Alabama

Programs come and go over time, change terms, and receive more or less money for participants. After reviewing programs that you think might be best for you, contact a knowledgeable lender to confirm current details.

Affordable Income subsidy grant

What is an Affordable Income Subsidy Grant?

In addition to the down payment assistance currently offered through the First Step and Step Up programs, the HFA Advantage product provides eligible borrowers a grant to help with closing costs. Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for the property’s location.

• Borrowers at or below 50% of the AMI limits as published by Freddie Mac are eligible for a grant of one percent of the loan amount.

• Borrowers at 50.01-80% of the AMI limits as published by Freddie Mac are eligible for a grant of one-half percent of the loan amount. 

Income limits for these grants are determined by the county location of the home.

Additional Information and Qualifications:

• HFA Advantage conventional loans only
• For new or existing homes in Alabama
• Homebuyers must have a credit score of 640 or higher
• Debt to income ratio must be 45% or lower
• Homebuyers must complete a homeownership education course

• Must apply for loan through a participating lender

Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.

Home Ownership Opportunities

Mobile Down Payment Assistance

The City of Mobile’s First Time Home Buyers’ Program is a homeownership program designed to help income eligible households with down payment and closing costs assistance to purchase a home within the City of Mobile.  All applicants accepted to participate in this program must complete a pre-purchase homeowner counseling and education course.  Down Payment Assistance funds are forgiven provided the applicant resides in the house for five years.  For City-sponsored single family developments, the City may provide a second mortgage to make the home more affordable.  Homes must pass a Housing Quality Standards (HQS) inspection to ensure the home meets HUD’s minimum health and safety standards.  Funding for this program is made available to the City of Mobile’s Community & Housing Development Department through the U.S. Department of Housing and Urban Development (HUD).