Working together with Habitat for Humanity, AHFA purchases mortgage loans from Alabama’s Habitat affiliates. This process allows the affiliates to receive the loan amount up front in a lump sum while AHFA receives the monthly payments from the affiliates for the life of the loan. The affiliate then uses the up-front funds to build more housing for low-income families.
Abiding by AHFA’s enabling legislation, the Habitat affiliate solicits the assistance of a local lender to serve as a conduit for the sale of the loan. The affiliate sells the mortgage to the local bank, which then sells the loan to AHFA. This productive cycle unites the local Habitat affiliates, the lending community and AHFA to give Alabama’s less fortunate families a chance at homeownership.
To find out more information, please contact the Habitat affiliate in your area.