Mobile County Homeownership Down Payment Assistance Program (HDPA)

What is Mobile County Homeownership Down Payment Assistance Program (HDPA)?

Mobile County Homeownership Down Payment Assistance Program (HDPA) is a forgivable loan for homebuyers in Mobile County, Alabama.

• The Homeownership Down Payment Assistance Program (HDPA) is a CDBG-Disaster Recovery-funded program administered by the Mobile County Commission as Subrecipient to the Alabama Department of Economic and Community Affairs (ADECA). Provides up to $50,000 in interest-free deferred forgivable loan assistance to LMI households (up to 120% AMI) for down payment and closing costs on a single-family home in unincorporated Mobile County or designated municipalities, in response to Hurricane Sally & Zeta (2020) recovery. Sister program to the County's HOME-funded Down Payment Assistance Program (separate listing); modeled on its requirements. Despite being labeled 'Grant' on Freddie Mac DPA One, the assistance is structured as a forgivable second-lien loan with recapture-net-of-proceeds upon early sale/transfer. Applications opened Aug. 4, 2025 and continue until funds depleted.
• Up to $50,000 (minimum $1,000) interest-free deferred loan for down payment and closing costs, forgiven on a prorated monthly basis over up to 10 years. May provide up to 100% of the down payment required by the lender and/or subsidize mortgage interest rate. No monthly payments. Loan released at end of affordability period if homebuyer maintains primary residence.
• Funding comes from CDBG-DR (Hurricanes Sally & Zeta) administered by Alabama Department of Economic and Community Affairs (ADECA); HUD; Federal.

How much assistance does it provide?

Mobile County Homeownership Down Payment Assistance Program (HDPA) provides assistance worth 100% of the purchase price, as set by the program.

• Buyer contribution: Buyer must invest a minimum of $500 toward down payment or closing costs (per guidelines modeled after the County's HOME DPA).
• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

Mobile County Homeownership Down Payment Assistance Program (HDPA) is forgiven after 10 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by Sale or voluntary/involuntary transfer of title (including foreclosure) during the up-to-10-year affordability period triggers repayment of the unforgiven balance of CDBG-DR direct downpayment assistance, capped at net proceeds of sale (recapture net of proceeds, modeled on 24 CFR 92.254(a)(5)(ii)(A)(2) and (4)). Failure to occupy as primary residence during the affordability period requires repayment of the full direct downpayment assistance amount.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Mobile County Homeownership Down Payment Assistance Program (HDPA) is open to buyers who will live in the home as their primary residence.

What are the income limits?

Mobile County Homeownership Down Payment Assistance Program (HDPA) limits household income to 120% of the area median income, which varies by county and household size.

• Household income must not exceed 120% of Area Median Income for Mobile County (HUD CDBG income limits, FY 2025): 1p $68,450; 2p $78,250; 3p $88,000; 4p $97,800; 5p $105,600; 6p $113,450; 7p $121,250; 8p $129,100. Section 8 (24 CFR 5.609) gross-income definition; income of all household members 18+ is included.
• 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?

Mobile County Homeownership Down Payment Assistance Program (HDPA) caps the purchase price at $290,000.

• Eligible property types include Single-family detached dwelling unit. Property must be owner-occupied, purchaser-occupied, or vacant at the time of purchase.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Mobile County Homeownership Down Payment Assistance Program (HDPA) serves buyers purchasing in Mobile County, Alabama.

• The program targets specific areas: Hurricane Sally & Zeta disaster-affected residents of Mobile County receive priority. Eligible jurisdictions limited to unincorporated Mobile County and the designated municipalities; City of Mobile and Town of Dauphin Island are excluded.

How do you apply?

Applications for Mobile County Homeownership Down Payment Assistance Program (HDPA) go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-Certified Housing Counseling Agency designated by Mobile County. 8-hour homeownership education course required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Lender submits completed HDPA application, loan application, loan estimate, and purchase agreement to County; funding reserved at that point. County reserves 15 working days to review/approve. First-come, first-served until funding is depleted., and are subject to availability.

3. 3

   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.