Indiana writes its property tax limits into the state constitution. Rentals are capped at a higher share of value than an owner's home, but the cap still keeps tax bills predictable, which helps a large rental loan.
In short: LendingStreet's jumbo DSCR loans cover about $1.5M to $5M+ on Indiana investment properties of 1 to 8 units, and they qualify on rental income rather than W-2s or tax returns. In Indiana, jumbo balances usually come from portfolios or 5-8 unit buildings in Indianapolis, larger homes in Carmel, Zionsville and Fishers, and lake and dunes homes on Lake Wawasee, Lake Michigan and Lake Lemon. Rentals fall under the 2% property tax cap and Indiana has no transfer tax.
Hamilton and Boone counties north of Indianapolis, Carmel, Fishers, Westfield, Noblesville and Zionsville, have the state's largest concentration of high-value homes, many leased to relocating professionals. Inside Indianapolis, Meridian-Kessler, Butler-Tarkington and the downtown neighborhoods have older homes and small multi-unit buildings.
Lake Wawasee and the northern Indiana lakes, the Lake Michigan shoreline near Indiana Dunes, and Lake Monroe near Bloomington have homes rented by the week in summer. Bloomington and West Lafayette add multi-unit buildings near Indiana University and Purdue.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| Carmel, Fishers, Zionsville | Executive home on a 12-month lease | Comparable leases, HOA rules |
| Indianapolis core | 5-8 unit building or several rentals | Combined rent, older systems |
| Lake Wawasee and Dunes | Lake home rented weekly | Seasonal revenue, flood and shoreline |
| Bloomington and West Lafayette | Student-area buildings | Turnover, city rental permits |
Indiana home values are moderate, so few single rentals reach $1.5M. A jumbo balance here usually means an Indianapolis portfolio, a 5-8 unit building, or a lake home with strong summer bookings.
That is good news for the ratio: a group of modest rentals usually covers its payment more comfortably than one expensive home.
Indiana's constitution caps property tax bills as a share of gross assessed value: 1% for an owner's homestead, 2% for residential rental property and 3% for most other property. Some voter-approved levies can sit outside the cap. When an investor buys a former homestead, the bill can roughly double toward the rental cap, so budget from the rental figure, not the seller's bill.
Indiana has no real estate transfer tax. Buyers file a sales disclosure form and pay ordinary recording, title and lender costs.
Indiana sees regular severe storms, hail and tornadoes, so wind and hail deductibles matter, especially on large roofs. Lake and Lake Michigan shoreline homes can face flood and erosion questions, and older Indianapolis buildings may have aging systems that affect pricing.
This example is illustrative and not a quote. An investor refinances seven single-family rentals in Indianapolis and Lawrence valued at $1,540,000 in total. Combined rent is $13,300 a month. Taxes, which sit at the 2% rental cap, are budgeted at $2,550 a month and insurance at $1,050.
At 75% LTV the loan is $1,155,000 and estimated principal and interest is about $7,879, for a total monthly payment of about $11,479 and a DSCR of about 1.16x. At 65% LTV the loan is $1,001,000, estimated principal and interest is about $6,829, the payment is about $10,429 and DSCR is about 1.28x.
Seven leases spread the risk, and the tax cap keeps that line predictable. A blanket portfolio loan can put all seven under one closing, with release provisions if you later sell one house.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| Combined value | $1,540,000 | $1,540,000 |
| Loan amount | $1,155,000 | $1,001,000 |
| Estimated principal and interest | $7,879 | $6,829 |
| Property taxes | $2,550 | $2,550 |
| Insurance | $1,050 | $1,050 |
| Total monthly payment | $11,479 | $10,429 |
| Monthly rent | $13,300 | $13,300 |
| DSCR | About 1.16x | About 1.28x |
Indianapolis requires short-term rental registration, and lake communities and resort areas may have county permits and lodging taxes. Bloomington and West Lafayette have rental permit and inspection programs for long-term rentals. Check the city or county before you buy.
Some programs qualify a short-term rental on projected revenue. Most Indiana jumbo files run on 12-month leases.
The test is simple: does the property's rent cover its payment? Lenders add principal, interest, taxes, insurance and HOA dues, divide the rent by that total and generally want 1.0x or more. Some programs accept a ratio under 1.0x with other strengths in the file.
As the loan gets bigger, the file gets more scrutiny. Reserves are typically higher, appraisals are reviewed more closely and the highest LTVs are often reserved for smaller balances. Specific limits vary by program.
If one high-value property does not cover its payment at the leverage you want, there are other routes. Five or more rentals can go under one blanket portfolio loan, qualified on combined cash flow with one closing, one payment and release provisions when a property sells. A 5-8 unit building qualifies on the combined rent of every unit, with leverage that varies by program.
You can also bring more cash, take a smaller loan, or look at a sub-1.0 DSCR program. Buildings of 9 or more units are commercial; see our multifamily loans page for those.
Start with these items:
Our investor loans are business-purpose loans on non-owner-occupied property. Share the property details and your target leverage, and we will size the loan on realistic costs, show the ratio at a few loan amounts and lay out the options. Use the form below or call (877) 298-1001. For broader context, see our Indiana DSCR loans page.
Indiana caps residential rental property taxes at 2% of gross assessed value, with some voter-approved levies outside the cap. An owner's home is capped at 1%, so your bill may be higher than the seller's.
No. Indiana has no real estate transfer tax, though a sales disclosure form and ordinary closing costs apply.
Often, yes. Several modest rentals usually show stronger coverage than one high-value home, and a blanket loan can combine them.
Our DSCR programs have no stated maximum. Above about $1.5M, expect closer review, higher reserves and often a lower maximum LTV.
No. DSCR loans qualify on the property's rent. Expect a credit check with a 620 minimum and verification of your down payment and reserves.
Yes, LLC ownership is routine on DSCR loans. Members usually sign for the loan personally, and we will review the operating agreement.
No. Our investor loans are business-purpose loans on non-owner-occupied property only.
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