Homeownership Assistance Program (HOAP)

Homeownership Assistance Program (HOAP) is a forgivable loan for homebuyers in Huntsville, Alabama. The City of Huntsville's Homeownership Assistance Program (HOAP) helps first-time, income-eligible homebuyers purchase a home within Huntsville city limits. Funded by HUD HOME funds and administered by the City's Community Development department, HOAP provides up to $24,999 or 10% of the purchase price (whichever is less) as a five-year deferred, forgivable second mortgage. The loan is forgiven 20% per year on each anniversary of the closing date and is fully forgiven after five years of owner-occupancy. Funds may be used for down payment, closing costs, an interest-rate buydown, or principal reduction. Applications are submitted through the City's Neighborly Software participant portal. Up to $24,999 or 10% of purchase price (whichever is less). Five-year deferred-payment loan. 20% forgiven each year on the closing-date anniversary. May be applied to down payment, closing costs, interest-rate buydown, or principal reduction. Funding comes from HUD HOME Investment Partnership Program (federal funds passed through to City of Huntsville).

Homeownership Assistance Program (HOAP) provides assistance worth 10% of the purchase price, as set by the program. 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.

Homeownership Assistance Program (HOAP) is forgiven after 5 years, so a homebuyer who stays that long does not repay it. Repayment is triggered by Sale, transfer, refinance (cash-out), or borrower ceases to occupy the home as primary residence within the 5-year forgiveness period and unforgiven balance becomes due. 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.

Homeownership Assistance Program (HOAP) is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time homebuyer" usually means not having owned a home in the last three years, but the program sets its own definition. A homebuyer education course is required. Residency requirement: Property must be located within Huntsville city limits and used as primary residence for at least 5 years. Citizenship or immigration status: U.S. citizen or qualified non-citizen (federal HOME program requirement). Property must be located within Huntsville city limits. Buyer must occupy as primary residence for at least 5 years (otherwise the unforgiven balance becomes due). Amount of assistance is calculated based on the homebuyer's documented need.

Homeownership Assistance Program (HOAP) limits household income to 80% of the area median income, which varies by county and household size. Household income must be at or below 80% of HUD area median income for the Huntsville-Decatur-Albertville HUD Metro FMR Area, adjusted for household size; published HUD HOME income limits apply. 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.

Homeownership Assistance Program (HOAP) can be used for Single-family home, townhome, condo (within Huntsville city limits). New construction is eligible.

Homeownership Assistance Program (HOAP) serves homebuyers purchasing in Huntsville, Alabama.

Applications for Homeownership Assistance Program (HOAP) go through the administering agency, which publishes the current terms and the application steps on its own site. Funds are reserved through Online application via Neighborly Software portal: https://portal.neighborlysoftware.com/HUNTSVILLEAL/Participant. 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.