Alabama offers 16 down payment assistance programs to help homebuyers cover their down payment and closing costs. This includes 3 grant programs that never require repayment. Programs range from statewide options administered by the state housing finance agency to local city and county programs targeting specific communities.
Maximum assistance available reaches $25,000 through the most generous program. Credit score requirements start as low as 600 for some programs. Most programs require the home to be your primary residence, and many require homebuyer education.
Top Down Payment Assistance Programs in Alabama
Highlighted programs that combine high assistance amounts with statewide or major-metro availability. See the full list below.
Mobile County DPA Program
verifyMobile County
$1,000 to $25,000
First Time Home Buyers Program
openMobile County Commission
$25,000
Home Ownership Assistance Program (HOAP)
verifyCity of Huntsville
UP TO $24,999
Down Payment Assistance
openConfederated Tribes of Grand Ronde - Housing
20 (max $20,000)
Mobile City First-Time Homebuyers DPA
verifyMobile Community & Housing Development
UP TO $15,000
Grant Programs (3)
Grants are the gold standard of down payment assistance. You receive the money and never have to pay it back.
First Time Home Buyers Program
Mobile County Commission
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family
- Max Price
- $275,000
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
- Assistance Type
- grant
- Profession
- All
- Homebuyer Ed.
- Yes
Down Payment Assistance
Confederated Tribes of Grand Ronde - Housing
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
- Assistance Type
- grant
- Profession
- All
- Homebuyer Ed.
- Yes
Affordable Income Subsidy Grant
Alabama Housing Finance Authority (AHFA)
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- 80% AMI
- Min Credit Score
- 640+
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- HFA Advantage
- Assistance Type
- grant
- Profession
- all
- Homebuyer Ed.
- Yes
Repayment Terms
True grant - no repayment
Additional Requirements
Same requirements as Step Up program
Notes
Max DTI: 45%
Forgivable Loans (6)
Forgivable loans are forgiven after a set period of living in the home. If you stay, you keep the money.
Mobile County DPA Program
Mobile County
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- 80% AMI
- Min Credit Score
- Not specified
- Property Types
- single-family
- Max Price
- $219,000 (existing homes) / $290,000 (new construction); HUD HOME FY2026 limits
Quick Facts
- Loan Types
- Conventional, FHA, USDA, VA
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Interest Rate
0%
Repayment Terms
0% deferred loan, forgiven after 5 years
Additional Requirements
Homebuyer training via Consumer Credit Counseling of Mobile. Must use approved lender
Notes
Some exceptions apply. Occupancy requirement: 5 years
Home Ownership Assistance Program (HOAP)
City of Huntsville
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- 80% AMI
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Interest Rate
0%
Repayment Terms
0% interest deferred loan, forgiven over 5 years (20% per year)
Additional Requirements
HUD-approved homebuyer education (e.g., Family Services Center)
Notes
Or haven't owned in 3 years. Occupancy requirement: 5 years minimum
Mobile City First-Time Homebuyers DPA
Mobile Community & Housing Development
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- 80% AMI
- Min Credit Score
- Not specified
- Property Types
- single-family, condo, modular, duplex
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Repayment Terms
Deferred loan forgiven after 5 years of occupancy
Additional Requirements
Homebuyer education course required
Notes
Or not owned in 3 years. Occupancy requirement: 5 years
Decatur H.O.M.E. Program
City of Decatur
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- 80% AMI
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Repayment Terms
Forgivable loan over time with occupancy
Additional Requirements
Must work with Preferred HOME realtor/lender. Complete housing counseling
Notes
No home ownership in last 3 years. Occupancy requirement: Required (duration varies)
Ready to Own DPA Program
Neighborhood Housing Services (NHS) Birmingham
Eligibility Snapshot
- First-Time Buyer
- Not specified
- Income Limit
- 80% AMI
- Min Credit Score
- 600+
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Interest Rate
0%
Repayment Terms
5-year forgivable loan at 0% interest
Additional Requirements
Homebuyer education through NHS. Signed purchase agreement required
Opelika Homebuyers Loan Program
City of Opelika
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- 80% AMI
- Min Credit Score
- Not specified
- Property Types
- Not specified
- Max Price
- Not specified
Quick Facts
- Loan Types
- Not specified
- Assistance Type
- forgivable loan
- Profession
- all
- Homebuyer Ed.
- Yes
Repayment Terms
0% loan, forgivable after 5 years
Additional Requirements
Complete homebuyer education via Alabama Council of Human Relations
Notes
Occupancy requirement: 5 years
Deferred Payment Loans (7)
Deferred loans require no monthly payments while you live in the home. You repay when you sell, refinance, or move out.
First Step
Alabama Housing Finance Authority
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- $665,173
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Not specified
Repayment Terms
Deferred Payment - Repayable at sale or refinance
Step Up
Alabama Housing Finance Authority
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Townhouse/PUD, Condominium
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Repayment Terms
Deferred Payment - Repayable at sale or refinance
Down Payment Assistance Program
City of Birmingham
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Interest Rate
None
Repayment Terms
Forgivable - Fully forgiven at closing or forgiven on a schedule
Down Payment Assistance Program
Mobile County
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +4
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Interest Rate
None
Repayment Terms
Deferred Payment - Repayable at sale or refinance
Decatur H.O.M.E. (Home Ownership Made Easier)
Decatur - Community Development
Eligibility Snapshot
- First-Time Buyer
- Yes
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, Condominium, Townhouse/PUD
- Max Price
- Not specified
Quick Facts
- Loan Types
- Freddie Mac, Fannie Mae, FHA, VA, USDA-RD +1
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Repayment Terms
Deferred Payment - Repayable at sale or refinance
Chenoa Fund FHA Down Payment Assistance Forgivable
CBC Mortgage Agency (Chenoa Fund)
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
- Max Price
- $766,550
Quick Facts
- Loan Types
- FHA
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Chenoa Fund FHA Down Payment Assistance Repayable
CBC Mortgage Agency (Chenoa Fund)
Eligibility Snapshot
- First-Time Buyer
- No
- Income Limit
- Not specified
- Min Credit Score
- Not specified
- Property Types
- Single-Family, 2 units, Leasehold, Condominium, Townhouse/PUD, Manufactured
- Max Price
- $766,550
Quick Facts
- Loan Types
- FHA
- Assistance Type
- deferred loan
- Profession
- All
- Homebuyer Ed.
- Yes
Interest Rate
Note rate 1% above the first mortgage note rate
Repayment Terms
This loan does require a monthly payment on the second mortgage.
How to Apply for Down Payment Assistance in Alabama
-
1
Check Your Eligibility
Use our free eligibility tool to see which programs match your situation. Enter your state, city, income, and target home price.
-
2
Contact the Program Administrator
Each program has its own application process. Visit the program website or call the administering agency to get started. Many programs work through approved lenders.
-
3
Get Pre-Approved with a Participating Lender
Not every lender participates in every DPA program. Work with a lender who is approved for the programs you want. The program administrator can provide a list of approved lenders.
-
4
Complete Homebuyer Education (If Required)
Many programs require a HUD-approved homebuyer education course. Online options through eHome America and Framework are accepted by most programs.
-
5
Close & Move In
DPA funds are typically disbursed at closing alongside your first mortgage. Your lender coordinates the DPA program paperwork as part of the loan process.
Frequently Asked Questions
How much down payment assistance can I get in Alabama?
Up to $25,000 through available programs in Alabama. Multiple programs can often be combined for even more assistance. The exact amount depends on your income, location, and the specific program requirements.
Do I need to be a first-time homebuyer?
Not always. 6 programs in Alabama are open to repeat buyers. "First-time buyer" is typically defined as not having owned a home in the past three years.
What credit score do I need?
As low as 600 for some programs. Most programs require 620-660. Higher credit scores may qualify you for more programs and better terms.
Can I combine multiple DPA programs?
In many cases, yes. Some programs are specifically designed to be layered with others. For example, you might combine a state grant with a local deferred loan. Check with each program administrator about stacking eligibility.
DPA Programs in Nearby States
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