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Shoals Habitat for Humanity Affordable Homeownership Program

Shoals Habitat for Humanity (Habitat for Humanity of Northwest Alabama) · Florence, Alabama

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Income limit

80% AMI

Of area median income; varies by county and household size

What is 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).

Do you have to pay it back?

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.

Who qualifies?

Shoals Habitat for Humanity Affordable Homeownership Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — the program sets its own definition
  • The home is occupied as a primary residence
  • On credit: 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 completed homebuyer education course
  • Residency: 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.

The program excludes

  • Manufactured homes
  • Households above 80% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

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.

What kind of home can it be used for?

Shoals Habitat for Humanity Affordable Homeownership Program can be used for Single Family.

  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

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

How do you apply?

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.

  1. Take a homebuyer education course

    Required by the program before funds are reserved.

  2. Contact Shoals Habitat for Humanity (Habitat for Humanity of Northwest Alabama) to reserve funds

    Funds are reserved through Annual application window — paper applications accepted by mail in January only, and are subject to availability.

  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.

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