FHA Loan Products

Helping more borrowers who may not qualify for conventional financing achieve the dream of homeownership. Check with us to see if you qualify

• 580+ FICO, Up to 97.75% LTV
• 550-579 FICO, Up to 90% LTV
• Eligible for primary purchase, rate/term and cash-out refinances
• Available on single- and multi-wide manufactured homes
• Jumbo starting $1 over conforming loan limit up to FHA Mortgage Limit

Refinancing an FHA loan you already have

If you already have an FHA loan, the FHA Streamline refinance is usually the simplest way to lower your rate. It typically requires no new appraisal, which removes both a cost and one of the most common sources of delay. Credit requirements are more relaxed than a standard refinance, generally starting around 580, and it works on condos, PUDs, and manufactured homes.

The tradeoff is that a Streamline can only improve the FHA loan you already have. It cannot be used to take cash out. If you need cash from your equity, that is a different refinance and worth a separate conversation.

Buying a HUD-owned home

When an FHA-insured home goes through foreclosure, it becomes HUD-owned and is listed for sale. Two things make these worth knowing about.

• Some HUD-owned homes may be eligible for a $100 down payment when financed with FHA, rather than the usual 3.5%.
• Repairs can often be handled through an escrow holdback, up to $10,000, so a home that needs work is not automatically off the table.

HUD homes come with their own bidding process and timelines, and not every property or buyer qualifies for the $100 down option. Call me before you make an offer and I will walk you through how it actually works.

Why Choose an FHA Loan in Indianapolis?

FHA loans remain one of the most popular paths to homeownership in Indianapolis and Central Indiana, and for good reason. Backed by the Federal Housing Administration, these loans allow buyers to get into a home with as little as 3.5% down and more flexible credit requirements than conventional financing. Whether you're a first-time homebuyer navigating Indy's competitive neighborhoods or someone rebuilding after a financial setback, an FHA loan may be the right fit.

FHA Loans vs. Conventional: Key Differences

The biggest advantage FHA has over conventional financing is flexibility: lower minimum credit scores, higher debt-to-income ratios allowed, and a smaller down payment requirement. However, FHA loans do require an upfront mortgage insurance premium (MIP) and monthly MIP payments, which can make them slightly more expensive over time for high-credit borrowers. That's why I take the time to compare both options for every client before making a recommendation.

Who Qualifies for an FHA Loan?

• Credit score of 580 or higher for 3.5% down payment
• Credit score of 550-579 with 10% down
• Debt-to-income ratio generally up to 57% (case-by-case)
• Property must be your primary residence
• Property must meet FHA appraisal and safety standards
• Two years of employment history preferred (exceptions available)

FHA Loans in Indianapolis: Local Insight

Indianapolis continues to be one of the most affordable major metros in the Midwest, and FHA loan limits reflect that opportunity. The 2026 FHA loan limit for a single-family home in Marion County and surrounding Hamilton, Hendricks, and Boone Counties is $541,287, well above the median home price in the area, meaning most buyers can access FHA financing without hitting the ceiling. Neighborhoods like Broad Ripple, Fountain Square, Nora, and Lawrence are all within easy reach with FHA financing in place.

Frequently Asked Questions About FHA Loans

What is the minimum credit score for an FHA loan in Indiana?

580 gets you FHA's 3.5% down payment. Between 500 and 579 you can still qualify, but the down payment goes to 10%. Below 500, FHA financing isn't available.

Those are FHA's floors, not your lender's. Individual lenders add their own overlays on top, and plenty won't go near 580, which is exactly why the same borrower gets declined at one place and approved through a broker who can shop the file. If you've been told no on credit, it's worth a second opinion before you assume the answer is no everywhere.

How much is the FHA down payment?

3.5% of the purchase price with a credit score of 580 or higher. On a $250,000 Indiana home, that's $8,750.

The down payment can come from a documented gift, so you do not have to have saved it yourself. FHA accepts gift funds from:

• A family member
• Your employer
• A labor union
• A close friend with a clearly defined and documented interest in you
• A charitable organization
• A government agency or public entity that provides homeownership assistance

“Family member” is broader than most people expect: spouse or domestic partner, child, parent, grandparent, sibling, foster child or foster parent, and in many cases in-laws, step-relatives and adopted relatives.

Gift funds carry their own documentation requirements, and they are one of the more common reasons a file stalls in underwriting. Raise it early rather than the week before closing.

Does FHA mortgage insurance ever go away?

It depends entirely on your down payment, and the difference is permanent.

• Less than 10% down: the annual mortgage insurance premium runs for the full mortgage term on any loan longer than 15 years.
• 10% or more down: it comes off after 11 years.

Since most FHA buyers put down 3.5%, most FHA mortgage insurance never cancels. That's the single biggest reason Indiana homeowners refinance out of FHA into a conventional loan once they've built equity, because conventional PMI can be cancelled, FHA MIP usually can't. If you're carrying FHA mortgage insurance and your home has gained value, that math is worth running.

What are the FHA loan limits in Indiana?

FHA sets its limits county by county, and they reset every January.

For 2026, the floor (the limit that applies in lower-cost counties) is $541,287 for a single-family home. Two-unit properties go to $693,050, three-unit to $837,700, and four-unit to $1,041,125. The national ceiling for high-cost areas is $1,249,125.

Your county's exact figure is on HUD's official lookup. If the property you want sits above your county's limit, the conversation shifts to a conventional or jumbo loan, worth knowing before you write an offer.

Can I use an FHA loan to buy a multi-family property in Indiana?

Yes, on one- to four-unit properties, as long as you occupy one of the units as your primary residence. It's how a lot of Indiana buyers get started: a duplex where the tenant covers part of the payment.

Three- and four-unit properties carry two extra requirements. The property has to pass a self-sufficiency test, meaning the rental income has to support the mortgage payment. And FHA generally requires three months of PITI reserves after closing.

Passing the self-sufficiency test does not mean you're approved. You still have to satisfy credit, income, assets, debt-to-income and occupancy requirements like any other file. The test is a property requirement layered on top of the borrower requirements, not a substitute for them.

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