified.

If you already know that an FHA loan is right for you, then let us help you to connect with an Indiana FHA lender whether you live in Indianapolis, Fort Wayne, Evansville, South Bend, or anywhere else.

Speak with someone about your FHA loan options

Indiana Home Buying Statistics

If you are thinking about buying a home in Indiana, these home buying statistics may be interesting and relevant to you.

Population = 6,833,000
Number of Housing Units = 2,977,000
Percent of Housing Units that are Owner Occupied = 69.9%
Average Home Value = $188,500
Average Mortgage Payment = $1,450
Average commute time to work = 23.9 minutes

Top Indiana Cities by Population
Indianapolis – 889,922
Fort Wayne – 267,927
Evansville – 115,749
South Bend – 103,110
Fishers – 101,966

*References (US CensusIndiana Demographics)

Indiana FHA Loan Requirements for 2024

These are the basic FHA loan requirements for this year. All of these must be met to be approved for an FHA loan. If you are not positive on whether you meet these standards or have questions, an FHA lender can help.

  • Down payment of 3.5% or 10% if your credit score is below 580
  • 2-year employment history with some exceptions allowed
  • Fully document your income for the past two years
  • Minimum FICO score requirement of 500 – down payment will vary
  • Mortgage Insurance Premium (MIP) is required for every FHA loan
  • Maximum debt to income ratio of 43% with exceptions up to 56%
  • The home must be your primary residence
  • No bankruptcies or foreclosures in the past two years

Indiana FHA Loan Benefits

These are the benefits of an FHA loan versus a conventional loan:

  • Lower credit scores permitted
  • Lower down payment requirement
  • FHA interest rates are lower than conventional rates
  • Gift funds allowed
  • Seller closing cost contributions are allowed
  • FHA loans are assumable
  • Co-signers allowed
  • Higher debt to income ratios permitted

Indiana FHA Down Payment Requirements

The down payment requirements for an FHA loan is the same in every state. The minimum requirement for an FHA loan is 3.5% of the purchase price. However, if your credit score is below 580, then the down payment requirement will be 10%.

If you do not have the down payment needed, you can also use gift funds from a relative.

Indiana FHA Down Payment Assistance

There are various down payment assistance programs in every state. Below is a list of just a few down payment assistance programs that may be available to you in Indiana. Home buyers will need to contact, and arrange for these programs independently. Lenders will accept the funds from these programs for your down payment.

Gary Indiana Home Buyer Assistance Program

Lake County Home Buyer Assistance Program

Indiana Housing Authority Home Buyer Assistance Program

We also can help you with lender provided down payment assistance. This is a much easier process because the lender can help with your down payment and the mortgage at the same time. If you are interested in speaking with someone, then contact us here.

Top Indiana FHA lenders

These lenders are just a few options for you to consider. Please note that each lender is different and it is possible that none of these options are best for you depending upon your scenario.

  1. Carrington Mortgage ServicesContact
  2. Bank of England IndianaContact
  3. First Option MortgageContact
  4. Quicken LoansContact
  5. South River Mortgage of IndianaContact
  6. Somerville BankContact

Let us help you to find the best FHA lender in your area by sharing your needs with us. No credit report will be pulled and we can connect you with the best option.

Indiana FHA Loan Limits

Every county in the United States has specific maximum loan limits that are set for single family homes, as well as 2-4 unit properties. The limits are set based upon the average home sales value in that county. The base FHA loan limit for single family residences in Indiana for most counties is $498,257.

It seems that within the state of Indiana, every county has the same FHA loan limit. The only difference will be when you increase the number of units.

These loan limits are changed at the end of each year. We will update this chart for your reference in December for the following year.

County Name Single Family 2 Units 3 Units 4 Units
ADAMS $498,257 $637,950 $771,125 $958,350
ALLEN $498,257 $637,950 $771,125 $958,350
BARTHOLOMEW $498,257 $637,950 $771,125 $958,350
BENTON $498,257 $637,950 $771,125 $958,350
BLACKFORD $498,257 $637,950 $771,125 $958,350
BOONE $498,257 $637,950 $771,125 $958,350
BROWN $498,257 $637,950 $771,125 $958,350
CARROLL $498,257 $637,950 $771,125 $958,350
CASS $498,257 $637,950 $771,125 $958,350
CLARK $498,257 $637,950 $771,125 $958,350
CLAY $498,257 $637,950 $771,125 $958,350
CLINTON $498,257 $637,950 $771,125 $958,350
CRAWFORD $498,257 $637,950 $771,125 $958,350
DAVIESS $498,257 $637,950 $771,125 $958,350
DEARBORN $498,257 $637,950 $771,125 $958,350
DECATUR $498,257 $637,950 $771,125 $958,350
DEKALB $498,257 $637,950 $771,125 $958,350
DELAWARE $498,257 $637,950 $771,125 $958,350
DUBOIS $498,257 $637,950 $771,125 $958,350
ELKHART $498,257 $637,950 $771,125 $958,350
FAYETTE $498,257 $637,950 $771,125 $958,350
FLOYD $498,257 $637,950 $771,125 $958,350
FOUNTAIN $498,257 $637,950 $771,125 $958,350
FRANKLIN $498,257 $637,950 $771,125 $958,350
FULTON $498,257 $637,950 $771,125 $958,350
GIBSON $498,257 $637,950 $771,125 $958,350
GRANT $498,257 $637,950 $771,125 $958,350
GREENE $498,257 $637,950 $771,125 $958,350
HAMILTON $498,257 $637,950 $771,125 $958,350
HANCOCK $498,257 $637,950 $771,125 $958,350
HARRISON $498,257 $637,950 $771,125 $958,350
HENDRICKS $498,257 $637,950 $771,125 $958,350
HENRY $498,257 $637,950 $771,125 $958,350
HOWARD $498,257 $637,950 $771,125 $958,350
HUNTINGTON $498,257 $637,950 $771,125 $958,350
JACKSON $498,257 $637,950 $771,125 $958,350
JASPER $498,257 $637,950 $771,125 $958,350
JAY $498,257 $637,950 $771,125 $958,350
JEFFERSON $498,257 $637,950 $771,125 $958,350
JENNINGS $498,257 $637,950 $771,125 $958,350
JOHNSON $498,257 $637,950 $771,125 $958,350
KNOX $498,257 $637,950 $771,125 $958,350
KOSCIUSKO $498,257 $637,950 $771,125 $958,350
LAGRANGE $498,257 $637,950 $771,125 $958,350
LAKE $498,257 $637,950 $771,125 $958,350
LAPORTE $498,257 $637,950 $771,125 $958,350
LAWRENCE $498,257 $637,950 $771,125 $958,350
MADISON $498,257 $637,950 $771,125 $958,350
MARION $498,257 $637,950 $771,125 $958,350
MARSHALL $498,257 $637,950 $771,125 $958,350
MARTIN $498,257 $637,950 $771,125 $958,350
MIAMI $498,257 $637,950 $771,125 $958,350
MONROE $498,257 $637,950 $771,125 $958,350
MONTGOMERY $498,257 $637,950 $771,125 $958,350
MORGAN $498,257 $637,950 $771,125 $958,350
NEWTON $498,257 $637,950 $771,125 $958,350
NOBLE $498,257 $637,950 $771,125 $958,350
OHIO $498,257 $637,950 $771,125 $958,350
ORANGE $498,257 $637,950 $771,125 $958,350
OWEN $498,257 $637,950 $771,125 $958,350
PARKE $498,257 $637,950 $771,125 $958,350
PERRY $498,257 $637,950 $771,125 $958,350
PIKE $498,257 $637,950 $771,125 $958,350
PORTER $498,257 $637,950 $771,125 $958,350
POSEY $498,257 $637,950 $771,125 $958,350
PULASKI $498,257 $637,950 $771,125 $958,350
PUTNAM $498,257 $637,950 $771,125 $958,350
RANDOLPH $498,257 $637,950 $771,125 $958,350
RIPLEY $498,257 $637,950 $771,125 $958,350
RUSH $498,257 $637,950 $771,125 $958,350
SCOTT $498,257 $637,950 $771,125 $958,350
SHELBY $498,257 $637,950 $771,125 $958,350
SPENCER $498,257 $637,950 $771,125 $958,350
ST. JOSEPH $498,257 $637,950 $771,125 $958,350
STARKE $498,257 $637,950 $771,125 $958,350
STEUBEN $498,257 $637,950 $771,125 $958,350
SULLIVAN $498,257 $637,950 $771,125 $958,350
SWITZERLAND $498,257 $637,950 $771,125 $958,350
TIPPECANOE $498,257 $637,950 $771,125 $958,350
TIPTON $498,257 $637,950 $771,125 $958,350
UNION $498,257 $637,950 $771,125 $958,350
VANDERBURGH $498,257 $637,950 $771,125 $958,350
VERMILLION $498,257 $637,950 $771,125 $958,350
VIGO $498,257 $637,950 $771,125 $958,350
WABASH $498,257 $637,950 $771,125 $958,350
WARREN $498,257 $637,950 $771,125 $958,350
WARRICK $498,257 $637,950 $771,125 $958,350
WASHINGTON $498,257 $637,950 $771,125 $958,350
WAYNE $498,257 $637,950 $771,125 $958,350
WELLS $498,257 $637,950 $771,125 $958,350
WHITE $498,257 $637,950 $771,125 $958,350
WHITLEY $498,257 $637,950 $771,125 $958,350

Types of FHA Loans in Indiana

There are various type of FHA loans available. Some are for purchases and other FHA loans are for refinancing. Regardless of which option you choose, the most important thing to remember is the home must be your primary residence.

FHA 203k Loans in Indiana

FHA 203k loans are a great program which will allow you to borrow the money needed to purchase the home plus additional funds needed to rehabilitate or remodel the home. This is a great way to purchase a home that may not be perfect, but with this program you can make it as close to perfect as possible.

You can make major changes like remodeling the kitchen and bathrooms, or just simple things like refinishing the floors and painting.

If you would like to fully understand how this program works, we suggest reading our article on FHA 203k loans.

FHA Streamline Refinance in Indiana

The FHA streamline refinance program is available to existing homeowners who would like to refinance for a lower rate while eliminating some of the refinance costs such as an appraisal. Your current mortgage must be an FHA loan and you must also have a perfect mortgage payment history over the past 12 months with no missed or late payments.

There will be no income or employment check with this program either.  You may also get a discount on the mortgage insurance premium which is another advantage.

For more information, please read our article on the FHA streamline refinance.

FHA Construction Loans in Indiana

You may be interested in building your home in Indiana rather than purchasing a pre-existing home. You may qualify for the FHA One Time Close Construction Loan which will allow you to purchase a lot and also build your dream home all with just 3.5% down.

The loan will cover the cost of the lot, your architect and engineering, permits and the complete cost of the build. If you already own your lot, the equity can be used towards the down payment.

This is one of the most affordable ways to build your dream home. Although FHA guidelines permit credit scores down to 500, you can expect the requirements for the construction loan to be much higher.

The first step is to see how much you can get approved for. Then, you will need to find a builder and possibly an architect if you are looking for a custom home. Be prepared for a lot of work for you as the Indiana homebuyer.

To start the process, contact us here to see how much you can get approved for and also to answer any of your questions.

Indiana FHA Loan Pre-Approval Process

If you are looking for an FHA loan, there is an optimal process you should follow to get pre-approved.

  1. The first step is to make sure you have the minimum down payment needed to qualify
  2. check your credit and try to cleanup anything that is pulling down your scores
  3. Get a copy of your tax returns for the past two years
  4. Get copies of your pay stubs for the past month
  5. Get copies of your last two months’ bank statements
  6. Speak to an FHA lender about your loan scenario

Speak to a lender early in the process because they can identify opportunities to help with your FHA approval. This should be done months before you start looking for a home. Read more about how to get pre-approved for an FHA loan.

What to Look for in an FHA Lender

We take a few things into consideration when looking at which Indiana FHA lenders we work with. Some of these also may be, or should be very important to you as you continue shopping for an FHA loan.

A good FHA lender will:

  • Allow for credit scores as low as 500
  • Provide FHA 203k loans
  • Offer competitive rates and fees
  • Have a great processing and underwriting team
  • Work closely with you throughout the loan process
  • Communicate well and will provide you with updates along the way

Indiana FHA Loan Calculator

This FHA loan calculator will give you an idea of what you can expect your payment to be. There are many variables such as taxes and interest rates. If you are not sure how to use the calculator or want to speak with someone, then just contact us here.

FHA Calculator
Purchase Price
Interest Rate
Annual Property Taxes
Annual Homeowner's
Insurance
Credit Score Above 580
Term of Loan
FHA Payment Amount
$0
Monthly Principal &
Interest
FHA Monthly Mortgage
Insurance
Monthly Taxes and
Insurance
Loan
Amount
Down Payment
Amount
Upfront FHA Mortgage
Insurance

Frequently Asked FHA Questions

Can I get an FHA loan with a bankruptcy?
In general, you will need to wait two years before applying for an FHA loan after a bankruptcy. However, there are some exceptions which may allow you to apply sooner. Read our article on the bankruptcy waiting period.

Are all FHA lenders the same?
Not all lenders who offer FHA loans are the same. They all do not offer all of the FHA programs and their rates and fees may also vary. Most importantly, the individuals who help to process and underwrite your loan will have a huge impact on your FHA loan experience.

Can I use gift funds for an FHA loan?
FHA loans do allow for gift funds to cover your down payment as well as your closing costs. The gift funds must come from a relative or a close friend as approved by the lender. You will need to provide the lender with a gift letter that is signed by the donor.

Do I need an appraisal for an FHA loan?
The FHA does require an appraisal and inspection before your loan can be approved. The FHA inspection has clear guidelines on what needs to be repaired before your loan can close. They want to make sure home buyers are moving into a home that is safe and operational.

Can I get an FHA loan for an investment property?
FHA loans are for primary residences only and if your goal is to purchase an investment property, you cannot use FHA insured financing for that purchase. However, if you are currently living in a home that is financed with an FHA loan, you can move to a new home and keep the current home as an investment.

We have FHA lenders who can help with your FHA loan in these states:  Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Indiana, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming