AHFA Announces New Rural Homebuyer Program
July 13, 2020
To help potential homebuyers in rural areas, the Alabama Housing Finance Authority (AHFA) has teamed up with Fannie Mae to offer the HFA Preferred Rural Homebuyer Program.
This program will be used in conjunction with the Step Up down payment assistance program and provides a subsidy that helps lower a homebuyer’s monthly mortgage payment and decreases upfront costs.
- For new or existing homes
- Per FHFA’s 2018-2020 Duty to Serve High-Needs Counties regulation, property must be located in one of the following counties:
- Barbour, Bullock, Butler, Choctaw, Clarke, Conecuh, Dallas, Escambia, Greene, Hale, Lowndes, Macon, Marengo, Monroe, Perry, Pickens, Pike, Russell, Sumter, Washington, Wilcox
- No sales price maximum
- Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for property’s location or, $97,300 annual income (whichever is less)
- Minimum credit score of 640 is required
- Must apply for loan through a participating lender
The program will be available July 13 until October 2, 2020.
This assistance can be combined with a Mortgage Credit Certificate to make buying a home even more affordable.
For more information, visit the AHFA website here.