Indiana HELOC Guide 2026: Indianapolis & Statewide Options

Indiana offers something increasingly rare in American housing: genuine affordability. Low home prices, reasonable property taxes, and a stable economy mean Indiana homeowners can build equity and access it at competitive rates.

Indiana HELOC Rates in 2026

Current Indiana HELOC rates range from 7.75% to 10.00% APR, with credit unions offering the best deals.

Top Indiana HELOC Lenders

Indiana Members Credit Union

Statewide credit union with excellent HELOC offerings.

• Rates: Starting around 7.75% APR
• Max LTV: Up to 90% CLTV
• Fees: Minimal closing costs
• Standout: Indiana-focused, member-first approach

Forum Credit Union

Indianapolis-based with strong central Indiana presence.

• Rates: Competitive, starting near 8.00%
• Standout: Local expertise, community involvement

Purdue Federal Credit Union

Open to Purdue affiliates and anyone in select Indiana counties.

• Rates: Very competitive
• Standout: Strong reputation, community focus

First Merchants Bank

Indiana regional bank with broad coverage.

• Rates: Competitive for existing customers
• Standout: Full-service banking, local presence

Old National Bank

Evansville-based regional serving Indiana, Kentucky, and beyond.

• Rates: Relationship-dependent
• Standout: Regional expertise, established presence

Indianapolis Metro Considerations

Growth Market

Indianapolis has experienced steady growth and appreciation. Corporate presence (Eli Lilly, Salesforce, Anthem) provides employment stability.

HELOC implications:

• Equity has built steadily for existing owners
• Stable incomes support DTI ratios
• Affordable prices mean accessible homeownership

Suburban Strength

Suburbs like Carmel, Fishers, Zionsville, and Noblesville have appreciated strongly. Hamilton County (north suburbs) has some of Indiana's highest home values.

Downtown Revival

Indianapolis downtown has revitalized, with condo and urban housing options. Lenders evaluate urban condos similarly to other metros—HOA financials and owner-occupancy matter.

Sports and Tourism

Indianapolis's convention and sports economy (Colts, Pacers, Indianapolis 500) supports property values throughout the metro.

Fort Wayne Considerations

Affordability Champion

Fort Wayne consistently ranks among America's most affordable mid-size cities. Home prices are low, which means:

• Smaller HELOC amounts in absolute dollars
• High LTV ratios matter more
• Some lenders' minimum amounts may exceed your equity

Employment Stability

Defense contractors, healthcare, and manufacturing provide diverse employment.

South Bend / Elkhart Area Considerations

University Impact

Notre Dame's presence supports South Bend values. Elkhart's RV manufacturing industry provides cyclical but significant employment.

Chicago Proximity

Northwest Indiana (Gary, Hammond, Michigan City) serves as Chicago suburbs with Indiana prices. Values have appreciated as Chicago workers seek affordability.

Southern Indiana Considerations

Louisville Influence

Southern Indiana (New Albany, Jeffersonville, Clarksville) effectively functions as Louisville, KY suburbs. Values and employment track Louisville's market.

Evansville Market

Evansville offers affordability with a diversified regional economy. Old National Bank has deep local expertise.

Indiana HELOC Regulations

No Mortgage Recording Tax

Indiana doesn't charge mortgage recording taxes, keeping HELOC closing costs low.

Non-Judicial Foreclosure

Indiana allows non-judicial foreclosure, typically taking 5-7 months.

Redemption Rights

Indiana doesn't provide post-foreclosure redemption rights for residential properties (unlike some states).

Tax Implications for Indiana Residents

Federal Deduction

Standard rules: HELOC interest deductible when used for home improvement, subject to $750K total mortgage debt limit.

Indiana State Income Tax

Indiana has a flat 3.15% state income tax, plus county taxes (typically 1-2.5%). If you itemize federally and have deductible HELOC interest, you'll get a modest state benefit.

Property Tax Cap

Indiana caps property taxes at 1% of assessed value for primary residences. This is among the lowest effective rates in the nation, which means:

• Lower PITI = better DTI ratio
• More room for HELOC payments
• Property taxes rarely limit borrowing capacity

HELOC vs. Other Options in Indiana

HELOC vs. IHCDA Programs

Indiana Housing and Community Development Authority offers various programs, but most focus on purchase assistance. A HELOC is typically your best bet for accessing existing equity.

HELOC vs. Cash-Out Refinance

If you have a sub-4% first mortgage from 2020-2021, protect it. A HELOC accesses equity without refinancing your favorable primary rate.

HELOC vs. Personal Loan

For amounts under $15,000, a personal loan avoids using your home as collateral. For larger amounts, HELOC rate savings typically justify the secured loan.

How to Get the Best HELOC Rate in Indiana

1. Check Indiana Members Credit Union. Statewide coverage with competitive rates.

2. Get quotes from Forum Credit Union (Indianapolis area) or Purdue Federal CU. Strong local options.

3. Consider First Merchants or Old National. Regional banks with Indiana expertise.

4. Leverage your affordability advantage. Indiana's low property taxes mean more of your income goes toward debt service, improving DTI.

5. Shop multiple lenders. Even 0.25% difference matters on a 10-year draw.

The Bottom Line

Indiana homeowners benefit from affordable housing, low property taxes, and competitive credit union options. Indiana Members Credit Union and Forum Credit Union are strong starting points.

Indianapolis owners have the most equity growth; Fort Wayne and other markets offer even greater affordability. Indiana's 1% property tax cap is a genuine competitive advantage for DTI calculations.

Get quotes from multiple credit unions first. Indiana's low closing costs (no mortgage recording tax) make HELOCs relatively inexpensive to obtain.

---

Ready to see how much equity you can access? [Check your options →]