Down Payment Assistance Program – Ready to Own Birmingham | Alabama grant

Down Payment Assistance Program – Ready to Own Birmingham

Open

City of Birmingham – Community DevelopmentALFirst-Time Homeowner

Funding: Up to 10000 dollars for down payment, closing costs or interest-rate buydown0% interest 5-year forgivable loanRollingScope: Localstate

Updated: Dec 5, 2025

Summary

Ready to Own Birmingham is the city’s flagship down payment assistance program, providing up to $10,000 in 0% forgivable assistance to help eligible buyers cover down payment, closing costs, and interest-rate buydowns when purchasing a home inside the Birmingham city limits.

Benefits

down payment assistanceclosing cost assistanceinterest rate buydown

Who Can Apply

individualfirst-time or eligible homebuyer

Eligible Locations

Homes within Birmingham city limits, AL

Eligibility

Homebuyers purchasing within Birmingham city limits who have at least a 600 credit score, meet HUD 80% AMI income limits, complete homeownership education, and secure a signed purchase agreement before funds are reserved.

Full Description

Birmingham’s Down Payment Assistance Program—branded as Ready to Own Birmingham—aims to make homeownership more attainable for working families who can support a mortgage but struggle with upfront costs. Administered by the Community Development Department in partnership with Neighborhood Housing Services and participating lenders, the program offers up to $10,000 in homebuyer assistance as a zero-interest loan that is forgiven over five years when the buyer remains in the home. The funds can be used flexibly toward required down payments, eligible closing costs, and even interest-rate buydowns to help keep monthly payments affordable. Borrowers must purchase within the Birmingham city limits, maintain at least a 600 credit score, stay under 80% of area median income, complete an approved homebuyer education course, and secure a signed purchase agreement before funding is reserved. The program’s online page outlines eligibility criteria, partner banks, and an “Apply For Assistance Today” portal, positioning this initiative as a key tool for neighborhood revitalization, wealth building, and increasing homeownership among Birmingham residents.

Verification & Details

Status: Open

Source: birminghamal.gov

Official source → birminghamal.gov

Apply on official siteUpdated Dec 5, 2025

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Downpayment Assistance Program – Home Ownership Opportunities

Open

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Updated: Dec 5, 2025

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Homeownership

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Updated: Dec 5, 2025

Statewide homeownership hub that connects Alabama buyers to below-market 30-year fixed-rate mortgages, down payment assistance, and closing-cost grants through AHFA’s First Step, Step Up, and grant add-ons.

Eligible for: Low- to moderate-income homebuyers in Alabama who meet program income, credit, and purchase-price limits, complete homebuyer education, and …

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Housing – Home Ownership Assistance Program (HOAP)

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Updated: Dec 5, 2025

Huntsville’s Home Ownership Assistance Program (HOAP) provides substantial support—up to $24,999—to help first-time buyers cover down payment, closing costs, interest-rate buydowns, or principal reductions when purchasing a home inside Huntsville city limits.

Eligible for: First-time homebuyers purchasing a primary residence within Huntsville city limits who meet HUD income limits, program underwriting standard…

Funding: Up to 24999 dollars for down payment, closing costs, interest-rate buydown or principal reductionRollingLocalindividualfirst-time homebuyerdown payment assistanceclosing cost assistanceinterest rate buydownprincipal reduction

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