Alabama Housing Finance – Housing and Urban Development
Mission statement: The Alabama Housing Finance Agency (AHFA) helps Alabamans obtain and maintain affordable homes and apartments through the financing of multifamily and single-family properties. AHFA created affordable real estate opportunities through the availability of private and public funds. Since 1980, AHFA, a state agency, has funded more than 50,000 affordable units for both residential and non-residential property owners. Since opening its doors to the public, AHFA is dedicated to making sure that all Alabamans are able to live comfortably in their homes and communities.
The agency offers competitive interest rates on loans and mortgage loan programs, as well as affordable and accessible mortgage options. AHFA guarantees that the mortgage products it provides conforms to state, federal, and local regulations.
Homeowner assistance is available through several financial assistance program including the Low Income Housing Tax Credit (LIHT), Home Equity Grant (HEG), and the Senior Citizens Housing Tax Credit (SCHT). There are also financial assistance programs for first-time home buyers and refinancing. Financial assistance programs are provided to help lower and moderate-income Alabama residents afford mortgage payment and home ownership. In addition to affordable real estate financing programs, AHFA provides tax-free mortgage programs to low-and moderate-income individuals who wish to obtain a mortgage loan. Qualified applicants can apply for a tax-free mortgage by applying to the state’s Housing Finance Agency.
Housing grants provide money for projects designed to improve and/or sustain low-income communities. The Department of Housing and Community Development (HUD) distributes billions of dollars every year in federal funds for home improvement, rehabilitation, and real estate development. Some of the largest beneficiaries of HUD’s housing grant program include seniors and low-income families and individuals. The HUD’s Title III program provides federal funds for affordable rental assistance, home repairs, and home improvement, such as home repairs and improvements to enhance safety, energy efficiency, and security.
HUD offers four main types of home loan programs to assist homeowners who need financial assistance with their home purchase, rehab, or refinance. These are the Home Affordable Modification Program (HAMP), the Federal Housing Administration’s (FHA) FHA-insured Loan Modification Program, the Guaranteed Home Improvement Program (GHIP), the Department of Housing and Urban Development (HUD’s) Special Needs program, and the Housing Opportunity Plan program. AHFA provides mortgage financing and loan modifications, which allow qualified borrowers to purchase affordable homes, make improvements, or make improvements to their existing home. With all home loan programs, borrowers are required to make payments according to the guidelines and terms set by the lender. Home owners who qualify can receive a substantial reduction in their existing mortgage, or may obtain a modified loan to buy more affordable homes and make necessary improvements to their homes.
In addition to the programs listed above, the Alabama housing finance authority provides other financing opportunities, including the National Housing Act and the Housing and Urban Development (HUD) Guaranteed Loan program. The National Housing Act (NHA) is an act that provides federal funds to low and moderate-income families for the purchase, renovation, and improvement of their homes. Through the NHA, families and individuals can obtain assistance to assist them in buying new, rehabilitating, or improving existing homes.
HUD guarantees loan programs, which provide mortgage financing, mortgages, and home loan modifications, to families who meet a series of requirements, including employment and income verification, credit checks, and credit worthiness. Homeowners who obtain guaranteed loans must make payments according to the guidelines and terms set by the lender. Home owners can also get special benefits, such as reduced interest rates, lower monthly payments, and additional points for early payoff.
HUD is responsible for implementing the Fair Housing Act, which protect the rights of minority, disabled, and urban families and individuals, as well as others that are not otherwise disadvantaged, to have equal access to decent housing. HUD is also responsible for ensuring that its programs are carried out in a transparent and efficient manner to ensure compliance with all applicable laws.