The 2026 Indiana Home Loan Guide
Every Indiana home loan compared in one place, so you can see which one fits your credit and down payment, and where IHCDA can help with the down payment. Read it here or get it emailed.
Which Indiana home loan is right for you?
There is no single best mortgage. There is the one that fits your credit, your down payment, and your goals. Most Indiana buyers land on one of five paths, and the right choice usually comes down to your credit score and how much you have to put down. Here is the plain-English map.
| Loan | Min down | Min credit | Best for |
|---|---|---|---|
| VA | 0% | 580–620 | Veterans, active duty |
| USDA | 0% | 640 | Eligible rural areas |
| FHA | 3.5% | 580 | Lower credit, flexible ratios |
| Conventional | 3% | 620 | Stronger credit; drops PMI at 20% |
| Jumbo | 10%+ | 700+ | Above the conforming limit |
Don't have the down payment? There's help.
Indiana runs its help through IHCDA, the state housing authority. First Step gives 5% of the price and Next Home gives 2.5% or 3.5%, both as second mortgages you repay when you sell or refinance. These are not grants and not forgivable, a point many websites get wrong. First Step is for first-time buyers; Next Home also serves repeat buyers. Lenders typically look for around a 640 credit score. And Indiana charges no state transfer tax. First-time buyers in Indiana can see the full IHCDA menu, the county income limits, and who qualifies.
What credit score do you need?
Lower than most people assume. FHA and VA open at 580, USDA at 640, conventional at 620, and jumbo usually wants 700+. A 600 score has real options today, and a focused 60–90 days can lift you a full tier and cut your rate. Your score sets your menu; it rarely closes the door.
What counts as a jumbo loan?
A jumbo loan is any mortgage above the conforming limit the FHFA sets each year. The 2026 baseline is $832,750, and in Indiana it applies in every one of the 92 counties, because no Indiana county qualifies as high-cost. Above that limit the loan cannot be sold to Fannie Mae or Freddie Mac, so it is underwritten to stricter standards, typically a larger down payment and a 700+ score. Given Indiana's affordable prices, most buyers stay well under the limit; it comes up in the Carmel and Fishers markets north of Indianapolis.
Figures reflect current 2026 guidelines; the conforming limit and program terms change — confirm current numbers with a specialist. Sources: FHFA, HUD, VA, Fannie Mae, Freddie Mac. This is not a commitment to lend.
Frequently asked questions
What types of home loans are available in Indiana?
Five main paths: VA (0% down for veterans), USDA (0% down in eligible rural areas, and much of Indiana qualifies), FHA (3.5% down, 580 credit), conventional (3% down, 620 credit, drops PMI at 20% equity), and jumbo (above the $832,750 conforming baseline, which applies in every Indiana county). IHCDA's First Step and Next Home assistance can layer onto most of them, as repayable seconds.
What credit score do you need to buy a house in Indiana?
It depends on the loan. FHA and VA open at 580, USDA at 640, conventional at 620, and jumbo usually wants 700+. A 600 score has real options, and a focused 60–90 days of credit work can move you a full tier and lower your rate.
What is a jumbo loan?
A jumbo loan is any mortgage above the conforming loan limit the FHFA sets each year. The 2026 baseline is $832,750, and it applies in every Indiana county since none is high-cost. Above that limit the loan can't be sold to Fannie Mae or Freddie Mac, so it's underwritten to stricter standards, typically 10%+ down and a 700+ score.