Alabama First-Time Homebuyer Grant
As an approved participating lender with Alabama Housing Finance Authority (AHFA), we are pleased to offer the new first-time homebuyer grant available to eligible borrowers in Alabama.
AHFA and Freddie Mac have teamed up to offer the Freddie Mac Home Possible Advantage conventional loan product. This loan only requires 3% down, but you can also combine this with the AHFA Step Up Loan where you can get down payment assistance for the 3%, making it essentially 100% financing towards the purchase price.
One of the benefits to the Home Possible Advantage product is that borrowers may be eligible for a grant to help with closing costs, in addition to the down payment assistance mortgage currently offered through Step Up. Borrowers with qualifying income at or below 50% of the Area Median Income (AMI) limits (as published by Freddie Mac) are eligible for an Affordable Income Subsidy (AIS) grant in the amount of $2,500. Borrowers with qualifying income between 50.01% - 80.00% of AMI limits are eligible for a grant of $1,500.
Income limits for these grants are determined by the county location of the home: http://www.freddiemac.com/homepossible/eligibility.html .
As with Step Up, this assistance can also be combined with a Mortgage Credit Certificate to make buying a home even more affordable and may provide you up to $2000 or more in additional tax credits every year as long as you have the mortgage!
We're here to help see if you qualify for this new grant, as well as any of these other amazing options. Reach out to our team at 256-734-6012 or you can Apply Online anytime.