DOWNPAYMENT ASSISTANCE FOR
Montgomery, AL – The City of Montgomery’s Downpayment Assistance Program for first-time homebuyers.
Funds for the homeownership program are made available by the U.S. Department of Housing and Urban Development (HUD) under its HOME Investment Partnership Program (HOME). HUD regulations establish maximum income limits per family size; these limits determine eligibility to receive the City’s assistance.
The program targets income eligible first-time homebuyers who desire to purchase a home, but have found it difficult due to a lack of funds for downpayment. Since establishing this program in November 2002, the program has helped 234 citizens of Montgomery realize their dream as first-time homebuyers and owning a home a reality.
Downpayment assistance funds cover the downpayment and some closing cost as determined by mortgage lenders. The City will provide up to $5000.00 once approved by a lender, and applicants must complete homeownership training. Participants must contribute a minimum of $500.00 towards the purchase of their home, and the home must be located within the city limits of Montgomery.
“We are pleased to partner with the Consumer Credit Counseling Service of Alabama (CCCSA) to provide homeownership training to eligible participants,” states Marv Epps, program manager in the City’s Community Development Office. “The training will consist of group and individual training sessions to help prospective homebuyers understand the responsibility of, and steps to, owning a home.” He notes that participants must be approved by a lender prior to attending training.
Anyone interested in this program should contact the lender of their choice to qualify for a mortgage loan. Once approved, the lender must provide Consumer Credit a letter of qualifying approval and request for training to schedule homeownership training. There is a $50.00 training fee required to be paid by participants at the time of training.
Further information is available by calling the Community Development Office at (334) 241-2756.
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