FHA Loan Requirements, Limits and Approval Tips
How Does LendingTree Get Paid?

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appears on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

2023 FHA Loan Limits in Indiana

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

Loans backed by the Federal Housing Administration (FHA) make homebuying more accessible with lower down payment and more lenient credit score requirements than conventional mortgages. Indiana homebuyers may qualify for an FHA loan amount up to $472,030 in 2023 for a mortgage on a single-family home, with higher limits available for multifamily homes.

Indiana FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ADAMS$472,030$604,400$730,525$907,900$173,000
ALLEN$472,030$604,400$730,525$907,900$202,000
BARTHOLOMEW$472,030$604,400$730,525$907,900$225,000
BENTON$472,030$604,400$730,525$907,900$230,000
BLACKFORD$472,030$604,400$730,525$907,900$89,000
BOONE$472,030$604,400$730,525$907,900$390,000
BROWN$472,030$604,400$730,525$907,900$390,000
CARROLL$472,030$604,400$730,525$907,900$230,000
CASS$472,030$604,400$730,525$907,900$119,000
CLARK$472,030$604,400$730,525$907,900$356,000
CLAY$472,030$604,400$730,525$907,900$126,000
CLINTON$472,030$604,400$730,525$907,900$161,000
CRAWFORD$472,030$604,400$730,525$907,900$143,000
DAVIESS$472,030$604,400$730,525$907,900$120,000
DEARBORN$472,030$604,400$730,525$907,900$320,000
DECATUR$472,030$604,400$730,525$907,900$177,000
DEKALB$472,030$604,400$730,525$907,900$179,000
DELAWARE$472,030$604,400$730,525$907,900$120,000
DUBOIS$472,030$604,400$730,525$907,900$197,000
ELKHART$472,030$604,400$730,525$907,900$210,000
FAYETTE$472,030$604,400$730,525$907,900$96,000
FLOYD$472,030$604,400$730,525$907,900$356,000
FOUNTAIN$472,030$604,400$730,525$907,900$155,000
FRANKLIN$472,030$604,400$730,525$907,900$320,000
FULTON$472,030$604,400$730,525$907,900$141,000
GIBSON$472,030$604,400$730,525$907,900$129,000
GRANT$472,030$604,400$730,525$907,900$110,000
GREENE$472,030$604,400$730,525$907,900$143,000
HAMILTON$472,030$604,400$730,525$907,900$390,000
HANCOCK$472,030$604,400$730,525$907,900$390,000
HARRISON$472,030$604,400$730,525$907,900$356,000
HENDRICKS$472,030$604,400$730,525$907,900$390,000
HENRY$472,030$604,400$730,525$907,900$134,000
HOWARD$472,030$604,400$730,525$907,900$144,000
HUNTINGTON$472,030$604,400$730,525$907,900$147,000
JACKSON$472,030$604,400$730,525$907,900$165,000
JASPER$472,030$604,400$730,525$907,900$386,000
JAY$472,030$604,400$730,525$907,900$107,000
JEFFERSON$472,030$604,400$730,525$907,900$161,000
JENNINGS$472,030$604,400$730,525$907,900$157,000
JOHNSON$472,030$604,400$730,525$907,900$390,000
KNOX$472,030$604,400$730,525$907,900$121,000
KOSCIUSKO$472,030$604,400$730,525$907,900$215,000
LAGRANGE$472,030$604,400$730,525$907,900$235,000
LAKE$472,030$604,400$730,525$907,900$386,000
LAPORTE$472,030$604,400$730,525$907,900$175,000
LAWRENCE$472,030$604,400$730,525$907,900$148,000
MADISON$472,030$604,400$730,525$907,900$390,000
MARION$472,030$604,400$730,525$907,900$390,000
MARSHALL$472,030$604,400$730,525$907,900$182,000
MARTIN$472,030$604,400$730,525$907,900$133,000
MIAMI$472,030$604,400$730,525$907,900$119,000
MONROE$472,030$604,400$730,525$907,900$293,000
MONTGOMERY$472,030$604,400$730,525$907,900$158,000
MORGAN$472,030$604,400$730,525$907,900$390,000
NEWTON$472,030$604,400$730,525$907,900$386,000
NOBLE$472,030$604,400$730,525$907,900$169,000
OHIO$472,030$604,400$730,525$907,900$320,000
ORANGE$472,030$604,400$730,525$907,900$88,000
OWEN$472,030$604,400$730,525$907,900$293,000
PARKE$472,030$604,400$730,525$907,900$126,000
PERRY$472,030$604,400$730,525$907,900$139,000
PIKE$472,030$604,400$730,525$907,900$197,000
PORTER$472,030$604,400$730,525$907,900$386,000
POSEY$472,030$604,400$730,525$907,900$244,000
PULASKI$472,030$604,400$730,525$907,900$133,000
PUTNAM$472,030$604,400$730,525$907,900$390,000
RANDOLPH$472,030$604,400$730,525$907,900$109,000
RIPLEY$472,030$604,400$730,525$907,900$176,000
RUSH$472,030$604,400$730,525$907,900$149,000
SCOTT$472,030$604,400$730,525$907,900$155,000
SHELBY$472,030$604,400$730,525$907,900$390,000
SPENCER$472,030$604,400$730,525$907,900$160,000
ST. JOSEPH$472,030$604,400$730,525$907,900$179,000
STARKE$472,030$604,400$730,525$907,900$156,000
STEUBEN$472,030$604,400$730,525$907,900$190,000
SULLIVAN$472,030$604,400$730,525$907,900$126,000
SWITZERLAND$472,030$604,400$730,525$907,900$120,000
TIPPECANOE$472,030$604,400$730,525$907,900$230,000
TIPTON$472,030$604,400$730,525$907,900$146,000
UNION$472,030$604,400$730,525$907,900$320,000
VANDERBURGH$472,030$604,400$730,525$907,900$244,000
VERMILLION$472,030$604,400$730,525$907,900$126,000
VIGO$472,030$604,400$730,525$907,900$126,000
WABASH$472,030$604,400$730,525$907,900$131,000
WARREN$472,030$604,400$730,525$907,900$230,000
WARRICK$472,030$604,400$730,525$907,900$244,000
WASHINGTON$472,030$604,400$730,525$907,900$356,000
WAYNE$472,030$604,400$730,525$907,900$125,000
WELLS$472,030$604,400$730,525$907,900$173,000
WHITE$472,030$604,400$730,525$907,900$165,000
WHITLEY$472,030$604,400$730,525$907,900$202,000

How are FHA loan limits determined?

Each year, the U.S. Department of Housing and Urban Development (HUD) sets FHA loan limits based on a percentage of the conforming loan limits the Federal Housing Finance Agency (FHFA) publishes for conventional loans.

A “floor” and “ceiling” are established based on median sales prices in counties in every state in the country. The floor is set at 65% of the conforming loan limit and is called the “low-cost limit.” The ceiling is calculated at a maximum of 150% of the conforming limit with a cap of $1,089,300 for a single-family in “high-cost” areas where homes are more expensive.

Indiana has no high-cost counties in 2023, so the maximum loan amount for all counties in the state is $472,030 for a one-unit home. The limit is higher than 2022’s $420,680 maximum, which increased due to higher median home prices in the state the past year.

How to qualify for an FHA loan in Indiana

Indiana FHA loans offer homebuyers with lower credit scores and a low down payment with an alternative to stricter conventional loan requirements. With median house prices capping out at $390,000 in the most expensive areas of Indiana the past 12 months, you won’t have to worry about exceeding the $472,030 FHA loan limit for a single-family home.

To qualify for an FHA mortgage, you’ll need to meet the following FHA loan requirements:

Down payment and credit scores: The 3.5% down payment applies if you have a 580 credit score or higher. The down payment percentage increases with lower credit scores.

You may still be able to qualify with a 500 to 579 credit score if you put at least 10% down.

Debt-to-income (DTI) ratio: Your DTI ratio compares how much you spend monthly to how much you make. Typically, lenders require a DTI at or below 43%, although exceptions are possible with high credit scores and cash reserves.

Mortgage insurance: FHA loans require two types of mortgage insurance. The first is an annual mortgage insurance premium (MIP) equal to 0.45% to 1.05% of your loan amount, which is divided by 12 and added to your monthly mortgage payment. The second is an upfront mortgage insurance premium (UFMIP) of 1.75% of your loan amount, typically added to your loan amount.

Occupancy: If you buy a home and finance it with an FHA loan, you have to live in the home for at least a year. The program does not permit financing on second homes or rental properties.

FHA home appraisal. FHA-approved lenders will order an FHA appraisal to estimate your home’s value and make sure it meets FHA standards.

Buying a multifamily property with an FHA loan

FHA guidelines allow you to buy a multifamily home with a 3.5% down payment and use the rental income to qualify in most cases. Properties with up to four separate living units are allowed as long as you live in one of the units for at least a year. An added bonus: FHA loan limits are higher with each extra unit up to four units total. See the multifamily FHA limits for Indiana below:

Number of units2023 FHA multifamily loan limit
Two$604,400
Three$730,525
Four$907,900

FHA lenders in Indiana

Lender nameLT ratingMinimum FHA credit score
Truist Mortgage4 stars580
Fairway Independent Mortgage3 stars580
PennyMac Mortgage5 stars580
Homebridge Financial Services3 starsNot published
Caliber Home Loans3 stars620

 

Compare FHA Loans for Free

Recommended Reading