A client preparing to purchase their first home as a veteran once asked if it was possible to buy a house without a down payment. Looking at the recent market, Indianapolis is particularly well-suited to answer this question.

According to Redfin, as of June 2026, the median sale price in Indianapolis over the last three months is $259,000, which is a 2.3 percent increase compared to the same period last year. For Marion County as a whole, the median price during the same period has remained relatively stable at around $251,000. Compared to other major cities, the market still maintains a lower price range.

In this price range, VA loans are especially effective. Indianapolis is home to the former Army base Fort Benjamin Harrison, which still hosts reserve units for the Marine Corps, Navy, Indiana National Guard, and the MEPS responsible for enlistment procedures. Additionally, with Grissom Air Reserve Base located 65 miles away, there is a steady demand for VA loans among veterans and active-duty families. VA loans allow for a 0 percent down payment and do not require PMI, but they do come with a funding fee ranging from 1.25 to 3.3 percent of the loan amount. This funding fee varies based on whether it is the first use or a subsequent use, and how much the down payment is, so it is important to check the exact amount for individual cases.

Among the cases I reviewed, there was one instance where a client was able to contract a home in the $250,000 range without any down payment using a VA loan. Given that the median sale price in Indianapolis is significantly lower than the FHA loan limit of $541,287 or the 2026 core loan limit of $832,750, both VA and FHA loans, as well as conventional loans, can be applied without difficulty in this market. However, for eligible veterans, it seems more practical to consider VA loans first rather than delaying to save for a down payment.

From an investor's perspective looking for rental income, Indianapolis is considered a market where rental prices are relatively high compared to sale prices. While the lower entry costs compared to other major cities are a clear advantage, the significant variation in rental demand and vacancy rates by neighborhood makes it risky to predict profits without directly checking the rental prices in specific areas.

For Korean families who place importance on school districts, it is essential to note that there are significant differences in school district ratings even within Marion County. While resources like GreatSchools or Niche can be helpful, school district boundaries change frequently, so it is advisable to verify the actual assigned school for a given address before purchasing. For families relocating from other states, it is worth noting that Indiana's property tax is capped by state constitution, making it relatively predictable. However, just because there is a cap does not mean there are no tax rates, so it is wise to check the actual amounts with county data compared to previous residences. Indianapolis is known for having a lower overall cost of living for a major city, but this can only be accurately felt when comparing not just housing prices but also taxes and insurance costs.

USDA loans generally do not apply within Marion County. The downtown Indianapolis area and its surroundings fall into USDA ineligible zones, but there may still be options in the outskirts of adjacent counties like Hamilton, Boone, Hendricks, Morgan, Johnson, Shelby, and Hancock. If the budget and conditions align, it may be worth broadening the search. This article is not investment or legal advice, and it is recommended to consult with a VA-approved lending institution and professionals before finalizing any contracts or verifying eligibility.