Homeownership Resource Center

Homebuyer Training
Schedule

Free Homebuyer Counseling

Free Homebuyer Education Course

Financial Assistance
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FSC is a HUD-Approved Housing Counseling Agency

  

 First Time Homebuyer
Pre-Purchase Housing Counseling

Family Services Center provides individual, one-on-one counseling for first time home buyers, whether you’re ready to buy now or several years from now.  Learn how to obtain an affordable mortgage loan, the best way to shop for a home, and how to improve your credit score to obtain the lowest cost mortgage.  We also provide information on how to qualify for homebuyer financial assistance programs.  

You can learn how to:

Free group training classes are also available.  Each course consists of two 4-hour sessions.  Classes fill-up, so be sure to call 551-1610 to register.

Family Services Center provides Pre-Purchase Housing Counseling covering:

a.    Pre-purchase Counseling for Prospective Homeowners

Individual counseling sessions for prospective low to moderate income homebuyers with emphasis on lower income first time home buyers.  Services include assessing each client's needs and financial situation, presenting information on all available homeownership assistance programs, establishing an individualized homebuyer plan, developing corrective action plans and timelines for success, and encouraging and facilitating progress as clients overcome obstacles and move toward mortgage-readiness. 

b.    Matching Clients with Non-predatory Loan Products & Homebuyer Assistance Programs

Analysis of financials, risk elements, and general concepts affecting conventional and government mortgage loan decisions, using effective procedures and  techniques that translate into appropriate loans and satisfied housing counseling clients. 

c.    Homebuyer Education Programs

Comprehensive homebuyer education program to turn prospective homebuyers into satisfied homeowners including how to shop for a home, obtain an affordable mortgage loan, improve budget and credit profiles, and maintain the home and  finances after purchase.

d.    Housing Choice Voucher Homeownership

Information, outreach and referral for local area Housing Choice Voucher Homeownership Program.

e.   Training on Avoidance of Delinquency, Predatory Lending & Foreclosure

Training on how to avoid predatory lenders and common lending pitfalls, including helping unwary borrowers avoid inflated appraisals, unreasonably high interest rates, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default or foreclosure.  

 

 
 Financial Assistance

FIRST STEP

 

Beginning May 24, 2007, the Alabama Housing Finance Authority (AHFA) is accepting reservations for $35 million in First Step funds.  In addition, special consideration is available for borrowers living in a Hurricane Katrina declared disaster area county.

 

This tax-exempt Mortgage Revenue Bond program offers lower-than-market, fixed interest rates on 30-year FHA, VA, Rural Development and conventional mortgages to first-time and lower-income home buyers.

 

In conjunction, AHFA provides up to 6 percent of the home's sales price in down payment and closing cost aid, financed over a 20-year term.  To get these funds, you must use an FHA, Rural Development or conventional loan. If your household income is 80 percent or less of the state's median income, then the down payment funds are interest-free.  If your household income is more than 80% of the state's median income, then the down payment funds will be loaned to you at the same interest rate as your low-interest First Step mortgage.

 

RURAL ALABAMA MORTGAGE PROGRAM

 

The Rural Alabama Mortgage Program (RAMP) provides low-interest mortgages and entry cost assistance to rural home buyers. RAMP is a combination of AHFA's low-interest rate funding and down payment assistance and USDA Rural Development's 502 Direct Loan Program.

 

There are three parts to a RAMP loan:

1) AHFA and Rural Development will each finance half of the purchase price of a new or existing home, combining their tools to offer the lowest rate available.

2) Borrowers are eligible for up to $2,000 in down payment funds, interest-free, to reduce up-front, out-of-pocket expenses.

3) Borrowers will learn the basic responsibilities of buying and maintaining a home through a homeownership education course.

RAMP's income limits are set by Rural Development and range from $13,800 to $64,000, depending on family size and location.  Maximum sales prices range from $94,000 to $110,000, with no first-time homebuyer restriction.

 

To apply, contact one of USDA Rural Development's 17 regional field offices.  The phone number for the Huntsville area Rural Development office is 532-1677.

 

STEP UP

 

The Step Up program is available statewide and year-round on a first-come, first-served basis. AHFA provides up to 100% financing (up to 6 percent of the home's sales price) to income-qualified buyers using FHA, Rural Development, or select "My Community" conventional mortgage loans.


In conjunction with the down payment funds, AHFA offers a 30-year, fixed-rate mortgage with an interest rate just slightly higher than the current market rate.  Program participants also must complete a home buyer education workbook.

Participants may earn up to $97,300 and remain eligible for the Step Up program, regardless of household size or location.


The down payment funds are blended into the home mortgage, so there's only one check to write.

 

MORTGAGE CREDIT CERTIFICATES

 

Mortgage Credit Certificates (MCC) are not mortgages.  Administered by AHFA, an MCC reduces the amount of federal income tax homeowners pay, giving them more available income to qualify for a mortgage loan.

 

The federal government allows every homeowner an income tax deduction for all the interest paid each year on a mortgage loan, but an MCC provides a tax credit of 20 percent.  The tax credit provided by the MCC simply helps borrowers increase their disposable income to qualify for a loan and meet mortgage obligations.

 

The MCC program is offered in conjunction with AHFA's Step Up financing program.

Alabama Housing Finance Authority
P.O. Box 230909
Montgomery, AL  36123-0909 

www.ahfa.com

 

Toll-free:  800-325-AHFA

Downpayment Assistance Program (DAP)

The City of Huntsville Community Development Department and the Alabama Housing Finance Authority provide first home purchase downpayment and/or closing cost assistance.  The assistance is available on a first-come, first-served basis, until funds run out.   

$5000 is provided at time of closing to be used exclusively for the downpayment and/or closing costs associated with buying a single-family home.  The $5000 is a 0% interest deferred loan with no monthly payments.  The loan is gradually forgiven by 20% per year and is totally forgiven after the buyer has lived in the home for five (5) years.

 Eligibility Requirements
 To be eligible, a participant must:

  1. Have not owned a home within the last three (3) years 
  2. Complete a Homebuyer Education Course (provided by FSC at no charge)
  3. Have $500 in personal savings account for home maintenance prior to loan closing
  4. Purchase home within Huntsville City Limits (including areas annexed by Huntsville)
  5. Purchase home costing no more than $150,000 with monthly payments that FSC has verified to be affordable
  6. Purchase home that passes code inspection by City of Huntsville before closing
  7. Meet lender standards for creditworthiness with maximum qualifying ratios of 29/33 (total monthly mortgage payment must be no more than 29% of gross monthly income)
  8. Occupy the property - it cannot be used for business, commercial or rental purposes
  9. Have income at or below 80% of the area’s median income based on family size (see chart below)
    10.

Income Limits for Huntsville  Downpayment Assistance Program

Family Size

1

2

3

4

5

6

7

8

Gross Annual Income

 
37,800

 
43,200

 
48,600


 54,000

 
58,300


62,650

 
66,950


71,300

 

 

 

Homebuyer Education Course 

 

Link to Homebuyer Education Schedule

 

Family Services Center provides free homebuyer training covering the following areas:

 

I.      Money Management

·         Setting goals

·         Budgeting (tools and considerations)

·         Income/Expenses

·         Cost cutting measures: dining out, grocery shopping, utilities

II.    Banking Concepts

·         Definitions

·         Financial Institutions (banks, credit unions, thrifts)

·         Savings options/tips

·         Checking accounts (ordering and writing checks, balancing, reconciling)

·         Investments (CD’s, 401k, stocks, bonds, etc.)       

·         Add’l bank services (ATM’s, debit cards, online services)

·         Banks fees: minimum balance, overdraft, etc.

III.   Basics of Borrowing

·         Types of loans

·         Interest rates (APR)           

·         Loan consolidation

IV.   Credit Management

·         Credit reports

·         Building/repairing credit

·         Establishing good credit

·         Credit Cards

·         Consumer credit laws

·         Bankruptcy

V.     Keeping Your Money Safe

·         Predatory lending   

·         Federal Consumer Protection Laws

·         Identity Theft

·         Credit card security

VI.   Real-Life Issues

·         Insurance & Risk

VII.  Homeownership Preparation

·        Develop savings plan

·        Finding the right real estate agent

·        How to increase your borrowing power

·        Creditworthiness

·        Finding the right mortgage

 VIII. House Shopping

·        Deciding what house you want

·        Comparison shopping

·        Making an offer

·        Negotiating the purchase

IX.   Mortgages

·         Shopping for an affordable mortgage loan

·        Applying for a loan

·        Loan processing

·        If your loan is rejected

X.   Closing

·        Preparing for closing

·        Closing Day

·        Getting the keys to your new home

XI.   Homeownership

·        Settling in

·        Obligations as a borrower

·        Reaping the benefits

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