Indiana conventional mortgage: limits, down payment math and the state rules

On Indiana’s rough $240,000 median, a conventional loan with 5% down means $12,000 at closing and about $1,750 a month with taxes and mortgage insurance; with 20% down, $48,000 and about $1,380. Everything below is worked on those numbers and on the state rules that change them.

The Indiana conforming limit and where jumbo starts

A conventional loan is conforming when it fits Fannie Mae and Freddie Mac’s limit and their guidelines; in Indiana that limit is $832,750 for a one-unit home in 2026. With 20% down, a purchase up to about $1,040,938 stays conforming; with 5% down, up to about $876,579. The state’s $240,000 median leaves ample room, so a typical purchase here is conforming unless the buyer is in a premium neighborhood. Every Indiana county is in the table below; see conforming loan limits and jumbo loans.

2026 conforming loan limits by county in Indiana

FHFA’s 2026 county list gives every Indiana county the same one-unit limit, $832,750, and the same multi-unit limits ($1,066,250 / $1,288,800 / $1,601,750). Nothing in the state is designated high-cost, so a loan above $832,750 is jumbo anywhere in Indiana.

Source: FHFA, Conforming Loan Limit Values for 2026 (county list, mortgages acquired in calendar year 2026). Limits are for Fannie Mae and Freddie Mac loans; FHA and VA use their own county figures.

Monthly cost on a $240,000 Indiana home

Each row is the same $240,000 Indiana home at 6.5% for 30 years — only the down payment changes. PMI is an illustrative market rate for that down payment; property tax is the state’s rough 0.83% effective rate divided by twelve.

The 3% row assumes a program such as HomeReady or Home Possible; income limits apply. Compare with FHA at 3.5% down on the FHA vs conventional guide.

The PMI timeline on a Indiana purchase

Under the Homeowners Protection Act, the 80% request point and the 78% automatic point are measured against the original value. The scheduled payments on the $228,000 5% down loan reach 80% after about 10 years and 4 months, on the $216,000 10% down loan after about 7 years and 11 months. Fannie Mae and Freddie Mac servicers also cancel on current value — typically 75% LTV after two years or 80% after five — which in a rising Indiana market can come sooner.

What Indiana adds at closing

Indiana closings are run by title insurance agencies and their escrow departments, and no statute requires an attorney at the table. Lawyers prepare deeds and review documents when a party hires one, but the title agent handles the settlement statement, disbursement and recording. Indiana is a wet-funding state and its good-funds law (Indiana Code 27-7-3.7) requires wired or otherwise collected funds before a title agent may disburse; buyer-side costs typically run about 2 percent to 3 percent of the price.

Indiana charges no mortgage tax, intangible tax or documentary stamp on the note, and no transfer tax on the deed. The county recorder collects a flat statutory recording fee per mortgage (currently a few tens of dollars, set by Indiana Code 36-2-7-10) plus a small fee for the sales disclosure form that accompanies every conveyance. The absence of both taxes keeps Indiana among the cheapest states to record a lien. Indiana has no real estate transfer tax; counties charge only recording fees and a small sales disclosure fee, keeping government closing costs among the lowest in the country.

Indiana buyer closing costs typically total 2% to 3% of the price, almost entirely lender, title and prepaid items; property taxes are paid a year in arrears, which affects prorations and escrow setup.

Indiana rules that touch a conventional loan

Prepayment. Indiana limits prepayment penalties on home loans through its Home Loan Practices law (Indiana Code 24-9-3) and bars them entirely on high-cost home loans, while the Uniform Consumer Credit Code (Indiana Code 24-4.5-3-209) sets the general right to prepay consumer credit. Federal QM rules ban prepayment penalties on most conventional loans anyway; the Loan Estimate says yes or no on page one.

Spouses and title. Indiana is a separate-property state, and a married couple taking title together holds it as tenants by the entirety unless the deed says otherwise (Indiana Code 32-17-3-1).

Homestead. Indiana’s creditor homestead exemption is modest: a fixed dollar amount of equity in a residence (set in Indiana Code 34-55-10-2 and adjusted every six years, currently in the low twenty-thousands), which is why Chapter 7 filers with real equity often lose it.

The complete state layer — licensing, predatory-lending limits, disclosures, foreclosure — is on mortgage laws in Indiana.

Frequently asked questions

What is the conforming loan limit in Indiana for 2026?

$832,750 for a one-unit home in every one of Indiana’s 92 counties: FHFA designates no high-cost area in the state for 2026. Above that figure the loan is jumbo. On the state’s $240,000 median, a 20% down loan of $192,000 is well inside the limit.

When can I cancel PMI on a conventional loan in Indiana?

Under the federal Homeowners Protection Act you may request cancellation when the balance reaches 80% of the original value and the servicer must cancel automatically at 78%. On a $240,000 Indiana home bought with 5% down at an illustrative 6.5%, scheduled payments reach 80% after about 10 years and 4 months and 78% after about 11 years and 3 months; extra principal or a new appraisal showing appreciation can move the date up.

Does Indiana add anything to a conventional loan’s closing costs?

Indiana charges no mortgage tax, intangible tax or documentary stamp on the note, and no transfer tax on the deed. Indiana has no real estate transfer tax; counties charge only recording fees and a small sales disclosure fee, keeping government closing costs among the lowest in the country. Indiana buyer closing costs typically total 2% to 3% of the price, almost entirely lender, title and prepaid items; property taxes are paid a year in arrears, which affects prorations and escrow setup.

Related: Cash-out refinance: limits, costs and when it is the wrong tool, Rate-and-term refinance: when it pays, how to compute the break-even, DSCR loans vs conventional for investment property: qualify on rent or on income, Seller concessions limits: how much a seller can pay toward your closing costs. First home in Indiana: programs and assistance. Hub: Conventional loan.