Programs For 1st Time Buyers In AL
First time home buyers in Alabama have many options available to them for help in purchasing their first residence. The Alabama Housing Finance Authority (AHFA) provides some very sizable programs for Alabama residents seeking to purchase their first home.
Here are some highlights:
AHFA Makes Homeownership Possible.
Do you dream of owning a home? Do you think you cannot afford it? Since 1980, AHFA’s versatile, affordable programs have helped nearly 110,000 families purchase a home.
We offer two options that fit the needs of many buyers.
The Step Up program is available to homebuyers who earn less than $97,300 and meet standards for creditworthiness. The program offers a competitive 30-year fixed interest rate and a down payment assistance option.
Mortgage Credit Certificates
A Mortgage Credit Certificate (MCC) reduces the amount of federal income tax homebuyers must pay, which in turn frees up income to qualify for a mortgage. Borrowers can claim a tax credit up to 50 percent of the mortgage interest paid per year, capped at $2,000 annually. It is a dollar-for-dollar reduction against a borrower’s federal tax liability. To receive immediate savings from the MCC, the borrower must file a revised W-4 withholding form with their employer, which should reduce the yearly tax contribution and increase the borrower’s take-home pay. Borrowers can also choose to realize the savings once a year through the federal income tax return to be filed.
For complete details on these programs, including contact information and instructions on how to apply, please visit this AHFA programs page.
More Alabama First Time Buyer Programs
In addition to the above homebuyer programs offered by AHFA, there are local housing agencies in various towns, cities and counties throughout the state that provide financial assistance to 1st time property buyers as well. To determine how many programs near you which you might qualify for, please visit local first time home buyer programs in Alabama.