What is an Affordable Income Subsidy Grant?
In addition to the down payment assistance currently offered through the First Step and Step Up programs, 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.