City of Tuscaloosa Down Payment Assistance Program

City of Tuscaloosa Down Payment Assistance Program is a forgivable loan for homebuyers in Tuscaloosa, Alabama, administered by City of Tuscaloosa, Office of Community & Neighborhood Services. The City of Tuscaloosa, through its Office of Community & Neighborhood Services, operates a HOME-funded Down Payment Assistance Program providing down payment, closing cost, and/or principal buydown assistance to income-eligible homebuyers citywide. Assistance is a 0.00% interest loan that may be repaid or deferred/forgivable, secured by a lien/note/deed restriction, with a HOME affordability/recapture period of 5, 10, or 15 years. Distinct from the Tuscaloosa Housing Authority program. 0.00% interest. Deferred/forgivable second loan. Covers down payment, closing costs, and/or principal buydown. Citywide. No payments unless sold/transferred before end of affordability period. Recapture limited to net sale proceeds. Funding comes from HUD HOME Investment Partnerships Program administered by the City of Tuscaloosa.

City of Tuscaloosa Down Payment Assistance Program is a forgivable loan, so the balance is forgiven once the program's conditions are met. Repayment is triggered by Sale, transfer, or loss of primary-residence status before the end of the affordability period (5, 10, or 15 years based on amount of assistance); recapture limited to net proceeds from sale. The assistance is recorded in second position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

City of Tuscaloosa Down Payment Assistance Program is open to homebuyers who will live in the home as their primary residence. Primary residence throughout affordability period (5/10/15 years), HUD HOME income eligibility, lead-based-paint assessment on pre-1978 homes, lien/deed restriction recorded in Tuscaloosa County. Max assistance dollar amount not published online; contact OCNS.

City of Tuscaloosa Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size. HOME-funded homebuyer assistance limited to low- to moderate-income households (HUD HOME limits, up to 80% AMI). The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

City of Tuscaloosa Down Payment Assistance Program can be used for Single Family. New construction is eligible.

City of Tuscaloosa Down Payment Assistance Program serves homebuyers purchasing in Tuscaloosa, Alabama.

Applications for City of Tuscaloosa Down Payment Assistance Program go through City of Tuscaloosa, Office of Community & Neighborhood Services, which publishes the current terms and the application steps on its own site. Funds are reserved through Funding availability varies annually based on HOME allocation and program income; applicants apply through the Office of Community & Neighborhood Services. 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.