How to Buy a House in Indiana
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$254,931
Closing Costs
$9,941
3.9% of price
Property Tax Rate
0.77%
$1,371/yr median
Days on Market
35
Median
FHA Loan Limit
$472,030
Attorney Required
No
Foreclosure Type
Judicial
Transfer Tax
None
None
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Key Facts About Buying in Indiana
- ✓No transfer tax
- ✓Very affordable housing market
- ✓Judicial foreclosure state
- ✓Indianapolis metro drives majority of market activity
The Home Buying Process in Indiana
Buying a home in Indiana follows a 10-step process. Indiana does not require an attorney at closing, though you may choose to hire one.
1
Check Your Credit Score & Finances
2
Get Pre-Approved for a Mortgage
3
Find a Real Estate Agent
4
Search for Homes & Make an Offer
5
Get a Home Inspection
6
Secure Your Financing
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First-Time Buyer Programs in Indiana
IHCDA Next Home Program
Down payment assistance for buyers
Up to 6% of purchase priceIncome: Varies by county
Cost of Buying a Home in Indiana
| Down Payment (3.5% FHA) | $8,923 |
| Down Payment (20% Conventional) | $50,986 |
| Average Closing Costs | $9,941 |
| Transfer Tax | None |
| Annual Property Tax (est.) | $1,963/yr |
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Legal & Regulatory Details in Indiana
Homestead Exemption
Available
Up to $22,750
Licensing Authority
Indiana Real Estate Commission
Indiana Real Estate Law Overview
| Conveyance Document | Warranty deed |
| Security Instrument | Mortgage |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | No |
| Deficiency Judgment | Conditional |
| Redemption After Sale | No |
| Reinstatement Available | Yes |
| Seller Disclosures | A standard disclosure form is required; it covers known material defects in structural elements and appliances. Sellers must disclose issues like leaks, foundation cracks, pest infestations, zoning disputes and unusual circumstances (e.g., prior meth labs). |
