If you’re a first-time home buyer and Alabama is your sweet home, you’re in luck. National programs are available to make owning a first home more affordable. And, since 1980, Alabama Housing Finance Authority has helped more than 70,000 families — many of them first-time home buyers — afford a home through its loan programs.
Here’s what to know about national and state programs available to Alabamians and what you need to qualify.
National first-time home buyer programs
These national mortgage programs may be used by first-time home buyers to make home-owning more affordable in any of the 50 states.
Alabama first-time home buyer programs
AHFA offers first-time and repeat home buyers affordable home loans for buying a new or existing home, but not for refinancing. Down payment assistance programs eliminate the need to save for a big cash down payment. Reduced mortgage insurance payments may also be possible. And Mortgage Credit Certificates cut your federal income tax, leaving you more income to apply toward qualifying for a mortgage.
AHFA highlights and eligibility requirements
HIGHLIGHTS
- 3% down payment assistance.
- Mortgage insurance discount with a conventional loan.
- Federal tax credits available.
ELIGIBILITY
- 620 minimum credit score.
- Income and purchase-price limits apply.
- Move in within 60 days after closing.
» MORE: Tips for first-time home buyers
» MORE: Find the best mortgage lenders for first-time home buyers
Your next step
If one of these state programs seems right for you, get started by reaching out to a participating lender. They can answer questions, identify target areas, calculate the assistance you can get and help you apply. After that, it’s time to get ready for your homebuying education course, a Step Up requirement, before the mortgage closes.
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