Last updated 1/06/26

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

You should have all of the info you need to do it alone, but the form above is to make it easier.

Connect with a DPA team

How Down Payment Assistance Works

I need to give a quick overview of how down payment assistance works. After that, the programs are listed.

With down payment assistance, you'll run into two different types:

  • A grant

  • A loan

A Grant

If we meet the qualifications up front, then it's money that does not need to be repaid.

A Loan

If the down payment assistance comes in the form of a loan, then pay attention to the three different types:

  • Repayable

  • Deferred

  • Forgivable

Repayable is just as most imagine. It charges interest over a certain amount of time, with monthly payments until it's paid off.

Deferred loans usually don't require a monthly payment, and typically don't charge interest. It's due in full when you refinance, sell the home, or when it ceases to be your primary residence.

Forgivable loans will disappear if you meet the criteria, which usually comes down to keeping the home as your primary residence for a specific amount of time.

Okay with that, here are the programs!

Huntsville

Home Ownership Assistance Program (HOAP)

  • Assistance Provided: Up to $24,999 for down payment, closing costs, interest rate buy-down, or principal reduction

  • Eligibility Criteria:
    • First-time buyers or those who haven’t owned in 3 years

    • Household income at or below 80% AMI

    • Must live in the property for at least 5 years

  • Additional Requirements: HUD-approved homebuyer education (e.g., Family Services Center)

  • Repayment/Forgiveness Terms: 0% interest deferred loan, forgiven over 5 years (20% per year)

  • Contact Info: HOAP@HuntsvilleAL.gov | 256-427-5400

  • Website: Huntsville Housing Programs

Birmingham

“Ready to Own” DPA Program

  • Assistance Provided: Up to $10,000 for down payment, closing costs, or interest rate buy-down

  • Eligibility Criteria:
    • Minimum credit score of 600

    • Income ≤ 80% AMI

    • Home must be within Birmingham city limits

  • Additional Requirements:
    • Homebuyer education through Neighborhood Housing Services (NHS)

    • Signed purchase agreement required

  • Repayment/Forgiveness Terms: 5-year forgivable loan at 0% interest

  • Contact Info: Via NHS Birmingham

  • Website: Ready to Own NHS Birmingham

Statewide (Alabama Housing Finance Authority AHFA)

Step Up Program

  • Assistance Provided: 4% of purchase price (max $10,000) as down payment and closing cost aid

  • Eligibility Criteria:
    • Income ≤ $172,800

    • Credit score ≥ 640

    • DTI ≤ 45%

  • Additional Requirements: Homebuyer education required

  • Repayment/Forgiveness Terms: 10-year second mortgage with monthly payments

  • Website: AHFA Step Up

Affordable Income Subsidy Grant

Mobile County DPA Program (Outside Mobile City)

  • Assistance Provided: $1,000 to $25,000 for down payment and closing costs

  • Eligibility Criteria:
    • First-time homebuyers (some exceptions)

    • Income ≤ 80% AMI

    • Property outside Mobile City limits

  • Additional Requirements:
    • Homebuyer training (via Consumer Credit Counseling of Mobile)

    • Must use approved lender

  • Repayment/Forgiveness Terms: 0% deferred loan, forgiven after 5 years

  • Contact Info: 251-574-5060

  • Website: Mobile County DPA

Mobile (City) First-Time Homebuyers DPA

  • Assistance Provided: Up to $15,000 for down payment and closing costs

  • Eligibility Criteria:
    • First-time homebuyers (or not owned in 3 years)

    • Income ≤ 80% AMI

  • Additional Requirements:
    • HUD Housing Quality Standards

    • Homebuyer education course required

  • Repayment/Forgiveness Terms: Deferred loan forgiven after 5 years of occupancy

  • Contact Info: Mobile Community & Housing Development

  • Website: Mobile DPA Info

Decatur H.O.M.E. Program

  • Assistance Provided: Covers 50% of down payment and 100% of closing costs; up to $15,000

  • Eligibility Criteria:
    • First-time homebuyers (no home in last 3 years)

    • Income ≤ 80% AMI

  • Additional Requirements:
    • Must work with Preferred HOME realtor/lender

    • Complete housing counseling

  • Repayment/Forgiveness Terms: Forgivable loan over time with occupancy

  • Contact Info: 256-341-4960

  • Website: Decatur H.O.M.E. Program

Jefferson County Fairway Mortgage Settlement Subsidy

  • Assistance Provided: Subsidized home purchase, refinance, and home improvement loans

  • Eligibility Criteria:
    • Targeted to majority-Black neighborhoods in Birmingham metro

  • Additional Requirements: Contact Fairway Mortgage for specifics

  • Repayment/Forgiveness Terms: Terms vary; program is loan-based

  • Contact Info: Through Fairway Independent Mortgage/MortgageBanc

  • Website: DOJ Fairway Settlement Press Release

Opelika Homebuyers Loan Program

  • Assistance Provided: Up to 50% of required down payment (max $6,000)

  • Eligibility Criteria:
    • First-time homebuyer

    • Income ≤ 80% AMI

    • Property must be within Opelika

  • Additional Requirements:
    • Complete homebuyer education (via Alabama Council of Human Relations)

  • Repayment/Forgiveness Terms: 0% loan, forgivable after 5 years

  • Contact Info: Lisa Harrelson, 334-705-5155, lharrelson@opelika-al.gov

  • Website: Opelika Homeownership Program

Last updated 1/06/26

These programs can only be handled by approved lenders. If you would like help from a local realtor familiar with the programs and lenders, fill out this form here and I will connect you with one.

You should have all of the info you need to do it alone, but the form above is to make it easier.