Homeownership Down Payment Assistance Program
Financial Assistance for Homebuyers in Alabama
Available Assistance
The Homeownership Down Payment Assistance Program offers eligible applicants up to $10,000 for the down payment and eligible closing costs, or up to $15,000 for formerly "blighted” property. Assistance funds are forgiven once the borrower resides in the house for five years.
Eligibility Requirements
This program is open to U.S. citizens or legal residents with a valid green card. Only first-time homebuyers, who meet the income requirements and intend to occupy the home as their primary residence are eligible to apply. HUD requires that all the applicants attend at least eight hours of approved, pre-purchase homeowner counseling and education course.
Property Guidelines
Funds from this program can be used to purchase a single-family home, condominium, or manufactured home within Mobile City limits. Existing homes must have a purchase price at or under $141,000, and new constructions must fall at or under $238,000. All properties must pass a Housing Quality Standards (HQS) inspection to ensure that the home meets HUD’s minimum health and safety standards.
Income Limits
1-person household: $34,400
2-person household: $39,300
3-person household: $44,200
4-person household: $49,100
5-person household: $53,050
6-person household: $57,000
7-person household: $60,900
8-person household: $64,850
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but state and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.
Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Alabama
Affordable Income Subsidy Grant
Alabama Housing Finance Authority's Affordable Income Subsidy Grant is available to applicants that fall within the program’s income limits.
Alabama Housing Finance Authority Step Up Program
Step Up helps low- to moderate-income applicants achieve their homeownership goals, by providing down payment assistance. The funds are made available in the form of a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage.
Homeownership Down Payment Assistance Program
Mobile, Alabama's Homeownership Down Payment Assistance Program (HOME DPA) is a flexible gap financing program that helps to provide opportunities for first-time homebuyers to purchase homes that are safe, decent, and affordable.
Mobile County Down Payment Assistance Program
The Mobile County Down Payment Assistance Program provides income-eligible applicants assistance funds between $1,000 and $10,000 in the form of a grant. This money may be put toward the down payment and closing costs associated with the mortgage transaction.
Do you know what's on your credit report?
Learn what your score means.
