First-time homebuyers are offered assistance in buying a new home with the THA Homeownership Program. Home Purchase and Refinance Loans

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Tuscaloosa Housing Authority Homeownership Program

The Tuscaloosa Housing Authority Homeownership Program offers first-time homebuyers assistance with the THA Homeownership Program. The program offers new homebuyers affordable housing options to promote homeownership. 

Available Assistance 
Homes with the THA Homeownership Program are typically sold for $99,500. Homebuyers are required to secure a first mortgage from a lender of their choice and make a $1,000 down payment. Any city funds will be used for a second mortgage. The second mortgage is typically forgiven over a 15-year prorated period. The THA holds a third mortgage which is forgiven on a similar, prorated basis over a 5-year period. 

Eligibility Requirements 
The THA Homeownership Program is open to first-time homebuyers only; applicants who have owned a home in the previous three years are not eligible. All applicants must be able to prove employment or other forms of income and complete the City of Tuscaloosa’s Homeownership Counseling Program. Applicants must pass a criminal background check and their household income must fall at or under 80% of the area median income according to HUD guidelines. They are required to secure a first mortgage and be able to pay $1000 for a down payment. 

Property Guidelines 
 THA Program properties are at least 1150 square feet, with a 3 bedroom/2 bathroom configuration. All exteriors will be a combination of brick and siding, furnished with new refrigerators, stoves, and dishwashers. Properties come with a fenced-in backyard and enclosed, single-car garage. 

*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but state and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.  

Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information. 

First-Time Homebuyer Programs in Alabama

In an effort to assist first-time homebuyers to take on the challenge of homeownership successfully, the City introduced the First Time Home Buyer Loan Program.

The MHA Home Ownership Program program provides first-time homebuyers safe and affordable opportunities to purchase their first home.

Alabama's Neighborhood Housing Services offers first-time homebuyers educational courses to help answer the questions that come with buying a home. The classes are offered online and at the office in Birmingham, for low- to moderate-income borrowers.

Alabama's Community Development Department of the City of Huntsville offers first-time homebuyers two programs to help make their dreams of homeownership a reality, the Single Family HOME Ownership Program and the Down Payment Assistance Program

First-time homebuyers are offered assistance in buying a new home with the THA Homeownership Program.

First-time homebuyer assistance programs and/or grants were researched by the team at Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.'s compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.

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