See programs you qualify for
Get Matched Free →Homebuyer Programs in New Albany, IN (2026)
New Albany is a city of over 37,000 residents and the county seat of Floyd County, Indiana, located along the Ohio River directly across from Louisville, Kentucky. With a median home price around $240,000, New Albany offers affordable homeownership with convenient access to the Louisville metropolitan job market. While the city does not have its own down payment assistance program, buyers benefit from Indiana state programs through IHCDA, the FHLBank Indianapolis Launch grant of up to $20,000, and two important regional nonprofits. Community Action of Southern Indiana (CASI) serves Floyd County with an Individual Development Account program that provides matched savings of up to $4,500 toward a home purchase. Habitat for Humanity of Clark and Floyd Indiana builds affordable homes in the area. Between state forgivable loans and local nonprofit resources, first-time buyers in New Albany may be able to reduce their upfront costs by $10,000 or more.
State Programs in Indiana
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| IHCDA First Place Program | Forgivable Loan | Up to 6% of the purchase price | Yes | View → |
| IHCDA Mortgage Credit Certificate (MCC) | Tax Credit | Up to $2,000 per year in federal tax credits | Yes | View → |
| IHCDA Next Home Program | Forgivable Loan | Up to 3.5% of the purchase price (FHA) or 3% (Conventional) | No | View → |
- Type:
- Forgivable Loan
- Amount:
- Up to 6% of the purchase price
- First-time only:
- Yes
- Type:
- Tax Credit
- Amount:
- Up to $2,000 per year in federal tax credits
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to 3.5% of the purchase price (FHA) or 3% (Conventional)
- First-time only:
- No
Federal Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| FHA Loans | Government-Insured Mortgage | Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026) | No | View → |
| FHLBA Community Partners Product | Forgivable Loan | Up to $20,000 in home purchase assistance for down payment and closing costs | No | View → |
| FHLBA First Time Homebuyer Product | Forgivable Loan | Up to $17,500 in home purchase assistance for down payment and closing costs | Yes | View → |
| FHLBA Workforce Housing Plus+ | Forgivable Loan | Up to $15,000 in home purchase assistance for down payment and closing costs | No | View → |
| Good Neighbor Next Door (HUD) | Government Property Sale Program | 50% discount off the list price of HUD-owned homes | Yes | View → |
| Home Possible Mortgage (Freddie Mac) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HomeReady Mortgage (Fannie Mae) | Government-Guaranteed Mortgage | Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment | No | View → |
| HUD $100 Down Program | FHA-Financed HUD REO Purchase | Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs. | No | View → |
| USDA Rural Development Loans | Government-Guaranteed Mortgage | 100% financing (no down payment required); loan amount up to appraised value | No | View → |
| VA Loans | Government-Guaranteed Mortgage | No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026) | No | View → |
- Type:
- Government-Insured Mortgage
- Amount:
- Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $20,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Forgivable Loan
- Amount:
- Up to $17,500 in home purchase assistance for down payment and closing costs
- First-time only:
- Yes
- Type:
- Forgivable Loan
- Amount:
- Up to $15,000 in home purchase assistance for down payment and closing costs
- First-time only:
- No
- Type:
- Government Property Sale Program
- Amount:
- 50% discount off the list price of HUD-owned homes
- First-time only:
- Yes
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
- First-time only:
- No
- Type:
- FHA-Financed HUD REO Purchase
- Amount:
- Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- 100% financing (no down payment required); loan amount up to appraised value
- First-time only:
- No
- Type:
- Government-Guaranteed Mortgage
- Amount:
- No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
- First-time only:
- No
Nonprofit Programs
| Program Name | Type | Amount | First-Time Only | Details |
|---|---|---|---|---|
| CASI Individual Development Account (IDA) Program | Grant | Up to $4,500 in matched savings (3:1 match on personal savings) | No | View → |
| FHLBank Indianapolis Launch Down Payment Assistance | Grant | Up to $20,000 | Yes | View → |
| Habitat for Humanity Clark & Floyd Indiana Homeownership | Zero-Interest Loan | Affordable mortgage on a Habitat-built home with zero-interest terms over 25 years | No | View → |
- Type:
- Grant
- Amount:
- Up to $4,500 in matched savings (3:1 match on personal savings)
- First-time only:
- No
- Type:
- Grant
- Amount:
- Up to $20,000
- First-time only:
- Yes
- Type:
- Zero-Interest Loan
- Amount:
- Affordable mortgage on a Habitat-built home with zero-interest terms over 25 years
- First-time only:
- No
How to Apply
Review your finances and check your credit report for free at AnnualCreditReport.com. Most programs require a minimum credit score of 640 and income at or below area limits for Floyd County.
Complete a HUD-approved homebuyer education course. CASI offers a First Time Homebuyers Program in Clark, Floyd, and Harrison counties that covers credit improvement, mortgage options, the buying process, and closing procedures. Contact CASI at 812-288-6451.
Research available programs. New Albany buyers can access IHCDA First Place (up to 6% of purchase price), IHCDA Next Home (up to 3.5%), the Mortgage Credit Certificate for annual tax savings, and the FHLBank Launch grant (up to $20,000). CASI offers matched savings through their IDA program, and Habitat for Humanity of Clark and Floyd Indiana builds affordable homes.
Connect with an IHCDA-participating lender who can help you apply for state down payment assistance alongside your mortgage. A list of approved lenders is available at in.gov/ihcda.
Get pre-approved and begin your home search in New Albany. Work with your lender to confirm which programs you qualify for based on your income, credit score, and household size.
Once you go under contract, your lender will finalize assistance applications. Keep all documentation organized and respond promptly to requests to ensure a smooth closing.