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 program asks for
- 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
- 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.
- A home inside Montgomery city limits
It doesn’t cover
- Households above 80% of area median income
- Homes outside Montgomery
These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.
Income limit
80% of Montgomery County’s area median income
HUD sets the area median income each year. The limit changes with household size, so a family of five has a higher limit than a single homebuyer.
Where it applies
Montgomery’s homesMontgomery’s homes, and the ones this program accepts
- 69.2% single-familysingle-family
- 3.4% townhousetownhouse
- 5.5% 2–4 units2–4 units
- 19.6% 5+ unitscondo & apartment buildings (5+ units)
- 2.2% mobile & othermobile home & other
A tick marks a kind of home the program’s record lists. The agency confirms it for the home you choose.
$161,900
Montgomery median home value
54.9%
built before 1980
U.S. Census Bureau, ACS 2024 5-year. More about buying in Montgomery
How to apply
How to applyTwo steps, in this order
Contact City of Montgomery Housing Development Division to reserve funds
Funds are reserved with the provider and are subject to availability.
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 homebuyer can take it to a lender or housing counselor.
Questions about this program
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. 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 homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. Residency requirement: Property must be located within City of Montgomery. 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.
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 serves homebuyers purchasing in Montgomery, 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. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.
Also for Montgomery homebuyersOther programs open to Montgomery homebuyers
- Montgomery Habitat for Humanity Homeownership ProgramAssistance available
- Montgomery Housing Authority HCV Homeownership ProgramAssistance available
- RCLF Alabama Down Payment Assistance ProgramUp to $20,000
Whether two programs can be combined is up to each agency. Ask before you apply.
All 74 programs for MontgomeryProgram terms are set by City of Montgomery Housing Development Division and can change; confirm on the official site before you apply.