Homeownership Down Payment Assistance Program (HDPA) - Mobile County

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

Homeownership Down Payment Assistance Program (HDPA) - Mobile County is a forgivable loan for homebuyers in Mobile County, Alabama, administered by Mobile County Grants Department (CDBG-DR via Alabama Department of Economic and Community Affairs / ADECA).

• Mobile County's Homeownership Down Payment Assistance Program (HDPA) is a CDBG-DR (Hurricanes Sally & Zeta) program administered through ADECA that provides up to $50,000 (minimum $1,000) toward the purchase of a single-family home in designated Mobile County municipalities and unincorporated areas. Assistance is an interest-free deferred loan forgiven over up to ten years as long as the home remains the buyer's primary residence. The program prioritizes low- and moderate-income households impacted by the 2020 storms but also welcomes others on the path to homeownership; properties within the City of Mobile and Town of Dauphin Island are excluded.
• Up to $50,000 in assistance (minimum $1,000).
• 0% interest, forgiven over up to 10 years.
• Open to non-first-time buyers and storm-impacted households.
• Works with conventional, FHA, VA, and USDA Qualified Mortgages.
• Funding comes from Community Development Block Grant-Disaster Recovery (CDBG-DR), Hurricanes Sally & Zeta, administered through the Alabama Department of Economic and Community Affairs (ADECA).

How much assistance does it provide?

Homeownership Down Payment Assistance Program (HDPA) - Mobile County offers between $1,000 and $50,000 in assistance.

• The program can be combined with other assistance, subject to the rules of each.
• Amounts are the program's published maximums, not an offer — Mobile County Grants Department (CDBG-DR via Alabama Department of Economic and Community Affairs / ADECA) determines any individual award.

Do you have to pay it back?

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

• Repayment is triggered by Interest-free deferred loan forgiven over up to ten years; homebuyer must maintain the home as their primary residence.
• 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?

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

What are the income limits?

Homeownership Down Payment Assistance Program (HDPA) - Mobile County limits household income to 80% of the area median income, which varies by county and household size.

• 2026 HUD income limits (household must be at or below 80% AMI for Mobile County, revised annually): 1 person $69,950; 2 $79,950; 3 $89,950; 4 $99,950; 5 $107,950; 6 $115,950; 7 $123,950; 8 $131,950. (Disaster-recovery eligibility references up to 120% AMI for storm-impacted applicants.).
• 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?

Homeownership Down Payment Assistance Program (HDPA) - Mobile County caps the purchase price as follows: Home value limits updated beginning April 1, 2026 (specific dollar limit not stated on the flyer).

• Eligible property types include Single Family.

Where does it apply?

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

• The program targets specific areas: Priority to low- and moderate-income homeowners and renters impacted by 2020 Hurricanes Sally & Zeta; eligible only in designated Mobile County municipalities and unincorporated areas (excluding City of Mobile and Dauphin Island).

How do you apply?

Applications for Homeownership Down Payment Assistance Program (HDPA) - Mobile County go through Mobile County Grants Department (CDBG-DR via Alabama Department of Economic and Community Affairs / ADECA), 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 Homebuyer counseling required..

2. 2

   Contact Mobile County Grants Department (CDBG-DR via Alabama Department of Economic and Community Affairs / ADECA) to reserve funds

   Funds are reserved through Apply by calling the Mobile County Grants Department at (251) 574-5065., 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.