Alabama first time home buyer grants and loan programs - The North Alabama Individual Development Account Program (NAIDAP) has a program which offers first time home buyer education and programs to help low-income buyers buy their first home.
The NAIDAP assists families that may not currently be ready for home ownership, but can become ready within two to three years. The program includes preparation for first time buyers which includes credit counseling, financial literacy training and home ownership education. The program is for residents of Madison, Morgan and Limestone counties.
In addition, the American Dream Downpayment Initiative (ADDI) is available from the City of Huntsville Community Development Department and offers home purchase downpayment or closing cost assistance. The assistance is available on a first come, first served basis, until funds run out. The assistance includes $5000, which is is provided at time of home loan closing that can only be used for the downpayment and/or closing costs for buying a single family home. The $5000 is a 0% interest deferred loan with no monthly payments and the loan is gradually forgiven by 20% per year and is totally forgiven after the buyer has lived in the home for five years.
Check out the Alabama first time home buyer website to learn more.
The Alabama Housing Finance Authority (AHFA) also has programs available for first time buyers, including mortgage credit certificates.
Check out the AHFA website to learn more.