If you’re renting in Indy right now, you’ve probably seen the headlines:
“Interest rates are too high.”
“Down payments cost 20%.”
“You can’t compete as a first-time buyer.”
Sound familiar?
Let’s be real — most people overestimate what it takes to buy a home. In 2025, opportunities still exist for everyday Indianapolis buyers — especially with local programs, flexible loans, and smart strategy.
Here are the five biggest homebuying myths we hear all the time (and the truth behind them).
Myth #1: “You Need 20% Down to Buy a Home”
Reality: Nope — not even close.
The average first-time buyer in 2025 puts down just 6–8%, according to the National Association of Realtors.
In Indianapolis, there are several low-down-payment options that make buying far more achievable:
FHA Loans: 3.5% down
Conventional 97: 3% down for qualified buyers
VA Loans: 0% down for eligible veterans
IHFA First Place Program: Down payment assistance for Indiana residents
Example: On a $250,000 home, 3.5% down = $8,750 — not $50,000.
For a deeper dive into available programs, check out Indianapolis 2025 First-Time Homebuyer Programs: What You Should Know.
Myth #2: “You Need Perfect Credit”
Reality: You don’t need a spotless 800+ score to qualify.
In fact, most successful buyers in Indy have credit scores between 620 and 740 — and lenders look at more than just your number.
Even if your credit isn’t perfect, you can still qualify by:
✅ Showing stable income
✅ Paying down high-interest debt
✅ Adding a co-borrower
✅ Using lender credit repair or rapid rescore programs
Pro tip: A mortgage pre-approval can tell you exactly what’s possible with your current credit — no guesswork needed.
Myth #3: “Now’s a Bad Time to Buy Because of Interest Rates”
Reality: Rates aren’t the full story — your timing, budget, and market strategy matter more.
Yes, rates have hovered around 6.6–6.8% through 2025, but so have home prices and rent growth. Indy’s rental market continues to climb about 3% annually, meaning waiting could cost more in the long run.
Plus, you can refinance later when rates drop — but you can’t go back in time and buy at today’s prices.
Curious how rates might shift in the coming months? Check out the 2025 Mortgage Rate Update: What Indy Buyers Should Expect.
Myth #4: “You Can’t Compete as a First-Time Buyer”
Reality: First-time buyers are actually more competitive than you think — especially in 2025’s calmer market.
Indy bidding wars have cooled off since 2022, giving new buyers room to negotiate and use creative financing or closing cost assistance to strengthen offers.
Here’s how you can win:
Get pre-approved early (serious buyers get attention).
Work with a local agent who knows which sellers are motivated.
Look for homes that have sat 30+ days — those sellers are often ready to deal.
Offer flexible terms like a quick or delayed closing.
The market still moves fast — but it’s no longer a race you can’t win.
Myth #5: “Buying Costs More Than Renting”
Reality: In many Indy neighborhoods, owning is now cheaper than renting.
Example (2025 averages):
Rent for a 2BR apartment in Broad Ripple: $1,600/month
Mortgage for a $250,000 home with 5% down: ~$1,720/month (including taxes + insurance)
That extra $100–$150 a month builds equity and long-term wealth instead of going toward your landlord’s bottom line.
Add in tax deductions, appreciation, and stability — and owning often wins by year two.
Bonus Myth: “You Have to Wait Until Spring to Buy”
Reality: Indianapolis’s winter and fall markets can actually favor buyers.
There’s less competition, motivated sellers, and faster closing timelines.
Plus, sellers listing in December or January usually need to sell — creating opportunity for buyers who stay active.
Timing isn’t about the season — it’s about your readiness and local inventory.
Quick Stats: The 2025 Indy Buyer Landscape
According to Redfin + MIBOR (Q3 2025):
Median home price: $285,000 (up 2.5% YoY)
Median rent: $1,450/month
Average days on market: 31
First-time buyer share: 33% of all purchases
These numbers show Indy remains one of the most accessible metros for homeownership in the Midwest.
FAQs: Debunking Indy Homebuyer Myths
Do I really need a Realtor to buy my first home?
Yes — your agent is paid by the seller, not you. They’ll help you find homes, negotiate terms, and guide you through the process stress-free.
Can I buy with student loans?
Absolutely. As long as your debt-to-income ratio is manageable, lenders can often work with you.
Is now a risky time to buy?
Not in Indy. With moderate prices, job stability, and strong rental demand, it’s one of the country’s most balanced 2025 markets.
Can I buy if I just moved to Indianapolis?
Yes! Local lenders and agents regularly work with newcomers. You’ll just need verifiable income and 30+ days of employment history.
Final Thoughts: Don’t Let Myths Hold You Back
Buying your first home in Indianapolis isn’t about timing the market perfectly — it’s about making an informed move when you’re ready.
If you’ve been on the fence because of old myths or outdated advice, 2025 is a great time to revisit your options.
The Roots Realty Co. team can connect you with local lenders, first-time buyer programs, and off-market listings that make homeownership more accessible than you think.
If you’re renting in Indy right now, you’ve probably seen the headlines:
“Interest rates are too high.”
“Down payments cost 20%.”
“You can’t compete as a first-time buyer.”
Sound familiar?
Let’s be real — most people overestimate what it takes to buy a home. In 2025, opportunities still exist for everyday Indianapolis buyers — especially with local programs, flexible loans, and smart strategy.
Here are the five biggest homebuying myths we hear all the time (and the truth behind them).
Myth #1: “You Need 20% Down to Buy a Home”
Reality: Nope — not even close.
The average first-time buyer in 2025 puts down just 6–8%, according to the National Association of Realtors.
In Indianapolis, there are several low-down-payment options that make buying far more achievable:
FHA Loans: 3.5% down
Conventional 97: 3% down for qualified buyers
VA Loans: 0% down for eligible veterans
IHFA First Place Program: Down payment assistance for Indiana residents
Example: On a $250,000 home, 3.5% down = $8,750 — not $50,000.
For a deeper dive into available programs, check out Indianapolis 2025 First-Time Homebuyer Programs: What You Should Know.
Myth #2: “You Need Perfect Credit”
Reality: You don’t need a spotless 800+ score to qualify.
In fact, most successful buyers in Indy have credit scores between 620 and 740 — and lenders look at more than just your number.
Even if your credit isn’t perfect, you can still qualify by:
✅ Showing stable income
✅ Paying down high-interest debt
✅ Adding a co-borrower
✅ Using lender credit repair or rapid rescore programs
Pro tip: A mortgage pre-approval can tell you exactly what’s possible with your current credit — no guesswork needed.
Myth #3: “Now’s a Bad Time to Buy Because of Interest Rates”
Reality: Rates aren’t the full story — your timing, budget, and market strategy matter more.
Yes, rates have hovered around 6.6–6.8% through 2025, but so have home prices and rent growth. Indy’s rental market continues to climb about 3% annually, meaning waiting could cost more in the long run.
Plus, you can refinance later when rates drop — but you can’t go back in time and buy at today’s prices.
Curious how rates might shift in the coming months? Check out the 2025 Mortgage Rate Update: What Indy Buyers Should Expect.
Myth #4: “You Can’t Compete as a First-Time Buyer”
Reality: First-time buyers are actually more competitive than you think — especially in 2025’s calmer market.
Indy bidding wars have cooled off since 2022, giving new buyers room to negotiate and use creative financing or closing cost assistance to strengthen offers.
Here’s how you can win:
Get pre-approved early (serious buyers get attention).
Work with a local agent who knows which sellers are motivated.
Look for homes that have sat 30+ days — those sellers are often ready to deal.
Offer flexible terms like a quick or delayed closing.
The market still moves fast — but it’s no longer a race you can’t win.
Myth #5: “Buying Costs More Than Renting”
Reality: In many Indy neighborhoods, owning is now cheaper than renting.
Example (2025 averages):
Rent for a 2BR apartment in Broad Ripple: $1,600/month
Mortgage for a $250,000 home with 5% down: ~$1,720/month (including taxes + insurance)
That extra $100–$150 a month builds equity and long-term wealth instead of going toward your landlord’s bottom line.
Add in tax deductions, appreciation, and stability — and owning often wins by year two.
Bonus Myth: “You Have to Wait Until Spring to Buy”
Reality: Indianapolis’s winter and fall markets can actually favor buyers.
There’s less competition, motivated sellers, and faster closing timelines.
Plus, sellers listing in December or January usually need to sell — creating opportunity for buyers who stay active.
Timing isn’t about the season — it’s about your readiness and local inventory.
Quick Stats: The 2025 Indy Buyer Landscape
According to Redfin + MIBOR (Q3 2025):
Median home price: $285,000 (up 2.5% YoY)
Median rent: $1,450/month
Average days on market: 31
First-time buyer share: 33% of all purchases
These numbers show Indy remains one of the most accessible metros for homeownership in the Midwest.
FAQs: Debunking Indy Homebuyer Myths
Do I really need a Realtor to buy my first home?
Yes — your agent is paid by the seller, not you. They’ll help you find homes, negotiate terms, and guide you through the process stress-free.
Can I buy with student loans?
Absolutely. As long as your debt-to-income ratio is manageable, lenders can often work with you.
Is now a risky time to buy?
Not in Indy. With moderate prices, job stability, and strong rental demand, it’s one of the country’s most balanced 2025 markets.
Can I buy if I just moved to Indianapolis?
Yes! Local lenders and agents regularly work with newcomers. You’ll just need verifiable income and 30+ days of employment history.
Final Thoughts: Don’t Let Myths Hold You Back
Buying your first home in Indianapolis isn’t about timing the market perfectly — it’s about making an informed move when you’re ready.
If you’ve been on the fence because of old myths or outdated advice, 2025 is a great time to revisit your options.
The Roots Realty Co. team can connect you with local lenders, first-time buyer programs, and off-market listings that make homeownership more accessible than you think.
If you’re renting in Indy right now, you’ve probably seen the headlines:
“Interest rates are too high.”
“Down payments cost 20%.”
“You can’t compete as a first-time buyer.”
Sound familiar?
Let’s be real — most people overestimate what it takes to buy a home. In 2025, opportunities still exist for everyday Indianapolis buyers — especially with local programs, flexible loans, and smart strategy.
Here are the five biggest homebuying myths we hear all the time (and the truth behind them).
Myth #1: “You Need 20% Down to Buy a Home”
Reality: Nope — not even close.
The average first-time buyer in 2025 puts down just 6–8%, according to the National Association of Realtors.
In Indianapolis, there are several low-down-payment options that make buying far more achievable:
FHA Loans: 3.5% down
Conventional 97: 3% down for qualified buyers
VA Loans: 0% down for eligible veterans
IHFA First Place Program: Down payment assistance for Indiana residents
Example: On a $250,000 home, 3.5% down = $8,750 — not $50,000.
For a deeper dive into available programs, check out Indianapolis 2025 First-Time Homebuyer Programs: What You Should Know.
Myth #2: “You Need Perfect Credit”
Reality: You don’t need a spotless 800+ score to qualify.
In fact, most successful buyers in Indy have credit scores between 620 and 740 — and lenders look at more than just your number.
Even if your credit isn’t perfect, you can still qualify by:
✅ Showing stable income
✅ Paying down high-interest debt
✅ Adding a co-borrower
✅ Using lender credit repair or rapid rescore programs
Pro tip: A mortgage pre-approval can tell you exactly what’s possible with your current credit — no guesswork needed.
Myth #3: “Now’s a Bad Time to Buy Because of Interest Rates”
Reality: Rates aren’t the full story — your timing, budget, and market strategy matter more.
Yes, rates have hovered around 6.6–6.8% through 2025, but so have home prices and rent growth. Indy’s rental market continues to climb about 3% annually, meaning waiting could cost more in the long run.
Plus, you can refinance later when rates drop — but you can’t go back in time and buy at today’s prices.
Curious how rates might shift in the coming months? Check out the 2025 Mortgage Rate Update: What Indy Buyers Should Expect.
Myth #4: “You Can’t Compete as a First-Time Buyer”
Reality: First-time buyers are actually more competitive than you think — especially in 2025’s calmer market.
Indy bidding wars have cooled off since 2022, giving new buyers room to negotiate and use creative financing or closing cost assistance to strengthen offers.
Here’s how you can win:
Get pre-approved early (serious buyers get attention).
Work with a local agent who knows which sellers are motivated.
Look for homes that have sat 30+ days — those sellers are often ready to deal.
Offer flexible terms like a quick or delayed closing.
The market still moves fast — but it’s no longer a race you can’t win.
Myth #5: “Buying Costs More Than Renting”
Reality: In many Indy neighborhoods, owning is now cheaper than renting.
Example (2025 averages):
Rent for a 2BR apartment in Broad Ripple: $1,600/month
Mortgage for a $250,000 home with 5% down: ~$1,720/month (including taxes + insurance)
That extra $100–$150 a month builds equity and long-term wealth instead of going toward your landlord’s bottom line.
Add in tax deductions, appreciation, and stability — and owning often wins by year two.
Bonus Myth: “You Have to Wait Until Spring to Buy”
Reality: Indianapolis’s winter and fall markets can actually favor buyers.
There’s less competition, motivated sellers, and faster closing timelines.
Plus, sellers listing in December or January usually need to sell — creating opportunity for buyers who stay active.
Timing isn’t about the season — it’s about your readiness and local inventory.
Quick Stats: The 2025 Indy Buyer Landscape
According to Redfin + MIBOR (Q3 2025):
Median home price: $285,000 (up 2.5% YoY)
Median rent: $1,450/month
Average days on market: 31
First-time buyer share: 33% of all purchases
These numbers show Indy remains one of the most accessible metros for homeownership in the Midwest.
FAQs: Debunking Indy Homebuyer Myths
Do I really need a Realtor to buy my first home?
Yes — your agent is paid by the seller, not you. They’ll help you find homes, negotiate terms, and guide you through the process stress-free.
Can I buy with student loans?
Absolutely. As long as your debt-to-income ratio is manageable, lenders can often work with you.
Is now a risky time to buy?
Not in Indy. With moderate prices, job stability, and strong rental demand, it’s one of the country’s most balanced 2025 markets.
Can I buy if I just moved to Indianapolis?
Yes! Local lenders and agents regularly work with newcomers. You’ll just need verifiable income and 30+ days of employment history.
Final Thoughts: Don’t Let Myths Hold You Back
Buying your first home in Indianapolis isn’t about timing the market perfectly — it’s about making an informed move when you’re ready.
If you’ve been on the fence because of old myths or outdated advice, 2025 is a great time to revisit your options.
The Roots Realty Co. team can connect you with local lenders, first-time buyer programs, and off-market listings that make homeownership more accessible than you think.
If you’re renting in Indy right now, you’ve probably seen the headlines:
“Interest rates are too high.”
“Down payments cost 20%.”
“You can’t compete as a first-time buyer.”
Sound familiar?
Let’s be real — most people overestimate what it takes to buy a home. In 2025, opportunities still exist for everyday Indianapolis buyers — especially with local programs, flexible loans, and smart strategy.
Here are the five biggest homebuying myths we hear all the time (and the truth behind them).
Myth #1: “You Need 20% Down to Buy a Home”
Reality: Nope — not even close.
The average first-time buyer in 2025 puts down just 6–8%, according to the National Association of Realtors.
In Indianapolis, there are several low-down-payment options that make buying far more achievable:
FHA Loans: 3.5% down
Conventional 97: 3% down for qualified buyers
VA Loans: 0% down for eligible veterans
IHFA First Place Program: Down payment assistance for Indiana residents
Example: On a $250,000 home, 3.5% down = $8,750 — not $50,000.
For a deeper dive into available programs, check out Indianapolis 2025 First-Time Homebuyer Programs: What You Should Know.
Myth #2: “You Need Perfect Credit”
Reality: You don’t need a spotless 800+ score to qualify.
In fact, most successful buyers in Indy have credit scores between 620 and 740 — and lenders look at more than just your number.
Even if your credit isn’t perfect, you can still qualify by:
✅ Showing stable income
✅ Paying down high-interest debt
✅ Adding a co-borrower
✅ Using lender credit repair or rapid rescore programs
Pro tip: A mortgage pre-approval can tell you exactly what’s possible with your current credit — no guesswork needed.
Myth #3: “Now’s a Bad Time to Buy Because of Interest Rates”
Reality: Rates aren’t the full story — your timing, budget, and market strategy matter more.
Yes, rates have hovered around 6.6–6.8% through 2025, but so have home prices and rent growth. Indy’s rental market continues to climb about 3% annually, meaning waiting could cost more in the long run.
Plus, you can refinance later when rates drop — but you can’t go back in time and buy at today’s prices.
Curious how rates might shift in the coming months? Check out the 2025 Mortgage Rate Update: What Indy Buyers Should Expect.
Myth #4: “You Can’t Compete as a First-Time Buyer”
Reality: First-time buyers are actually more competitive than you think — especially in 2025’s calmer market.
Indy bidding wars have cooled off since 2022, giving new buyers room to negotiate and use creative financing or closing cost assistance to strengthen offers.
Here’s how you can win:
Get pre-approved early (serious buyers get attention).
Work with a local agent who knows which sellers are motivated.
Look for homes that have sat 30+ days — those sellers are often ready to deal.
Offer flexible terms like a quick or delayed closing.
The market still moves fast — but it’s no longer a race you can’t win.
Myth #5: “Buying Costs More Than Renting”
Reality: In many Indy neighborhoods, owning is now cheaper than renting.
Example (2025 averages):
Rent for a 2BR apartment in Broad Ripple: $1,600/month
Mortgage for a $250,000 home with 5% down: ~$1,720/month (including taxes + insurance)
That extra $100–$150 a month builds equity and long-term wealth instead of going toward your landlord’s bottom line.
Add in tax deductions, appreciation, and stability — and owning often wins by year two.
Bonus Myth: “You Have to Wait Until Spring to Buy”
Reality: Indianapolis’s winter and fall markets can actually favor buyers.
There’s less competition, motivated sellers, and faster closing timelines.
Plus, sellers listing in December or January usually need to sell — creating opportunity for buyers who stay active.
Timing isn’t about the season — it’s about your readiness and local inventory.
Quick Stats: The 2025 Indy Buyer Landscape
According to Redfin + MIBOR (Q3 2025):
Median home price: $285,000 (up 2.5% YoY)
Median rent: $1,450/month
Average days on market: 31
First-time buyer share: 33% of all purchases
These numbers show Indy remains one of the most accessible metros for homeownership in the Midwest.
FAQs: Debunking Indy Homebuyer Myths
Do I really need a Realtor to buy my first home?
Yes — your agent is paid by the seller, not you. They’ll help you find homes, negotiate terms, and guide you through the process stress-free.
Can I buy with student loans?
Absolutely. As long as your debt-to-income ratio is manageable, lenders can often work with you.
Is now a risky time to buy?
Not in Indy. With moderate prices, job stability, and strong rental demand, it’s one of the country’s most balanced 2025 markets.
Can I buy if I just moved to Indianapolis?
Yes! Local lenders and agents regularly work with newcomers. You’ll just need verifiable income and 30+ days of employment history.
Final Thoughts: Don’t Let Myths Hold You Back
Buying your first home in Indianapolis isn’t about timing the market perfectly — it’s about making an informed move when you’re ready.
If you’ve been on the fence because of old myths or outdated advice, 2025 is a great time to revisit your options.
The Roots Realty Co. team can connect you with local lenders, first-time buyer programs, and off-market listings that make homeownership more accessible than you think.