Home financing in Marion County.

Home financing — most commonly a mortgage — is a loan you use to purchase a home. You borrow money from a lender, buy the property, and then repay the loan over time, usually 15 or 30 years, with interest. The home itself serves as collateral, meaning the lender can reclaim it if you stop making payments.

There are several common types of home loans available in Marion County:

- **Conventional loans** are offered by banks and credit unions and are not backed by the government. They typically require a stronger credit score and a down payment of at least 3–20%.

- **FHA loans** are insured by the federal government and allow down payments as low as 3.5%, making them popular with first-time buyers.

- **USDA and VA loans** serve specific groups — rural buyers and military veterans, respectively. Most of Marion County (an urban area) does not qualify for USDA, but VA loans are available to eligible veterans anywhere.

- **ITIN loans** are mortgages for people who do not have a Social Security number but do have an Individual Taxpayer Identification Number (ITIN). Several local lenders in Indianapolis offer these.

- **Down payment assistance programs** through the Indiana Housing and Community Development Authority (IHCDA) can provide grants or low-interest second loans to help cover your down payment and closing costs.

The right loan for you depends on your income, credit history, immigration status, and the property you want to buy.

Marion County is home to Indianapolis, Indiana's largest city, with a diverse and growing population that includes a significant Latino community, immigrant families, self-employed contractors, and hourly workers across industries like construction, healthcare, warehousing, and food service.

**Income and Employment:**

Lenders typically want to see steady income for at least two years.

If you're a W-2 employee, that's straightforward.

If you're self-employed or a solo contractor — common in Marion County's construction and trades sectors — lenders will look at your tax returns (usually two years) to verify income. Some ITIN-friendly lenders use bank statements instead of tax returns, which can help if your reported income looks lower than what you actually earn.

**Credit History:**

A credit score of 620 or higher is generally needed for conventional loans; FHA accepts scores as low as 580 (with 3.5% down) or even 500 (with 10% down). If you don't have a U.S. credit score, some local lenders accept alternative credit history — on-time rent payments, utility bills, or remittance records.

**Immigration Status:**

You do not need to be a U.S. citizen to get a mortgage. Permanent residents, work visa holders, DACA recipients, and ITIN holders have all successfully obtained home loans in Marion County. Several local lenders specialize in serving these communities.

**IHCDA Income Limits:**

The Indiana Housing and Community Development Authority sets income limits for its assistance programs. For Marion County, household income limits for IHCDA's First Place and Next Home programs are updated annually — as of recent years, limits for a family of four are roughly $90,000–$110,000, depending on the program. Always check the current IHCDA website for exact figures.

Being prepared with your paperwork before you apply can make the process faster and less stressful. Most lenders in Marion County will ask for some or all of the following:

**For all applicants:**

- Government-issued photo ID (passport, driver's license, consular ID/matrícula consular)

- ITIN or Social Security number

- Two years of tax returns (federal, and Indiana state if applicable)

- Two most recent W-2s or 1099s

- Two to three months of bank statements

- Recent pay stubs (last 30 days) or proof of self-employment income

- Proof of any additional income (rental income, child support, etc.)

- Landlord contact information and 12–24 months of rent payment history

**For self-employed or solo contractors:**

- Two years of business tax returns (if you have a registered business)

- A profit-and-loss statement, ideally prepared or reviewed by an accountant

- Business bank statements (some ITIN lenders accept these in place of tax returns)

**For ITIN applicants:**

- ITIN letter from the IRS

- Passport and any relevant visa or immigration documents

- 12–24 months of bank statements

- Alternative credit references (utility bills, insurance payments, rent receipts)

**Property-related documents** (provided by your real estate agent or the title company):

- Signed purchase agreement

- Property address and legal description

- HOA documents, if applicable

Organizing these documents in a folder — physical or digital — before you start talking to lenders will save you time.