State Buyer Guide

First-Time Home Buyer Guide
for Indiana

Down payment assistance, Indiana housing programs, closing cost estimates, and what to know before buying — including from FSBO sellers.

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$230,000
Avg Home Price
0.84%
Property Tax Rate
~$4,830
Est. Closing Costs
None (recording fees only)
Transfer Tax

Indiana Housing Finance Agency Programs

The Indiana Housing and Community Development Authority (IHCDA) is your primary source for below-market mortgage rates and down payment assistance in Indiana. Programs are available through approved lenders — not directly through the HFA.

IHCDA First Place Program
6% of purchase price as a forgivable second mortgage — forgiven over 2 years

FHA, VA, and conventional loans with DPA for first-time buyers.

Income limit: $90,000–$105,000 (varies by county)
Learn more at Indiana Housing and Community Development Authority (IHCDA)
IHCDA Next Home Program
3.5% of purchase price as a forgivable second mortgage

DPA for buyers who haven't owned in 3+ years.

Income limit: $90,000–$105,000
Learn more at Indiana Housing and Community Development Authority (IHCDA)
High Value — $240/funded loan

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Closing Costs in Indiana

Typical Closing Cost Range
2.1% of purchase price

On a $230,000 home: approximately $4,830

Transfer Tax
None (recording fees only)

Indiana has no dedicated real estate transfer tax — only recording fees, which keeps closing costs lower than neighboring states.

Attorney at Closing?
No — title company state

Indiana is a title-company state. An attorney is not required at closing, though for FSBO transactions it's worth having one review the purchase agreement.

Key Tips for Buying in Indiana

  • Indiana caps property taxes at 1% of assessed value for homesteads — apply for the homestead deduction immediately after purchase.
  • Sump pumps are standard in Indiana basements — verify they work and consider a battery backup.
  • Indianapolis offers some of the best value per square foot of any major metro area in the country.
  • Check for radon — levels are elevated in many parts of Indiana, especially in basements.
Home Inspection

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Legal Help for Indiana Buyers

While Indiana doesn't require an attorney at closing, FSBO buyers should strongly consider having one review the purchase agreement and title work.

Legal Help for FSBO Buyers

Nolo

Nolo has been the go-to legal resource for DIY buyers since 1971. Their real estate guides explain purchase agreements, contingencies, and closing in language anyone can understand.

Browse Legal Guides
LegalZoom

Get a real estate attorney to review your purchase agreement or help you draft an offer letter — often for a fraction of traditional legal fees.

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US Legal Forms

Download state-specific purchase agreements, addenda, and disclosure forms — written by attorneys, ready to use in your state.

Browse Real Estate Forms

Frequently Asked Questions

What first-time buyer programs are available in Indiana?

Indiana first-time buyers can access programs through the Indiana Housing and Community Development Authority (IHCDA) (https://www.in.gov/ihcda/), including the IHCDA First Place Program (6% of purchase price as a forgivable second mortgage — forgiven over 2 years) and the IHCDA Next Home Program (3.5% of purchase price as a forgivable second mortgage). Federal programs like FHA loans (3.5% down) and USDA loans (0% down in eligible areas) are also available.

What are typical closing costs in Indiana?

Closing costs in Indiana typically run 2.1% of the purchase price. Transfer tax: None (recording fees only). Indiana has no dedicated real estate transfer tax — only recording fees, which keeps closing costs lower than neighboring states.

Do I need an attorney to buy a home in Indiana?

Indiana is a title-company state. An attorney is not required at closing, though for FSBO transactions it's worth having one review the purchase agreement.

What is the average home price in Indiana?

The median home price in Indiana is approximately $230,000. Property taxes average 0.84% of assessed value annually.

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