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Habitat for Humanity of Morgan County Homeownership Program

Habitat for Humanity of Morgan County, AL · Decatur, Alabama

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What is Habitat for Humanity of Morgan County Homeownership Program?

Habitat for Humanity of Morgan County Homeownership Program is down payment assistance for homebuyers in Decatur, Alabama, administered by Habitat for Humanity of Morgan County, AL.

  • Habitat for Humanity of Morgan County makes homeownership possible for low-income households by offering 0%-interest affordable mortgage loans to purchase homes built or renovated by Habitat volunteers and partner families. Homes are not free — families pay an affordable monthly payment (capped at 30% of gross income) covering principal, taxes, insurance, termite protection, and servicing fees. Selection is based on need for adequate housing, ability to repay, and willingness to partner (sweat equity). The affiliate builds in Decatur, Hartselle, and surrounding Morgan County communities.
  • 0% interest mortgage.
  • Monthly payment capped at 30% of gross income.
  • Sweat equity builds community and reduces mortgage principal.
  • Homebuyer education included.
  • Funding comes from Private/nonprofit — Habitat for Humanity affiliate.

Do you have to pay it back?

Habitat for Humanity of Morgan County Homeownership Program is down payment assistance and is repaid under the terms set by Habitat for Humanity of Morgan County, AL.

  • Repayment is triggered by sale, transfer, or failure to maintain owner-occupancy.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Habitat for Humanity of Morgan County Homeownership Program 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
  • On credit: Credit report obtained; court-ordered judgments/liens must be paid; Chapter 7 bankruptcy must be discharged; Chapter 13 must be within 1 year of discharge
  • A completed homebuyer education course, through Habitat for Humanity of Morgan County — partner education classes including budgeting, buying a home, lawn care, home maintenance
  • Residency: Must live or demonstrate need in Morgan County, AL
  • Citizenship or immigration status: U.S. citizen or permanent resident
  • DRAFT (dpa-gap-finder 2026-06-15): pending review. Applicants must demonstrate housing need (e.g., housing costs >30% of income, poor conditions, overcrowding, Section 8). Court-ordered judgments must be paid; bankruptcies must be discharged. Income table on website is subject to change without notice — verify current limits at morganhabitat.org. Process from application to ownership typically 12–24 months. Program is NOT for emergency housing.

The program excludes

  • Manufactured homes

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?

Habitat for Humanity of Morgan County Homeownership Program sets its income limit as follows: Monthly income band verified on site: 1-person min $2,617/max $4,187; 2-person $2,988/$4,780; 3-person $3,363/$5,380; 4-person $3,733/$5,973; 5-person $4,033/$6,453; 6-person $4,333/$6,933; 7-person $4,633/$7,413; 8-person $4,929/$7,887 (gross monthly, subject to change).

  • 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?

Habitat for Humanity of Morgan County Homeownership Program can be used for single_family.

  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

Habitat for Humanity of Morgan County Homeownership Program serves buyers purchasing in Decatur, Alabama.

How do you apply?

Applications for Habitat for Humanity of Morgan County Homeownership Program go through Habitat for Humanity of Morgan County, AL, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through Habitat for Humanity of Morgan County — partner education classes including budgeting, buying a home, lawn care, home maintenance.

  2. Contact Habitat for Humanity of Morgan County, AL to reserve funds

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

  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.

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