Low-income Alabama households will soon be able to benefit from new below-market mortgage rates offered through the Alabama Housing Finance Authority’s First Phase Mortgage Revenue Bond program.
Homebuyers making below the median income for their area can apply for two special 30-year fixed mortgage rates: 5.5% for FHA, VA and USDA loans and 6% for Freddie Mac HFA Advantage conventional loans.
Alabama homebuyers can apply only through AHFA, and applications will be accepted on a first-come, first-served basis by a statewide network of participating lenders. Both rates include up to $10,000 in down payment assistance.
The First Step program, funded by the sale of tax-exempt mortgage revenue bonds, was very popular several years ago, and market conditions are right to relaunch the program again, AHFA Executive Director Robert Strickland said.
“The 50,000 Alabama homebuyers who took advantage of this program from 1980 to 2010 know what a difference it can make,” Strickland said. “A below-market interest rate translates into substantial savings over the life of the loan. Combined with AHFA's down payment assistance, it helps stretch borrowers' savings and reach the next generation of potential homebuyers.”
Income and sale price limits for participation are set by the U.S. Department of Housing and Urban Development based on the median income for each area. Limits vary depending on the number of family members and the location of the home.
In some areas of the state, qualifying households with annual incomes of up to $119,400 can purchase homes with sales prices of up to $588,104 in “eligible” areas and $481,176 in “non-eligible” areas. These areas are also established by the federal government to encourage economic development.
More information about the program is available through the Alabama Housing Finance Agency..
This story originally 256 today.
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