For 2026, VA funding fees range 1.25%-3.3% by down payment and use; 10%+ disabled veterans are exempt. Indiana added new tax breaks too.
By John Downey, Certified Appraiser & Top Realtor
Where you live is my business — and for the men and women who've served, helping you use every benefit you've earned is my privilege.
I get questions about VA loans from military families relocating to Crawfordsville and West Central Indiana more than almost anything else. If you want the fuller step-by-step walkthrough of using a VA loan here — including Indiana Heroes Home Advantage and the IHCDA First Place program — see The Complete Guide to Using a VA Loan to Buy a Home in Crawfordsville, Indiana. Here, I want to focus on what specifically changed for 2026.
The core VA loan advantage
- No down payment required in most cases
- No monthly private mortgage insurance (PMI) — ever
The VA funding fee — and how to reduce or avoid it
For 2026: first-time use at 0% down runs 2.15% of the loan amount; subsequent use at 0% down runs 3.3%; 5% or more down drops it to 1.5%; 10% or more down drops it to 1.25%. Veterans with a service-connected disability rating of 10% or higher are exempt from the funding fee entirely, as are Purple Heart recipients on active duty and surviving spouses receiving Dependency and Indemnity Compensation.
What just changed for Indiana veterans in 2026
Governor Mike Braun signed House Enrolled Act 1210 on March 12, 2026, replacing the old assessed-value deduction system with a new tax credit structure. Veterans with a 100% disability rating now qualify for a full property tax exemption. Veterans rated 10–90% disabled receive a flat $350 annual credit instead of the old value-based deduction. Every veteran needs to register with their county auditor using State Form 12662. This is one piece of a bigger picture — I lay out all five ways state and federal benefits stack for military buyers in Indiana Housing Programs for Military Buyers.
Getting started: the Certificate of Eligibility
You'll need a Certificate of Eligibility (COE) before a lender can process a VA loan — request it through VA.gov or have your lender pull it.
A word on Military on the Move®
I offer eligible buyers a 20% rebate of my commission at closing through Military on the Move®, stacked on top of whatever VA loan benefits you're using.
Bottom line
VA loans remain one of the best tools available for buying a home in West Central Indiana, and 2026 brought real changes worth understanding. And if you're relocating here rather than buying near a base you're already stationed at, my Veteran's Guide to Military Relocation covers what Crawfordsville actually offers.
Curious what you're eligible for? Check your Military on the Move® eligibility or reach out directly.
