hey prescott.
See what you qualify for

City of Montgomery HOME Down Payment Assistance

City of Montgomery Housing Development Division · Montgomery, Alabama

Last verified
See what you qualify forOfficial program site →
Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is City of Montgomery HOME Down Payment Assistance?

City of Montgomery HOME Down Payment Assistance is a deferred second loan for homebuyers in Montgomery, Alabama, administered by City of Montgomery Housing Development Division.

  • The City of Montgomery Housing Development Division administers HUD HOME Investment Partnerships Program funds to provide down payment assistance to first-time homebuyers who are very-low, low, and moderate-income, supporting affordable homeownership within the city limits.
  • Down payment assistance for first-time homebuyers.
  • HOME-funded gap financing.
  • Low-to-moderate income eligibility.
  • This is a federal program, so it is available beyond a single state or city.
  • Funding comes from HUD HOME Investment Partnerships Program.

Do you have to pay it back?

City of Montgomery HOME Down Payment Assistance is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

City of Montgomery HOME Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • Residency: Property must be located within City of Montgomery
  • DRAFT (dpa-gap-finder 2026-06-15): pending review. Specific assistance amounts, loan terms (deferred vs forgivable), forgiveness period, credit score requirements, max purchase price, and lender requirements were NOT confirmed from primary source as of 2026-06-15. The PY2026 HOME RFP is for rental housing; the homebuyer DPA component is confirmed as an ongoing activity per the Housing Development Division page but specific guidelines were not publicly posted. Contact HOME Program Manager Paul Van Fleet at (334) 625-2297 or pvanfleet@montgomeryal.gov for current program terms.

The program excludes

  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

City of Montgomery HOME Down Payment Assistance limits household income to 80% of the area median income, which varies by county and household size.

  • Low-to-moderate income per HUD HOME program guidelines (at or below 80% AMI). Specific dollar amounts not confirmed from primary source.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

City of Montgomery HOME Down Payment Assistance can be used for Single Family.

Where does it apply?

City of Montgomery HOME Down Payment Assistance is a federal program, so it is not limited to Alabama.

How do you apply?

Applications for City of Montgomery HOME Down Payment Assistance go through City of Montgomery Housing Development Division, which publishes the current terms and the application steps on its own site.

  1. Contact City of Montgomery Housing Development Division to reserve funds

    Funds are reserved with the provider and are subject to availability.

  2. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

Other programs in Montgomery, Alabama

See every program in Montgomery, Alabama →

90-second match

Not sure which you qualify for?

Answer 9 questions and we'll match you to every program you can actually use — in about 90 seconds. No SSN, no credit pull.

Find my programs