What is the Homebuyer/Downpayment Assistance Program?
In order to assist citizens whose homes were destroyed during the tornado and to stimulate the repopulation and revitalization of the affected disaster area, the City of Tuscaloosa is allocating a portion of the CDBG Disaster Recovery grant totaling $500,000 for the purpose of providing incentive for citizens to purchase homes in the Tuscaloosa community.
Who is eligible?
Eligible applicants will include the following:
- Applicants must be qualified as low to moderate income as set forth by HUD income limits.
- A person who was occupying a residence (whether owned or rented) within the recovery zone on the day of the storm and whose home is no longer habitable due to storm damage. This pool of applicants is eligible regardless of new home location as long as it is within the Tuscaloosa city limits (whether inside or outside of the recovery zone).
- A person who was living outside of the recovery zone on the day of the storm but who is purchasing a home that is located within the recovery zone. (For information regarding the zones of recovery, please contact the Recovery Operations department at 205-248-5720.)
- In addition to the eligibility factors above, participants may not be eligible if they are receiving homebuyer assistance from either FEMA or SBA.
How are the applicants selected?
Applicants are chosen on a variety of requirements that are regulated by the City of Tuscaloosa and U.S. Housing and Urban Development. Parties must be acquiring a property in an eligible area as outlined above. Participants must meet income limit requirements, as set forth by HUD, and complete a "qualified homebuyer training" course offered by the City of Tuscaloosa's housing counselor or another certified housing counselor. The participant must also meet the requirements of a participating lending institution and qualify for a mortgage. The property to be purchased must be the participant's principle place of residence.
If participants qualify for funding through the Homebuyer/Downpayment Assistance Program for Disaster Recovery, their application will be submitted for approval by the Tuscaloosa City Council. Applications must be approved by the City Council before any funding will be released.
How can funds from the Homebuyer/Downpayment Assistance Program be used?
The maximum award amount per participant will be $10,000. The award may be used to pay the upfront costs of acquiring a principal residence and the reasonable and necessary costs incurred by the participant or lender associated with the purchase. Should the award amount exceed the down payment and closing costs, the remaining funds will be applied toward the principal mortgage amount. The award will be dispensed at the loan closing.
How can I request funding?
To apply for funding, applicants must complete a “qualified homebuyer training” course offered by the City of Tuscaloosa’s housing counselor or another certified housing counselor, be pre-approved for a mortgage through a lending institution, and submit the City of Tuscaloosa’s Homebuyer Down Payment Assistance application available at www.tuscaloosa.com.
For additional information or help developing your request for funding through the Homebuyer/ Downpayment Assistance Program for Disaster Recovery, call Caramyl Drake at 205-248-5720 or email at email@example.com. She can tell you whether or not a particular property is eligible for funding or assist in developing a request for funding.