State Program
Affordable Income Subsidy Grant – Alabama
The Affordable Income Subsidy Grant provides grants to low- and moderate-income homebuyers to reduce upfront mortgage costs.
Program Details
**The Affordable Income Subsidy Grant** assists buyers by providing grants based on income that can be used toward down payment or closing costs. This *may support* those earning at or below 80% of the Area Median Income (AMI) and is **administered by AHFA**. When combined with other AHFA programs, it maximizes affordability for first-time buyers.
**Maximize Your Subsidy:**
- Grants are tiered to favor those with the greatest need.
- You do not have to repay the subsidy if you stay in the home for the required time.
- Many buyers pair this grant with FHA loans for better affordability.
- Be sure to review AMI charts for your county.
**Maximize Your Subsidy:**
- Grants are tiered to favor those with the greatest need.
- You do not have to repay the subsidy if you stay in the home for the required time.
- Many buyers pair this grant with FHA loans for better affordability.
- Be sure to review AMI charts for your county.
Eligibility Requirements
- Must meet income limits based on Area Median Income
- Must purchase a home in Alabama
- Minimum credit score of 640
- Debt-to-income ratio must be 45% or lower
- Must complete a homebuyer education course
- Must purchase a home in Alabama
- Minimum credit score of 640
- Debt-to-income ratio must be 45% or lower
- Must complete a homebuyer education course
Program Benefits
- Grants for down payment or closing costs
- Reduces upfront mortgage expenses
- Can be combined with Step Up and MCC
- Reduces upfront mortgage expenses
- Can be combined with Step Up and MCC
How to Apply
1. Determine eligibility based on income
2. Complete a homebuyer education course
3. Apply through a participating lender
4. Submit documentation
5. Receive grant at closing
2. Complete a homebuyer education course
3. Apply through a participating lender
4. Submit documentation
5. Receive grant at closing
Program Overview
Category
State Program
Maximum Assistance
$3.5
Official Program Website
Information about this program is provided as a resource and may be subject to change. Always verify details with the official program website.
Important Note
Program availability, terms, and requirements may vary by lender and location. Additionally, programs are subject to change based on policy updates and market conditions. Always consult with a mortgage professional for the most current information and to determine eligibility for specific programs.