First Time Home Buyer Grants from The Alabama Housing Finance Authority

Alabama first time home buyer grant

Are you thinking of buying your first home in Alabama? Would you like a free gift of money to help you purchase that first home? Unfortunately, the state of Alabama does not provide free money for its residents who are first time home buyers and need help with the down payment and closing costs as some other states do. However, there is still Federal Grant money available as well as grants from private foundations. This is free money that shouldn’t be passed up! The grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the programs that are available to you.

First Step Grant Program for Alabama Home Buyers

The Alabama Housing Finance Authority (AHFA) provides entry cost assistance in conjunction with the First Step program since down payments are typically the greatest barrier to homeownership. AHFA combines low-interest loan funds with 30-year, FHA, VA, Rural Development or conventional mortgages. Program participants must complete a homebuyer education course to qualify. You can visit their website directly by clicking here.

Here is the contact information for the Alabama Housing Finance Authority:

7460 Halcyon Pointe Drive
Suite 200
Montgomery, AL 36117
Phone: 334-244-9200
Toll-free: 800-325-2432
FAX: 334-244-9214

Federal Grants

Besides the state programs, there are federal funds and grants available to first time buyers in Alabama through the Homes and Communities program of the United States Department of Housing and Urban Development. On their website you’ll find complete grant information, application forms, description of available funds, as well as many other helpful tools.

Every potential home buyer should investigate what they have to offer. You can visit the website by going to US Dept. of Housing and Urban Development. Also,  there is a website that has a complete list of all grant programs available through the United States Federal Government: First time home buyers should plan to spend the required time investigating to determine how many individual grants they may qualify for. You can visit the website for more details.

Other Grants for Alabama Residents

In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available. For your convenience, simply go to this page.

Here is the contact information for the HUD office in Alabama:

Birmingham Field Office
950 22nd Street North
Suite 900
Birmingham, AL 35203-5302
Phone: (205) 731-2617
Fax: (205) 731-2593

There are also these local programs in Alabama:

Birmingham Down Payment Assistance Program (DPAP) (205) 254-2863
Birmingham NHS Inc Down Payment Assistance Program (DPAP) (205) 328-4292
Decatur H.O.M.E. Program (HOME) (256) 351-7755
Tuscaloosa Home Purchase Assistance Program (HPAP) (205) 349-0160

You might also consider this short video:

About Jennifer Cribsly

I'm a former real estate broker who specialized in helping first time buyers be able to purchase a home. Now full time mom, part time real estate owner/investor.
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