Jefferson County Home Buyers Assistance Program

What is Jefferson County Home Buyers Assistance Program?

Jefferson County Home Buyers Assistance Program is a deferred second loan for homebuyers in Jefferson County, Alabama, administered by Jefferson County Department of Community Services.

• Jefferson County Department of Community Services administers HUD HOME funds to provide homebuyer assistance to first-time, low-to-moderate income households within Jefferson County (excluding Birmingham). The Home Buyers Assistance Program is listed as an active HOME activity in the 2025 Annual Action Plan and uses the Recapture option. Homebuyer education is available through HUD-certified counselors; applications may be processed through Greater Birmingham Habitat for Humanity as a subrecipient.
• Down payment/homebuyer assistance for first-time buyers.
• HOME-funded.
• HUD-certified homebuyer education available.
• Consortium coverage of 33 cities in Jefferson County.
• This is a federal program, so it is available beyond a single state or city.
• Funding comes from HUD HOME Investment Partnerships Program.

Do you have to pay it back?

Jefferson County Home Buyers Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Sale, transfer, or refinance of property; HOME recapture provision applies.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Jefferson County Home Buyers Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

Jefferson County Home Buyers Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Low-to-moderate income per HUD HOME program guidelines (at or below 80% AMI for Birmingham-Hoover MSA). Specific dollar amounts not confirmed from primary source.
• 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?

Jefferson County Home Buyers Assistance Program can be used for Single Family.

Where does it apply?

Jefferson County Home Buyers Assistance Program is a federal program, so it is not limited to Alabama.

• The program targets specific areas: Jefferson County HOME Consortium — all of Jefferson County excluding City of Birmingham.

How do you apply?

Applications for Jefferson County Home Buyers Assistance Program go through Jefferson County Department of Community Services, 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 HUD-certified housing counselors through Jefferson County Housing Authority, (205) 849-0123.

2. 2

   Contact Jefferson County Department of Community Services to reserve funds

   Funds are reserved with the provider 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.