FHA Loans in Indiana
The FHA loan limit in Indiana is $472,030 for a single-family home. FHA loans require just 3.5% down payment and accept credit scores as low as 580.
Indiana's FHA loan limit at the baseline level is more than sufficient for the state's housing market, covering virtually all homes in the Indianapolis metro and statewide. FHA is the most popular loan type for first-time buyers in Indiana, with the 3.5% down payment on a $250,000 home amounting to less than $9,000 — an achievable savings goal for many working families. Indiana's housing stock tends to be in good condition for FHA appraisal purposes, with fewer structural concerns than states with older urban housing.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: HUD, Zillow
FHA Loan Limit
$472,030
Min Down Payment
$16,521
3.5%
Est. Monthly Payment
$3,509
PITI + MIP
Min Credit Score
580
for 3.5% down
Monthly Payment Breakdown at FHA Limit
| Home Price | $472,030 |
| Down Payment (3.5%) | $16,521 |
| Loan Amount | $455,509 |
| Monthly Costs | |
| Principal & Interest (6.5%) | $2,879 |
| FHA Mortgage Insurance (MIP) | $209 |
| Property Tax | $303 |
| Homeowners Insurance | $118 |
| Total Monthly Payment | $3,509 |
* Estimated at 6.5% interest rate, 30-year fixed. MIP at 0.55% annual. Property tax at Indiana's average rate of 0.77%. Includes upfront MIP of 1.75% rolled into loan.
FHA Loan Requirements
Credit Score
580+ for 3.5% down payment. 500-579 requires 10% down.
Down Payment
Minimum 3.5% of purchase price. Can be a gift from family.
Debt-to-Income
Maximum 43% DTI ratio (up to 50% with compensating factors).
Property Requirements
Must be primary residence. FHA appraisal required (stricter than conventional).
Employment
2 years of steady employment history. Self-employed need 2 years of tax returns.
Mortgage Insurance
1.75% upfront MIP + 0.55% annual MIP. Required for life of loan (unless refinanced).
FHA vs Conventional in Indiana
| Feature | FHA | Conventional |
|---|---|---|
| Min Down Payment | 3.5% | 3-5% |
| Min Credit Score | 580 | 620 |
| Mortgage Insurance | Life of loan | Until 20% equity |
| Loan Limit (Indiana) | $472,030 | $766,550+ |
| Best For | Lower credit, small savings | Good credit, 20%+ down |
