HOUSE hunters often qualify for a mortgage, only to come up short on the down payment.
not that it was easy Market before the demand lasts.
but limited supply and inflation Home buyers are squeezing like never before.
For first time home buyers alabamaThere may be some relief.
Step Up provides down payment assistance, while the grant helps with closing costs.
Below is more information about each program.
How much is available through Step Up?
Step Up is designed for middle-income buyers who can afford a mortgage but need help with the down payment.
The program is offered by Alabama Housing Finance Authority (AHFA).
Down payment funds are covered in a 10-year second mortgage.
Applicants must have completed a homebuyer education course.
Step Up offers 4% of the sale price, up to $10,000.
Who would be eligible?
Applications are for HFA, FHA and VA loans only.
The following homebuyers may qualify:
- earning $130,600 or less
- Areas that earn 80% or less of the median income (AMI) or $130,600 (whichever is lower)
- Those earning more than 80% of the AMI for the property location, but less than $130,600
- Minimum credit score for FHA, VA and HFA loans is 640. Is
- The minimum credit score for HFA Advantage loans with income greater than 80% of the AMI but less than $130,600 is 680. Is
- Debt to income ratio should be 45% or less
How much are the grants?
In addition to Step Up, AHFA offers grants to eligible borrowers to help with closing costs.
Borrowers can qualify if:
- They are 50% or less of the AMI. These borrowers can avail a grant of 1% of the loan amount.
- They are at or below 80% of the AMI. These borrowers can avail 0.5% of the loan amount.
AMI limits are published by Freddie Mac and can be found Here,
What about home buyers living outside of Alabama?
Depending on which state or city you live in, there are several first time home buying programs.
the sun is compile a list,
One of the largest in New Jersey.
Known as the Down Payment Assistance Program, it provides down payment assistance of up to $10,000 to first-time home buyers.
That amount is offered as a 0% interest loan that is waived off over five years.
A more generous program is offered in North Carolina.
The program, First Home Advantage, offers up to $8,000 in down payment assistance.
For more in property, Five tips to prepare you to hire,
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