Indiana investor loans

DSCR loans in Indiana

Qualify on the property's rent, not your income. Up to 85% LTV for U.S. residents, 70% for foreign nationals.

Term sheet the same business day. Flipping? Fix-and-flip loans statewide.

Markets

Indiana rental markets at a glance

Typical home value and rent by metro, with the gross rent yield: a year of rent divided by the value.

Higher yield means less money down to reach a 0.8 DSCR, where the best pricing starts. Each link opens the DSCR calculator with that market's numbers.

Metro	Typical home value	Typical rent	Gross yield	Down for best pricing
South Bend	$238,000	$1,260/mo	6.4%	25%	Run the DSCR
Indianapolis	$292,000	$1,530/mo	6.3%	25%	Run the DSCR
Fort Wayne	$257,000	$1,270/mo	5.9%	30%	Run the DSCR
Evansville	$225,000	$1,100/mo	5.9%	35%	Run the DSCR

Metro-level typical values and rents, September 2026. The down payment column and the calculator link assume a 7.5% rate, a 30-year payment and $1,800 a year insurance. Change them to match your deal.

Taxes

Indiana property taxes and your DSCR

Indiana's effective property tax rate is 0.76% of value a year (2024), ranked 29th among the states.

On a $292,000 rental, 0.76% is about $2,219 a year, or $185 a month added to the payment the rent has to cover.

The actual bill depends on the county and city. Use the property's real tax figure when you run the numbers.

Know before you buy

What Indiana investors should know

Landlord rules worth knowing

Within 45 days of receiving the tenant's forwarding address, a landlord must either refund the security deposit in full or deliver an itemized written statement of what is kept and why.

Unpaid rent is not grounds for an emergency eviction, and removing a tenant with the sheriff requires a court order first.

Source: Indiana Office of Court Services, Small Claims Manual (2026)

Foreclosure is judicial

Indiana foreclosures are filed and decided as court cases, so they are slower than in states where a trustee sells the property without a lawsuit.

That adds timeline risk for lenders: one reason leverage and reserves matter in underwriting.

Source: Indiana Judicial Branch, Help with Mortgage Foreclosures

Short stays are taxed like hotel rooms

Indiana sales tax applies to rentals of accommodations for less than 30 consecutive days, including owners renting out their own homes. Hosts must register as retail merchants and collect the tax.

Booking platforms that act as marketplace facilitators must collect the sales tax and any county innkeeper's tax for their hosts. Stays of 30 consecutive days or more are not subject to sales tax.

Source: Indiana Department of Revenue, Sales Tax Information Bulletin 41 (March 2024)

Property tax on rentals is capped at 2%

Indiana caps property taxes on residential property that is not a homestead, including single-family rentals and buildings with two or more units, at 2% of gross assessed value. The county auditor credits any amount over the cap.

Assessed values are adjusted up or down every year to reflect market value-in-use.

Source: Indiana DLGF, Property Tax Caps fact sheet (April 2024)

Rates

Indiana DSCR loan rates

Rates from 6.172%*, the same as nationwide. Rates move with the market, so the reliable number is a priced quote on your property.

Your DSCR, credit score, LTV, prepayment penalty and loan size move the rate most. In Indiana, the property tax bill above feeds straight into the DSCR.

This week's DSCR loan rates

* This may be for the strongest files, sometimes with a buydown. Subject to underwriting. Terms as of November 2026.

Requirements

Indiana DSCR loan requirements

A Indiana rental, long-term or short-term, not a home you live in
DSCR of 0.75 or higher, 0.8 or higher for the best pricing
Up to 85% LTV on a purchase for U.S. residents, 70% for foreign nationals
Rent from the current lease, or the appraiser's market rent
No tax returns, W-2s or pay stubs
Close in your name or an LLC

Programs

Loans for Indiana investors

DSCR rental loans: up to 85% LTV purchase, 70% cash-out, 30-year fixed or interest-only
Fix and flip (hard-money): up to 90% of purchase and 100% of rehab, capped at 75% of ARV
Bridge loans: up to 70% LTV, 7-14 days to close
Foreign nationals: every program, no SSN or U.S. credit, close in a U.S. LLC

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FAQ

Indiana DSCR loan questions

What are DSCR loan requirements in Indiana?

The same as nationwide. Best pricing at a DSCR of 0.8 or higher. Minimum 0.75 with a pricing adjustment.

Up to 85% LTV on a purchase for U.S. residents. Credit and reserves are priced in. No tax returns.

How much property tax does an Indiana rental pay?

Indiana caps property tax on non-homestead residential property, which includes rentals, at 2% of gross assessed value.

The actual bill depends on local rates. Use the county tax bill in the DSCR calculation.

Do Indiana short-term rentals collect sales tax?

Yes. Stays of less than 30 consecutive days are subject to Indiana sales tax and any county innkeeper's tax. Platforms acting as marketplace facilitators collect it for their hosts.

Sources

General information, not legal or tax advice. Loan terms are subject to underwriting.