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.

Mobile County Homeownership Down Payment Assistance Program (HDPA) is forgiven after 10 years, so a homebuyer 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.

Mobile County Homeownership Down Payment Assistance Program (HDPA) is open to homebuyers who will live in the home as their primary residence. On credit, the program states: No published minimum credit score. Program guide states homebuyers should have good credit and qualify for competitive lending products. A homebuyer education course is required, through HUD-Certified Housing Counseling Agency designated by Mobile County. 8-hour homeownership education course required. Residency requirement: Applicant must have been a Mobile County resident during Hurricanes Sally & Zeta (Sept. 11-16, 2020 and Oct. 28-29, 2020). Property must be located in Mobile County HOME Consortium area: unincorporated Mobile County or the cities/towns of Bayou La Batre, Chickasaw, Citronelle, Creola, Mount Vernon, Prichard, Saraland, Satsuma, Semmes. Homes within City of Mobile or Town of Dauphin Island are NOT eligible. Citizenship or immigration status: All members of the purchasing household must be U.S. citizens or qualified aliens eligible for federal public benefits under PRWORA (1996). Applicant must have been a Mobile County resident during Hurricanes Sally & Zeta (Sept. 11-16, 2020 and Oct. 28-29, 2020) -- proof of residency required (utility bill, vehicle tag receipt, tax record, lease/mortgage statement). Priority to LMI homeowners and renters impacted by 2020 hurricanes; LMI individuals on path to homeownership also encouraged. Cannot own additional property. Duplication of Benefits Certification required. First mortgage must be CFPB Qualified Mortgage, fully amortizing 30-year fixed (USDA up to 33-year). Front-end 30% / back-end 43% ratio caps. Property must pass County home inspection and environmental review. Independent state-licensed appraisal required to justify sales price.

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.

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.

Mobile County Homeownership Down Payment Assistance Program (HDPA) serves homebuyers 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.

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. 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. 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.