City of New Albany Homeownership Assistance Program

City of New Albany Homeownership Assistance Program is a forgivable loan for homebuyers in New Albany, Indiana, administered by New Albany Department of Redevelopment / New Albany Redevelopment Commission (NARC). The City of New Albany Homeownership Assistance Program provides up to $10,000 in financial assistance to eligible first-time homebuyers for down payment, closing costs, and home inspection toward the purchase of a single-family home within New Albany city limits. The assistance is a zero-interest forgivable loan secured by a restrictive covenant lien that forgives 20% per year and is fully forgiven after five years of owner-occupancy. Funds are wired to the title company before closing. Applications are accepted first-come, first-served on a rolling basis. Up to $10,000 toward down payment, closing costs, and inspection. Zero-interest forgivable loan. Forgiven over 5 years (20% per year). 50% reimbursement of home inspection cost. Funds wired to title company before closing. Funding comes from New Albany Redevelopment Commission (local redevelopment / TIF funds via GROWTH initiative).

City of New Albany Homeownership Assistance Program offers up to $10,000 in assistance. Homebuyer contribution: Not specified. Amounts are the program's published maximums, not an offer — New Albany Department of Redevelopment / New Albany Redevelopment Commission (NARC) determines any individual award.

City of New Albany Homeownership Assistance Program is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Prorated repayment if home sold before end of 5-year period; full repayment within 30 days (plus 3% annual interest from closing) if buyer fails to occupy as primary residence within 90 days of closing or fails to maintain primary residence for 5 years. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of New Albany Homeownership Assistance Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. On credit, the program states: Not specified; lender pre-qualification required. A homebuyer education course is required, through New Albany Housing Authority HUD-Certified Housing Counseling Program (Family Self-Sufficiency / FSS); must be completed within the past six months. Residency requirement: Applicant must already be a current resident living within New Albany city limits at time of application. First-time homebuyer required. Must be a current New Albany city resident. Must complete New Albany Housing Authority HUD-certified housing counseling within the past 6 months. Applicant cannot be related to any current City of New Albany employee. Must occupy home as primary residence within 90 days of closing and maintain for 5 years. Application via Neighborly Software portal; request from Grant Manager Keeton Gibson (ext. 151). A Dec 2024 news report cited ~$160,000 initial funding (~16 buyers); cap not confirmed in official docs.

City of New Albany Homeownership Assistance Program limits household income to 120% of the area median income, which varies by county and household size. Household income must not exceed 120% of Area Median Income (AMI) per HUD. Published FY25 limits: 1-person $81,150; 2 $92,750; 3 $104,350; 4 $115,900; 5 $125,200; 6 $134,450; 7 $143,750; 8 $153,000. Income verified using Part 5 (Section 8) Income and Asset guidelines. The limit applies to total household income, not only the borrower’s. The program lists a maximum household size of 8. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of New Albany Homeownership Assistance Program caps the purchase price as follows: Not specified. Eligible property types include Single Family.

City of New Albany Homeownership Assistance Program serves homebuyers purchasing in New Albany, Indiana.

Applications for City of New Albany Homeownership Assistance Program go through New Albany Department of Redevelopment / New Albany Redevelopment Commission (NARC), which publishes the current terms and the application steps on its own site. Funds are reserved through Neighborly Software online application portal; first-come, first-served rolling basis. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.