Indiana Rental Property Loans

Investment Property Loans in Indiana Based on Rental Income.

30 Year Fixed Rate

Interest only or fixed rate rental property loans designed exclusively for real estate investors.

  • Up to 80% LTV
  • Based on potential rental income
  • Short-term rentals allowed
  • Min loan amount: $75,000
  • Max loan amount: $3M


Refinance to increase cash flow, lower mortgage payments or cash out refinance to buy another property.

  • Up to 80% LTV (Refinance)
  • Up to 75% LTV (Cash out refinance)
  • Roll closing costs in loan proceeds
  • Min loan amount: $75,000
  • Max loan amount: $3M

Rental Portfolio Loans

Consolidate 5 or more rental properties into a single loan and one monthly payment.

  • Up to 80% LTV
  • Minimum 5 or more properties
  • Consolidated into 1 payment
  • Min loan amount: $500k
  • Max loan amount: $50M

Rental Loan Terms

Here are rental property loan terms for Indiana. Qualify based on the future rental income, not personal income.

Credit score Minimum 680
LTV Up to 80% LTV
Interest rate As low as 7%
Property types Single family home, condo, townhouse or 1-4 unit properties
Prepayment No prepayment penalty after 3 years
Loan types Amortized or interest only
Loan terms 30 year, 15 year, 5/1 and 7/1 ARMs

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  • Compare rental loan options
  • Get proof of funds today
  • See how much you qualify for
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Minimum Loan Requirements

Here are the minimum rental property loan requirements in the Hoosier State.

Minimum Credit Score

The minimum credit score to get approved for a Indiana rental property loan is 680.

Minimum Loan Amount

The minimum loan amount is $75,000.

Minimum DSCR Ratio

A minimum DSCR ratio of 1.2 is required. Use our DSCR loan calculator to determine your investment property’s DSCR.

Business Entity Required

Since these are business purpose loans, a legally registered business is required to get approved for a private money loan. Most lenders in Indiana will require this, so it’s a good idea to apply for a new LLC in the state of Indiana if you don’t already have one.

Minimum Documentation

The following documents will be required to get approved for any Indiana rental loans.

Best cities to buy a rental property in Indiana

These are the best cities to buy a rental property, based on strong demand for housing, rental market analysis and highly ranked school districts.

  • Indianapolis
  • Fort Wayne
  • Evansville
  • South Bend
  • Carmel

Is it hard to get a loan for a rental property in Indiana?

Indiana investment property loans are not based on personal income, making them easier to qualify for. Real estate investors can get ultra-competitive terms as long as they can come up with the minimum down payment, closing costs and meet the minimum DSCR.

How do I qualify for a DSCR loan in Indiana?

You can qualify for Indiana investment property loans if you meet the minimum credit score requirement, minimum DSCR ratio, have enough cash for the down payment and meet the minimum lender requirements.

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Rental Loan FAQ’s

There are many types of rental property loans that are available to investors. Here are some common questions you may have.

What is the down payment for a rental property in Indiana?

The minimum down payment to purchase or refinance a rental property in Indiana is 20%. However, it can vary based on your credit score, LTV and and DSCR.

What are the current rental loan interest rates?

The current interest rates for rental loans as of March 2024 range from 7% to 11%. Rates are subject to change and fluctuate daily.

What determines my interest rate on a rental loan in Indiana?

Your interest rate will vary depending on your credit score, loan to value, real estate market risk and investment property risk.

Does Capital Ton LLC work with new investors?

Yes, we have various options for securing Indiana DSCR loans for new investors. Those typically come with slightly higher origination fees. Repeat or seasoned investors, can expect lower closing costs.

Does Capital Ton LLC offer loans for short term rentals?

Yes, Capital Ton LLC has flexible loan options such as DSCR and AirDNA for short term rentals. Seasoned and first-time investors are eligible for ultra-competitive terms.

Does Capital Ton LLC offer interest-only rental loans?

Yes, investors can secure “partial” interest-only rental loans which typically come with lower interest rates. These type of loans are interest-only for the first 10 years and then amortize for the following 20 years.

Is Indiana a landlord friendly state?

Indiana has no statewide limit on security deposits, allowing landlords to decide the amount they require, typically up to two months’ rent. For month-to-month lease agreements, landlords can change the rent price with a 30-day notice to the tenant.

When it comes to evicting tenants for not paying rent or violating lease terms, landlords can move quickly. Indiana law allows landlords to give a notice of just ten days for missed rent payments before proceeding with eviction. Indiana also grants landlords the right to access their properties for inspections, repairs, or maintenance, with a reasonable notice (usually 24 hours).