Housing – Home Ownership Assistance Program (HOAP) | Alabama grant

Housing – Home Ownership Assistance Program (HOAP)

Open

City of Huntsville – Community DevelopmentALFirst-Time Homeowner

Funding: Up to 24999 dollars for down payment, closing costs, interest-rate buydown or principal reduction5-year deferred forgivable loanRollingScope: Localstate

Updated: Dec 5, 2025

Summary

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.

Benefits

down payment assistanceclosing cost assistanceinterest rate buydownprincipal reduction

Who Can Apply

individualfirst-time homebuyer

Eligible Locations

Homes within City Limits of Huntsville, Alabama

Eligibility

First-time homebuyers purchasing a primary residence within Huntsville city limits who meet HUD income limits, program underwriting standards, and agree to occupy the home for at least five years while the assistance is forgiven; completion of homebuyer education and program application through the city is required.

Full Description

The City of Huntsville’s Housing page highlights several Community Development tools, with the Home Ownership Assistance Program (HOAP) as a cornerstone for first-time homebuyers. HOAP is designed to stabilize lower-income neighborhoods and expand access to homeownership by offering up to $24,999 in assistance, calculated based on the homebuyer’s financial need. The funds can be applied to down payment requirements, closing costs, interest-rate buydowns, or direct principal reduction to create a more affordable monthly payment. Assistance is structured as a five-year deferred payment loan that is forgiven at a rate of 20% per year, provided the buyer occupies the property as their primary residence for the full five-year period. Buyers must meet income and eligibility thresholds, purchase within Huntsville city limits, and comply with HUD-aligned program rules. The page also points applicants to a dedicated online portal where they can submit a HOAP application and provides contact information for the Community Development office, positioning HOAP as a high-impact down payment assistance resource for Huntsville residents.

Verification & Details

Status: Open

Source: huntsvilleal.gov

Official source → huntsvilleal.gov

Apply on official siteUpdated Dec 5, 2025

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