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City of New Albany Homeownership Assistance Program

New Albany Department of Redevelopment / New Albany Redevelopment Commission (NARC) · New Albany, Indiana

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Assistance

$10,000

The maximum the program publishes — not an offer

Income limit

120% AMI

Of area median income; varies by county and household size

Repayment

Forgivable

Forgiven after 5 years

What is 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).

How much assistance does it provide?

City of New Albany Homeownership Assistance Program offers up to $10,000 in assistance.

  • Buyer 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.

Do you have to pay it back?

City of New Albany Homeownership Assistance Program is forgiven after 5 years, so a buyer 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.

Who qualifies?

City of New Albany Homeownership Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: Not specified; lender pre-qualification required
  • A completed homebuyer education course, through New Albany Housing Authority HUD-Certified Housing Counseling Program (Family Self-Sufficiency / FSS); must be completed within the past six months.
  • Residency: Applicant must already be a current resident living within New Albany city limits at time of application.
  • DRAFT (dpa-gap-finder 2026-06-13): pending review. 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). UNCONFIRMED (not in official docs; left blank): minimum credit score, max DTI, maximum purchase price, manufactured-home eligibility, new-construction eligibility, minimum buyer contribution, citizenship requirement, annual funding cap, participating lenders. A Dec 2024 news report cited ~$160,000 initial funding (~16 buyers); cap not confirmed in official docs.

The program excludes

  • Households above 120% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

City of New Albany Homeownership Assistance Program caps the purchase price as follows: Not specified.

  • Eligible property types include Single Family.

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program, through New Albany Housing Authority HUD-Certified Housing Counseling Program (Family Self-Sufficiency / FSS); must be completed within the past six months..

  2. Contact New Albany Department of Redevelopment / New Albany Redevelopment Commission (NARC) to reserve funds

    Funds are reserved through Neighborly Software online application portal; first-come, first-served rolling basis, and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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