Home Buyers Loan Program (City of Opelika)

What is Home Buyers Loan Program (City of Opelika)?

Home Buyers Loan Program (City of Opelika) is a forgivable loan for homebuyers in Opelika, Alabama, administered by City of Opelika Community Development Department.

• The City of Opelika provides down payment and closing-cost assistance through its CDBG-funded Home Buyers Loan Program for low- and moderate-income first-time buyers citywide, with preference for the Jeter Avenue Target Area. The City grants 50% of the lender-required down payment and customary closing costs, up to $6,000 per participant, structured as a 0% interest loan forgiven after five years of owner-occupancy. Buyers must not have owned a home in the past three years, must complete ACHR housing counseling, and must purchase within Opelika city limits; mobile and modular homes are not eligible.
• Up to $6,000 (50% of lender-required down payment plus closing costs).
• 0% interest, forgiven after 5 years.
• Free housing counseling through ACHR.
• Preference for Jeter Avenue Target Area buyers.
• Funding comes from Community Development Block Grant (CDBG) from HUD.

How much assistance does it provide?

Home Buyers Loan Program (City of Opelika) offers up to $6,000 in assistance.

• Amounts are the program's published maximums, not an offer — City of Opelika Community Development Department determines any individual award.

Do you have to pay it back?

Home Buyers Loan Program (City of Opelika) is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by If the homeowner does not remain in the home for at least five years after closing, the loan must be repaid.
• 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.

Who qualifies?

Home Buyers Loan Program (City of Opelika) is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Home Buyers Loan Program (City of Opelika) limits household income to 80% of the area median income, which varies by county and household size.

• Total household income cannot exceed 80% of HUD area median for Auburn-Opelika, AL (FY2025-2029, median family income $95,300). 80% (moderate income) upper limits by household size: 1 person $53,400; 2 $61,000; 3 $68,650; 4 $76,250; 5 $82,350; 6 $88,450; 7 $94,550; 8 $100,650.
• 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.

What kind of home can it be used for?

Home Buyers Loan Program (City of Opelika) can be used for Single Family.

• Manufactured homes are not eligible.

Where does it apply?

Home Buyers Loan Program (City of Opelika) serves buyers purchasing in Opelika, Alabama.

• The program targets specific areas: Preference given to buyers in the Jeter Avenue Target Area (bound by 6th St, Samford Avenue, Fox Run Parkway, and Torbert Boulevard).

How do you apply?

Applications for Home Buyers Loan Program (City of Opelika) go through City of Opelika Community Development Department, 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 Alabama Council on Human Relations (ACHR) provides home buyer training at no cost (home maintenance, financial management, credit, budgeting, insurance, foreclosure prevention, working with a realtor and lender)..

2. 2

   Contact City of Opelika Community Development Department to reserve funds

   Funds are reserved through Application through the City of Opelika Community Development Department; ACHR provides housing counseling., 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.