DOWN PAYMENT ASSISTANCE PROGRAM

Who can apply?

First-time homebuyers meeting the residency and income requirements can apply. HUD defines a first-time homebuyer as a person who has not owned a residence for the past three years, with the exception of single parents who have become divorced within the past three years.

You must be a U.S. citizen or a legal alien resident.

Residency Requirements

Individuals and households buying within the urban county consortium geographical area - which includes Bayou La Batre, Chickasaw, Citronelle, Creola, Mount Vernon, Prichard, Saraland, Satsuma and Dauphin Island.

Individuals and households buying within the City of Mobile are not eligible for this county program.

How to apply

All persons interested in participating in the Down Payment Assistance Program must first attend a Homebuyer's Training/Counseling Program to learn about credit requirements, the loan process and budgeting for home ownership. Training is conducted by Consumer Credit Counseling of Mobile: (251) 602-0011.

Upon completion of training, participants will be issued a certificate of completion. You must complete training prior to applying for a home mortgage with a bank.

The training classes are free. Please call Consumer Credit Counseling of Mobile for class location, dates and times.

Income Eligibility

To be eligible to participate in the Down Payment Assistance Program, you must have an anticipated annual (gross) income for the next 12 months that does not exceed 80% of the current median family income (based on household size) for Mobile County.

2006 INCOME LIMIT

The chart above shows the income limit for participation in the program for various household sizes in the urban county consortium geographical area. Income limits change every year.

Amount of Assistance

Qualified first time homebuyers are eligible for up to $7,500 of assistance to provide a down payment and to pay closing costs. The minimum amount of assistance provided is $1,000.

Note: Potential homebuyers must be prepared to provide $500 in cash towards the purchase of the home. This amount is non-refundable.

What type of home can you purchase?

• A single family dwelling unit, located within the specified geographic area.
• Mobile homes, condominiums, town houses, duplex or multi-plex units are NOT eligible types of residential dwelling units.
• The property to be acquired must be inspected by a County specified code inspector.

Property use

The purchasing household must occupy the property as their principal residence for a period of five years. If you move before five years, you will be required to repay the entire grant.

For further information please call Consumer Credit Counseling of Mobile: (251) 602-0011.