Homeownership Resource Center |
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 Homebuyer Training Schedule |
Free Homebuyer Counseling |
 Click here to learn how to spot & avoid foreclosure rescue & refinancing scams. |
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Homeownership Resource Center |
||
|
Homebuyer Training Schedule |
Free Homebuyer Counseling |
Click here to learn how to spot & avoid foreclosure rescue & refinancing scams. |
|
||
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'll learn how to:
Get started
Improve your credit
Qualify for an affordable mortgage
Obtain downpayment and other assistance
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.
Huntsville Downpayment
Assistance Program (DAP) -
Financial Assistance
The City of Huntsville Community Development Department provides downpayment and/or closing cost assistance
for first time homebuyers in Huntsville.
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:
Be a first-time homebuyer (have not owned a home within the last three years)
Complete a free homebuyer education course provided at Family Services Center (call 551-1610 to register)
Have at least $500 in personal savings account prior to loan closing
Purchase a home within the Huntsville city limits with a sales price no more than $150,000
Select home that passes code inspection by City of Huntsville before closing (Foreclosures or “as is” homes may not work well, since there may be no one to pay for any required repairs or upgrades prior to closing.)
Occupy the property - it cannot be used for business, commercial or rental purposes
Meet lender standards for creditworthiness with maximum qualifying ratios of 31 & 43, i.e., mortgage payment no more than 31% of gross monthly income, and no more than 43% including credit payments
Use a lender approved by Huntsville Community Development (see list below)
Have a household income (gross income of all persons who will live in home) at or below 80% of the area’s median income based on family size as defined by HUD (see below)
Income Limits for FY 2010 Huntsville Downpayment Assistance Program
|
Household Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Gross Annual Income |
38,100 |
|
|
|
|
|
|
|
City-Approved Lenders for DAP: First Federal Mortgage, Norstar Mortgage, Platinum Mortgage, Progress Bank, Redstone Federal Credit Union, Southwest Funding, WR Starkey Mortgage
(others may be approved, check with us for updates)
Lender approval requirements are at http://www.hsvcity.com/comdev/dap.php
U.S. Department of Agriculture Rural Development provides loans directly to homebuyers (Direct Loans), and also guarantees loans made by other lenders for homes in rural areas. These loans do not require mortgage insurance payments and have low interest rates. Additionally, their Direct Loans do not require a down payment. Call 544-5795 to apply for a Direct Loan, or go to your lender to apply for a Guaranteed Loan.
USDA Rural Development also provides grants (up to $7500), and loans (with as low as 1% interest) to repair or rehabilitate owner-occupied homes in rural areas. Call 544-5795 for more information.
Offered by the Alabama Housing Finance Authority, through approved lenders, 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.
The Rural Alabama Mortgage Program (RAMP) provides low-interest mortgages and entry cost assistance to rural home buyers. RAMP is a combination of the Alabama Housing Finance Authority'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.
Offered by the Alabama Housing Finance Authority, through approved lenders, 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.
Offered by the Alabama Housing Finance Authority, through approved lenders, 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
Toll-free: 800-325-AHFA
Link to Homebuyer Education Schedule
Family Services Center provides free homebuyer training covering the following areas:
II. Banking Concepts
III. Basics of Borrowing
· Types of loans
·
Interest rates (APR)
· Loan consolidation
IV. Credit Management
· Building/repairing credit
· Establishing good credit
· Credit Cards
·
Consumer credit laws
· Bankruptcy
·
Predatory lending
· Federal Consumer Protection Laws
· Identity Theft
· Credit card security
VI. Real-Life Issues
· Insurance & Risk
· 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
© 2008-10 Family Services Center - Huntsville, AL
