fha home loan indiana guide for first-time buyers

Why FHA in Indiana

An FHA mortgage can lower the bar for Hoosier buyers with limited savings. Backed by the Federal Housing Administration, it blends flexible underwriting with steady fixed rates across Indiana. If credit is thin or down payment funds are tight, FHA keeps ownership within reach and payments predictable.

Eligibility

• Credit: 580+ may allow 3.5% down; 500–579 often needs 10%.
• Income: Stable earnings and a DTI near 43%; higher with strong factors.
• Property: Primary residence, FHA appraisal, and safety standards.
• Loan limits: Vary by county; verify current Indiana figures.

Costs and timing

Expect an upfront mortgage insurance premium of 1.75% (commonly financed) plus annual MIP. Sellers can contribute up to 6% toward closing costs. Most purchases close in 30–45 days, and appraisals emphasize livability and repairs. Pre-approval and a clear budget help prevent last-minute surprises.

Next steps

Compare lenders, request a Loan Estimate, and ask about IHCDA assistance. Gather pay stubs, W‑2s, and bank statements, and budget for possible repairs. With clear expectations and patient shopping, you can move from pre-approval to keys smoothly.