How Much Do I Need to Buy a Home in Indianapolis?

Down Payment: What to Expect

Contrary to the common belief that a 20% down payment is mandatory, many first-time buyers in Indianapolis secure homes with significantly less. Depending on the loan type:

Conventional Loans: As low as 3% down.
FHA Loans: Require a minimum of 3.5% down.
VA and USDA Loans: Offer 0% down options for eligible buyers.

Given the median home price in Indianapolis is around $248,000, a 3% down payment would be approximately $7,440.

Closing Costs: Beyond the Down Payment

Closing costs encompass various fees associated with finalizing your mortgage and can range from 2% to 5% of the home’s purchase price. For a $248,000 home, this translates to $4,960 to $12,400. These costs typically include:

• Loan Origination Fees

• Appraisal and Inspection Fees

• Title Insurance

• Recording Fees

• Prepaid Taxes and Insurance

Down Payment Assistance Programs

Indiana offers several programs to assist first-time homebuyers:

IHCDA First Step Program: Provides up to 6% of the purchase price in down payment assistance.
IHCDA Next Home Program: Offers 3.5% down payment assistance, available to both first-time and repeat buyers.
INHP Down Payment Assistance: Provides funds ranging from $7,500 to $24,999, depending on eligibility.

These programs often have income and purchase price limits, so it’s essential to check eligibility criteria.

Additional Costs to Consider

Beyond the down payment and closing costs, be prepared for:

Home Inspection Fees: Typically $300–$500.
Moving Expenses: Varies based on distance and services.
Initial Repairs or Upgrades: Depending on the property’s condition.
Utility Setup Fees: For electricity, water, internet, etc.

Final Thoughts

While the upfront costs of buying a home can seem daunting, numerous programs and loan options are available to ease the financial burden for first-time buyers in Indianapolis. By understanding these costs and exploring available assistance, you can make informed decisions on your path to homeownership.

Want to chat about how you can save money on these expenses when buying a home? Hit me up 📲

317-629-0070 - Paul Linn