Assistance program · Alabama
Affordable Income Subsidy Grant
Alabama state authority grant for closing costs with an HFA Advantage conventional loan: 1% of the loan if you earn up to 50% of the area median, or half a percent if you earn 50% to 80%
At a glance
- Kind of help
- Grant
- Grant you never repay
- First-time buyer?
- Not stated — ask
- The source does not say whether you must be a first-time buyer
- Minimum credit score
- 640
- The minimum the source asks for; a lender may ask for more.
- Checked
- November 5, 2026
- Against the program's official page.
Type of help
What it is
- Grant you never repay
What it gives
Source text
the HFA Advantage product provides eligible borrowers a grant to help with closing costs. … Borrowers at or below 50% of the AMI limits as published by Freddie Mac are eligible for a grant of one percent of the loan amount. Borrowers at 50.01-80% of the AMI limits as published by Freddie Mac are eligible for a grant of one-half percent of the loan amount. A summary of what the program publishes; not a loan offer or advice. Amounts, limits and funding change without notice.
At a glance
Who qualifies
Each answer comes from the program's page. "Not stated — ask" means its page doesn't make it clear: ask before you apply.
Source text
Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for the property’s location. … Income limits for these grants are determined by the county location of the home. … HFA Advantage conventional loans only … For new or existing homes in Alabama … Homebuyers must have a credit score of 640 or higher … Debt to income ratio must be 45% or lower … Homebuyers must complete a homeownership education course … Must apply for loan through a participating lender - First-time buyers only Not stated — ask
- Homebuyer course required Yes
- Minimum credit score 640
- Income limit Per the program table (by county and household size)
- Price limit Per the program table
- Mortgages it works with Conventional
- Immigration requirement Not stated — ask
- Accepts ITIN? Not stated — ask
- Spanish materials Not stated — ask
- Program status The source does not say whether it is open — ask
- Where it applies All of Alabama
What its page says about being open
Its page does not say whether the program is open or has funds. Ask the lender or the agency before counting on it. Read on the official page on November 5, 2026.
Your area in numbers
What buying costs in Alabama
The program covers all of Alabama. The first column is Alabama's figure; the second runs from the lowest to the highest among its counties. Limits change by county: check yours.
The typical home value ($209,900) fits within Alabama's FHA limit ($541,287).
The program sets its income limit in its own table. For reference, HUD's low-income limit for 4 people in Alabama is $61,900.
| Figure | Alabama | Lowest to highest | Source |
|---|---|---|---|
| Typical home value | $209,900 | $81,200 (Greene County) to $326,100 (Shelby County) | U.S. Census Bureau |
| FHA limit (one-unit home) | $541,287 | $541,287 in all 67 counties | HUD |
| Conforming limit (one-unit home) | $832,750 | $832,750 in all 67 counties | FHFA |
| HUD low income (80%), household of 4 | $61,900 | $59,350 (Barbour County) to $92,100 (Madison County) | HUD |
Sources: American Community Survey (ACS) 5-year estimates (Average 2020–2024) · FHA mortgage limits (HUD) (2026 data) · Conforming loan limits (FHFA) (2026 data) · Income Limits (HUD) (Fiscal year 2026)
Step by step
How to use it, step by step
Each step comes from what the program's page says. What its page leaves out is further down, in the questions.
Find a participating lender-
Ask first whether it is open
Its page does not say whether it is open or still has funds. That is the first thing to ask.
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Find your county in the income table
The limit changes with the county and the number of people in your household. Count the income of everyone the program asks you to add.
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Take the homebuyer course
The program requires it. HUD-approved housing counseling agencies teach courses. Alabama has 25 agencies on HUD's list, and 8 serve people in Spanish.
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Pick a mortgage it works with
According to its page, the help is used together with a Conventional loan. Each loan type has its own requirements.
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Check your score: the published minimum is 640
That is the program's minimum; the lender may ask for more. If you are short, a housing counselor can explain how to raise it.
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Find a participating lender: state programs do not take applications directly; the lender reserves the assistance while processing your mortgage.
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Compare the total cost before you sign
Ask about the total cost. The mortgage with assistance may carry a higher rate than without it, and some programs charge for the course or a fee.
Before you call
What to ask
Its page leaves 7 points unclear. Write them down for when you talk to Alabama Housing Finance Authority.
What its page does not say
- Is it open now, and does it still have funds?
- What is the most it gives, and how is it calculated?
- Is it only for first-time buyers?
- Is there a maximum price for the home?
- Which immigration status or residency documents do you ask for?
- Do you accept an ITIN?
- Do you have materials or staff in Spanish?
Worth asking for this kind of help
- Is there any case in which the grant has to be paid back?
Against the others
How it compares with Alabama's other programs
The 3 programs we checked in Alabama, with the same fields from their official pages. "Doesn't say" means its page does not make it clear.
It is one of 2 programs in Alabama, out of 3, whose page does not say whether you must be a first-time buyer. Its page publishes no amount with a figure; 2 of the 3 do. It is the only program in Alabama on our list with "grant" help. 2 of the 3 require a homebuyer course, this one included.
Swipe the table to see every column.
| Program | Kind of help | Published amount | First-time buyers only | Course required | Accepts ITIN | Where it applies |
|---|---|---|---|---|---|---|
| Affordable Income Subsidy Grantthis program | Grant | Not published | Doesn't say | Yes | Doesn't say | Statewide |
| Step Up | Repayable | Up to 4% of the price, capped at $10,000 | Doesn't say | Yes | Doesn't say | Statewide |
| First Step Mortgage Revenue Bonds | Repayable | Up to 4% of the price, capped at $10,000 | No | Doesn't say | Doesn't say | Statewide |
Sources
How we checked this program
We read the program's official pages on November 5, 2026 and copied their text as it appears on them. We add no amounts or requirements those pages do not state, and a program is listed as open or closed only when its page says so.
We check every program again. If more than 180 days pass without a check, the page says so.
Get free help applying
A HUD-approved housing counselor explains the program's requirements, goes over your numbers and tells you what to ask the lender. They do not sell loans.
Find a counselor (HUD)Read before you apply
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Help and programs
Down payment assistance: how it works
What down payment assistance is, the types that exist (grant, forgivable or deferred second loan, tax credit), who qualifies and where to find it.
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Help and programs
Homebuyer education courses: when you need one
What a homebuyer education course is, when Fannie Mae, Freddie Mac and assistance programs require one, and where to take it for free or in Spanish.
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Mortgage loans
Conventional loan: 3% down, PMI and credit scores
How a conventional loan works: HomeReady and Home Possible from 3% down, the credit score Fannie Mae requires, PMI and when the law ends it.
Your county
Price and income limits depend on the county. Your county page has the typical value, the FHA limit and the counseling agencies that can walk you through the application.