Homeownership

Open

Alabama Housing Finance AuthorityALFirst-Time Homeowner

Funding: Up to $10,000First mortgage with second-mortgage down payment assistance and closing-cost grantsRollingScope: Statewidestate

Updated: Dec 5, 2025

Summary

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.

Benefits

down payment assistanceclosing cost assistancemortgage assistance

Who Can Apply

individuallow- to moderate-income homebuyer

Eligible Locations

Owner-occupied homes in Alabama financed through AHFA First Step or Step Up programs with participating lenders.

Eligibility

Low- to moderate-income homebuyers in Alabama who meet program income, credit, and purchase-price limits, complete homebuyer education, and work with a participating lender to use an AHFA first mortgage paired with down payment assistance.

Full Description

AHFA’s Homeownership page is the central gateway for Alabama first-time and repeat buyers searching for affordable mortgage and down payment assistance options. The agency partners with a statewide network of approved lenders to offer fixed-rate First Step and Step Up loans, often bundled with second-mortgage down payment assistance of up to 4% of the sales price (capped around $10,000) and grant funds that help with closing costs. Buyers must meet generous income and purchase-price limits, complete homeownership education, and occupy the home as their primary residence. The site explains how AHFA has helped tens of thousands of households since 1980 and outlines the benefits of combining lower rates, down payment assistance, and closing-cost grants to reduce out-of-pocket expenses. It also links to eligibility tools, income and sales-price limit charts, lender resources, and training materials, making it a one-stop resource for Alabama homebuyers looking for vetted, statewide down payment assistance and mortgage solutions.

Verification & Details

Status: Open

Source: ahfa.com

Official source → ahfa.com

Apply on official siteUpdated Dec 5, 2025

Recommended Resource

First-Time Homebuyer Starter Pack (2025 Edition)

A complete first-time homebuyer toolkit: 9 checklists, timelines, grant guidance, worksheets + editable Excel/Google Sheet budget & affordability calculator.

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View digital guide Buy now

More statewide programs

Explore additional grants available throughout Alabama that complement this opportunity.

Downpayment Assistance Program – Home Ownership Opportunities

Open

City of Mobile – Neighborhood DevelopmentALFirst-Time HomeownerForgivable second mortgage loan (5-year)

Updated: Dec 5, 2025

The City of Mobile First Time Home Buyers’ Downpayment Assistance Program helps low- and moderate-income buyers purchase homes inside Mobile city limits by providing forgivable down payment and closing-cost assistance layered with primary mortgages.

Eligible for: Income-eligible first-time homebuyers purchasing an owner-occupied home within Mobile city limits who complete HUD-approved homebuyer educat…

Funding: Up to 10000 dollars typically, up to ~15000 dollars for qualifying or formerly blighted propertiesRollingLocalindividualfirst-time homebuyerdown payment assistanceclosing cost assistance

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Housing – Home Ownership Assistance Program (HOAP)

Open

City of Huntsville – Community DevelopmentALFirst-Time Homeowner5-year deferred forgivable loan

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

View details →

Down Payment Assistance Program – Ready to Own Birmingham

Open

City of Birmingham – Community DevelopmentALFirst-Time Homeowner0% interest 5-year forgivable loan

Updated: Dec 5, 2025

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.

Eligible for: Homebuyers purchasing within Birmingham city limits who have at least a 600 credit score, meet HUD 80% AMI income limits, complete homeowner…

Funding: Up to 10000 dollars for down payment, closing costs or interest-rate buydownRollingLocalindividualfirst-time or eligible homebuyerdown payment assistanceclosing cost assistanceinterest rate buydown

View details →