Affordable Income Subsidy Grant – Alabama

The Affordable Income Subsidy Grant assists buyers by providing grants based on income that can be used toward down payment or closing costs. This may support those earning at or below 80% of the Area Median Income (AMI) and is administered by AHFA. When combined with other AHFA programs, it maximizes affordability for first-time buyers.

Maximize Your Subsidy:

• Grants are tiered to favor those with the greatest need.

• You do not have to repay the subsidy if you stay in the home for the required time.

• Many buyers pair this grant with FHA loans for better affordability.

• Be sure to review AMI charts for your county.

• Must meet income limits based on Area Median Income

• Must purchase a home in Alabama

• Minimum credit score of 640

• Debt-to-income ratio must be 45% or lower

• Must complete a homebuyer education course

• Grants for down payment or closing costs

• Reduces upfront mortgage expenses

• Can be combined with Step Up and MCC

1. Determine eligibility based on income

2. Complete a homebuyer education course

3. Apply through a participating lender

4. Submit documentation

5. Receive grant at closing