What is an Affordable Income Subsidy Grant?
In addition to the down payment assistance currently offered through First Step & 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 the property’s location.
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 50.01-80% 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.
Additional Information and Qualifications:
HFA Advantage conventional loans only
For new or existing homes in Alabama
Homebuyers must have a credit score of 640 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
Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.