Shoals Habitat for Humanity Affordable Homeownership Program

Shoals Habitat for Humanity Affordable Homeownership Program is down payment assistance for homebuyers in Florence, Alabama, administered by Shoals Habitat for Humanity (Habitat for Humanity of Northwest Alabama). Shoals Habitat for Humanity makes homeownership possible for low-income households in Lauderdale and Colbert counties by building homes and selling them to partner families with an affordable 0%-interest mortgage. Selection is based on need, willingness to partner (sweat equity), and ability to repay (~25% of gross monthly income). Applications are accepted by mail only during January. 0% interest affordable mortgage. No cash down payment (replaced by sweat equity). Payment capped ~25% of gross monthly income. Homebuyer education provided. Funding comes from Habitat for Humanity affiliate (donations, ReStore proceeds, government/HOME partnerships, sweat equity).

Shoals Habitat for Humanity Affordable Homeownership Program is down payment assistance and is repaid under the terms set by Shoals Habitat for Humanity (Habitat for Humanity of Northwest Alabama). Repayment is triggered by Monthly mortgage payments over the loan term; payment set at ~25% of gross monthly income including taxes and insurance. The assistance is recorded in first position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Shoals Habitat for Humanity Affordable Homeownership Program 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. On credit, the program states: No published minimum score; must demonstrate financial responsibility, no bankruptcy within past 2 years, no outstanding collections/liens/judgments that cannot reasonably be paid by completion of the build. A homebuyer education course is required. Residency requirement: Applicant must be a current resident of Lauderdale or Colbert County. Citizenship or immigration status: Must provide documentation of residency and eligibility to work in the US. Sweat equity (min 400 hours, two-adult household), homebuyer education classes, documented need, residency in Lauderdale or Colbert County, no bankruptcy in past 2 years, applications only in January.

Shoals Habitat for Humanity Affordable Homeownership Program limits household income to 80% of the area median income, which varies by county and household size. Household income evaluated against HUD income limits by family size; all household members' income counted. Affiliate references HUD income limits for the Lauderdale County / Florence-Muscle Shoals area. 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.

Shoals Habitat for Humanity Affordable Homeownership Program can be used for Single Family. New construction is eligible. Manufactured homes are not eligible.

Shoals Habitat for Humanity Affordable Homeownership Program serves homebuyers purchasing in Florence, Alabama.

Applications for Shoals Habitat for Humanity Affordable Homeownership Program go through Shoals Habitat for Humanity (Habitat for Humanity of Northwest Alabama), which publishes the current terms and the application steps on its own site. Funds are reserved through Annual application window — paper applications accepted by mail in January only. 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.