Home Ownership
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The Center of Hope CDC is firmly believes that home ownership is a part of achieving the "American Dream!" Thus, we are actively involved in "building homes YOU deserve!" Mobile County is the lead agency in an urban country consortium of cities. The consortium members believe that homeownership is a valuable component in stabilizing neighborhoods and that the program assists low income families in building financial equity while fostering economic growth through new home construction. The Down Payment Assistance Program will provide a grant up to $7,500.00 for a down payment and closing costs. This is a grant, not a loan. You must live in the house for five years. If you move before the five –year period, you will be required to repay the grant. Who Can Apply? First-time homebuyers meeting the residency and income requirements can apply. HUD defines a first-time homebuyer as a person who has not owned a residence for the past three years, with the exception of single parents who have become divorced within the past three years. You must be a U.S. citizen or a legal alien resident. How to apply § Step 1 All persons interested in participating in the Down Payment Assistance Program must first attend a Homebuyer’s Training/ Counseling Program to learn about credit requirements, the loan process and budgeting for homeownership. Training is conducted by: Consumer Credit Counseling of Mobile (251) 602-0011 Prichard Housing Corporation II (251) 452-4512 Upon completion of training, participants will be issued a certificate of completion. You must complete training prior to applying for a home mortgage with a bank. The training classes are free and are held throughout Mobile County. § Step 2 Participating banks will have all necessary applications that the homebuyer will need to complete before participating in the program. Participating banks are: AmSouth Bank BankTrust Colonial Bank Compass Bank Commonwealth National Bank Gulf Federal Bank New South Federal Savings Bank Wachovia Mortgage Regions Bank Whitney Bank USDA/Rural Development Income Eligibility To be eligible to participate in the Down Payment Assistance Program, you must have an anticipated annual (gross) income for the next 12 months that does not exceed 80% of the current median family income (based on household size) for Mobile County.
The chart above shows the maximum income limit for participation in the program for various household sizes in the urban county consortium geographical area. Amount of Assistance Qualified first time homebuyers are eligible for up to $7,500 of assistance to provide a down payment and to pay closing costs. The minimum amount of assistance provided is $1,000. Potential homebuyers must be prepared to provide approximately $500 in cash up front to cover costs of the appraisal report and house inspection. This amount is non-refundable. What type of home can you purchase? § A single dwelling unit, located within the specified geographic area. § Mobile homes, condominiums, town houses, duplex, or multi-plex units are NOT eligible types of residential dwelling units. § The property to be acquired must be inspected by a qualified code inspector, who is familiar with the International Residential Code of 2000. The Down Payment Assistance Program is a fast and easy way to help home buyers with money at closing for no down payment mortgage and assistance for closing costs that they do not have to repay. Zero down payment grants assistance is not just for first time home buyer loans. |