FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Indiana

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Loans backed by the Federal Housing Administration (FHA) make homebuying more accessible with their lower down payment and more lenient credit score requirements. Indiana homebuyers looking to borrow with an FHA loan can borrow up to $420,680 in 2022 for a mortgage on a single-family home. This loan limit applies to every county in Indiana, but the loan limit increases for multifamily homes.

Indiana FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ADAMS$420,680$538,650$651,050$809,150$137,000
ALLEN$420,680$538,650$651,050$809,150$177,000
BARTHOLOMEW$420,680$538,650$651,050$809,150$201,000
BENTON$420,680$538,650$651,050$809,150$210,000
BLACKFORD$420,680$538,650$651,050$809,150$79,000
BOONE$420,680$538,650$651,050$809,150$347,000
BROWN$420,680$538,650$651,050$809,150$347,000
CARROLL$420,680$538,650$651,050$809,150$210,000
CASS$420,680$538,650$651,050$809,150$108,000
CLARK$420,680$538,650$651,050$809,150$315,000
CLAY$420,680$538,650$651,050$809,150$118,000
CLINTON$420,680$538,650$651,050$809,150$139,000
CRAWFORD$420,680$538,650$651,050$809,150$89,000
DAVIESS$420,680$538,650$651,050$809,150$112,000
DEARBORN$420,680$538,650$651,050$809,150$295,000
DECATUR$420,680$538,650$651,050$809,150$166,000
DEKALB$420,680$538,650$651,050$809,150$170,000
DELAWARE$420,680$538,650$651,050$809,150$102,000
DUBOIS$420,680$538,650$651,050$809,150$179,000
ELKHART$420,680$538,650$651,050$809,150$196,000
FAYETTE$420,680$538,650$651,050$809,150$75,000
FLOYD$420,680$538,650$651,050$809,150$315,000
FOUNTAIN$420,680$538,650$651,050$809,150$127,000
FRANKLIN$420,680$538,650$651,050$809,150$295,000
FULTON$420,680$538,650$651,050$809,150$110,000
GIBSON$420,680$538,650$651,050$809,150$110,000
GRANT$420,680$538,650$651,050$809,150$110,000
GREENE$420,680$538,650$651,050$809,150$114,000
HAMILTON$420,680$538,650$651,050$809,150$347,000
HANCOCK$420,680$538,650$651,050$809,150$347,000
HARRISON$420,680$538,650$651,050$809,150$315,000
HENDRICKS$420,680$538,650$651,050$809,150$347,000
HENRY$420,680$538,650$651,050$809,150$100,000
HOWARD$420,680$538,650$651,050$809,150$130,000
HUNTINGTON$420,680$538,650$651,050$809,150$143,000
JACKSON$420,680$538,650$651,050$809,150$173,000
JASPER$420,680$538,650$651,050$809,150$360,000
JAY$420,680$538,650$651,050$809,150$93,000
JEFFERSON$420,680$538,650$651,050$809,150$135,000
JENNINGS$420,680$538,650$651,050$809,150$125,000
JOHNSON$420,680$538,650$651,050$809,150$347,000
KNOX$420,680$538,650$651,050$809,150$115,000
KOSCIUSKO$420,680$538,650$651,050$809,150$199,000
LAGRANGE$420,680$538,650$651,050$809,150$195,000
LAKE$420,680$538,650$651,050$809,150$360,000
LAPORTE$420,680$538,650$651,050$809,150$159,000
LAWRENCE$420,680$538,650$651,050$809,150$118,000
MADISON$420,680$538,650$651,050$809,150$347,000
MARION$420,680$538,650$651,050$809,150$347,000
MARSHALL$420,680$538,650$651,050$809,150$174,000
MARTIN$420,680$538,650$651,050$809,150$78,000
MIAMI$420,680$538,650$651,050$809,150$105,000
MONROE$420,680$538,650$651,050$809,150$255,000
MONTGOMERY$420,680$538,650$651,050$809,150$164,000
MORGAN$420,680$538,650$651,050$809,150$347,000
NEWTON$420,680$538,650$651,050$809,150$360,000
NOBLE$420,680$538,650$651,050$809,150$150,000
OHIO$420,680$538,650$651,050$809,150$295,000
ORANGE$420,680$538,650$651,050$809,150$80,000
OWEN$420,680$538,650$651,050$809,150$255,000
PARKE$420,680$538,650$651,050$809,150$118,000
PERRY$420,680$538,650$651,050$809,150$129,000
PIKE$420,680$538,650$651,050$809,150$179,000
PORTER$420,680$538,650$651,050$809,150$360,000
POSEY$420,680$538,650$651,050$809,150$221,000
PULASKI$420,680$538,650$651,050$809,150$125,000
PUTNAM$420,680$538,650$651,050$809,150$347,000
RANDOLPH$420,680$538,650$651,050$809,150$88,000
RIPLEY$420,680$538,650$651,050$809,150$155,000
RUSH$420,680$538,650$651,050$809,150$127,000
SCOTT$420,680$538,650$651,050$809,150$147,000
SHELBY$420,680$538,650$651,050$809,150$347,000
SPENCER$420,680$538,650$651,050$809,150$147,000
ST. JOSEPH$420,680$538,650$651,050$809,150$162,000
STARKE$420,680$538,650$651,050$809,150$136,000
STEUBEN$420,680$538,650$651,050$809,150$166,000
SULLIVAN$420,680$538,650$651,050$809,150$118,000
SWITZERLAND$420,680$538,650$651,050$809,150$99,000
TIPPECANOE$420,680$538,650$651,050$809,150$210,000
TIPTON$420,680$538,650$651,050$809,150$125,000
UNION$420,680$538,650$651,050$809,150$295,000
VANDERBURGH$420,680$538,650$651,050$809,150$221,000
VERMILLION$420,680$538,650$651,050$809,150$118,000
VIGO$420,680$538,650$651,050$809,150$118,000
WABASH$420,680$538,650$651,050$809,150$118,000
WARREN$420,680$538,650$651,050$809,150$210,000
WARRICK$420,680$538,650$651,050$809,150$221,000
WASHINGTON$420,680$538,650$651,050$809,150$315,000
WAYNE$420,680$538,650$651,050$809,150$117,000
WELLS$420,680$538,650$651,050$809,150$171,000
WHITE$420,680$538,650$651,050$809,150$156,000
WHITLEY$420,680$538,650$651,050$809,150$177,000

How are FHA loan limits determined?

Each year, the Federal Housing Finance Agency (FHFA) calculates the conforming loan limits—Freddie Mac and Fannie Mae backed loans. These are what are called conventional loan limits, and the numbers are based on the previous year’s average home sales price. Loan limits are determined for each county in the U.S. as well as additional areas such as Guam and the U.S. Virgin Islands.

To determine FHA loan limits, the U.S. Department of Housing and Urban Development (HUD) takes 65% of the conforming loan limit for the lowest FHA limit, known as the “floor,” and 150% for the highest loan limit, known as the “ceiling.” For 2022, the floor is $420,680 and the ceiling is $970,800. Indiana’s counties all have the lowest FHA loan limit.

Loan limits can change annually. The 2022 limits reflect the increase in average national home price over the last year.

How to qualify for an FHA loan in Indiana

Indiana FHA loans offer homebuyers with lower credit scores and less money available for down payments (who likely couldn’t meet conventional loan requirements) an opportunity to qualify for a mortgage. For those new to homeownership, check out Indiana’s first-time homebuyer programs for down payment assistance, mortgage credit certificates and more.

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

A mortgage amount under the FHA loan limit: You can’t borrow more than the area’s FHA limit. For homes above the limit, you could make up the difference with a larger down payment.

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

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

A debt-to-income (DTI) ratio of 43% or less: The DTI is a ratio lenders calculate to help determine if you can afford a mortgage based on your monthly debt spending. Typically lenders require a DTI below 43%.  

An FHA home appraisal: An FHA appraisal is required before you close on an FHA loan.

Mortgage insurance: FHA loans require two types of mortgage insurance: the annual mortgage insurance premium (MIP) at 0.45% to 1.05% of your loan amount and upfront mortgage insurance premium (UFMIP) at 1.75% of your loan amount. Insurance costs are typically financed into the mortgage.

Occupancy: FHA loans require borrowers to live in the home for at least a year if the home is purchased with an FHA loan. The program does not permit financing on second homes or rental properties.

Buying a multifamily property with an FHA loan

The same FHA requirements—including a 3.5% down payment—apply to buying multifamily homes. 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.

FHA lenders in Indiana

Here are five highly rated mortgage lenders available in Indiana. Click on the links to learn more.

Lender nameLT ratingMinimum FHA credit score
AmeriSave8/10600
Lower Mortgage10/10580
Rocket Mortgage9.5/10580
PennyMac Mortgage9/10620
Guild Mortgage9/10540

 

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