FHA Mortgage Indiana

An FHA mortgage is a home loan insured by the Federal Housing Administration (FHA), designed to help borrowers—especially first-time homebuyers—qualify for a mortgage with more flexible requirements than conventional loans.

Key Features of an FHA Mortgage in Indiana:

Feature	FHA Loan
Down Payment	As low as 3.5% with a credit score of 580+
Credit Score	Minimum 580 (500–579 possible with 10% down)
Loan Limits	Vary by county; typically lower than conventional limits
Mortgage Insurance	Upfront MIP (1.75% of loan amount) + monthly MIP
Debt-to-Income Ratio	Typically up to 43%, can go higher with strong compensating factors
Occupancy	Must be a primary residence
Property Requirements	Must meet FHA appraisal and safety standards

Pros:

• Easier to qualify with lower credit scores

• Low down payment options

• Assumable loans (can be transferred to a qualified buyer)

Cons:

• Mortgage insurance premiums (MIP) required for the life of the loan (if under 10% down)

• Loan limits are lower than some conventional options

• Must meet strict appraisal requirements

Who Should Consider an FHA Loan?

• First-time homebuyers

• Buyers with less-than-perfect credit

• Those who need a low down payment option

• People with a higher debt load