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Homebuyers

What is an Affordable Income Subsidy Grant?

In addition to the down payment assistance currently offered through Step Up, the HFA Advantage product provides eligible borrowers a grant to help with closing costs. Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for property’s location or, $97,300 annual income (whichever is less).

  • Borrowers at or below 50% of the AMI limits as published by Freddie Mac are eligible for a grant of one percent of the loan amount.
  • Borrowers at or below 80% of the AMI limits as published by Freddie Mac are eligible for a grant of one-half percent of the loan amount. 

Income limits for these grants are determined by the county location of the home: http://www.freddiemac.com/homepossible/eligibility.html.

Additional Information and Qualifications:

  • HFA Advantage conventional loans only
  • For new or existing homes in Alabama
  • Homebuyers must have a credit score of 620 or higher
  • Debt to income ratio must be 45% or lower
  • Homebuyers must complete a homeownership education course
  • Must apply for loan through a participating lender

As with Step Up, this assistance can also be combined with a Mortgage Credit Certificate to make buying a home even more affordable.