See programs you qualify for

By Tyler Thompson · Licensed Real Estate Agent · Updated March 27, 2026

Homebuyer Programs in Mobile, AL (2026)

Population: 187,000 | Median home price: $195,000 | Est. closing costs: $4,000 - $6,000

Mobile is Alabama's port city on the Gulf Coast, known for its shipbuilding industry, aerospace sector, and vibrant cultural scene in Mobile County. With a median home price around $195,000, Mobile offers some of the most affordable homeownership in the Gulf region along with exceptionally strong assistance programs. The City of Mobile provides up to $15,000 in forgivable down payment assistance, while Mobile County offers two powerful programs: the DPA program providing up to $25,000 and the Hurricane Recovery HDPA program offering up to $50,000 for buyers in designated areas. At the state level, AHFA's Step Up and First Step programs each add up to $10,000 in additional assistance. By combining city, county, and state programs, eligible Mobile buyers could access tens of thousands of dollars in combined assistance toward their home purchase.

City Programs in Mobile

Program Name	Type	Amount	First-Time Only	Details
City of Mobile Down Payment Assistance Program	Forgivable Loan	Up to $10,000; up to $15,000 for blighted properties	Yes	View →

City of Mobile Down Payment Assistance Program

Type:: Forgivable Loan
Amount:: Up to $10,000; up to $15,000 for blighted properties
First-time only:: Yes

County Programs in Mobile County

Program Name	Type	Amount	First-Time Only	Details
Mobile County Down Payment Assistance Program (DPA)	Forgivable Loan	Up to $25,000	Yes	View →
Mobile County Homeownership Down Payment Assistance Program (HDPA)	Forgivable Loan	Up to $50,000	No	View →

Mobile County Down Payment Assistance Program (DPA)

Type:: Forgivable Loan
Amount:: Up to $25,000
First-time only:: Yes

Mobile County Homeownership Down Payment Assistance Program (HDPA)

Type:: Forgivable Loan
Amount:: Up to $50,000
First-time only:: No

State Programs in Alabama

Program Name	Type	Amount	First-Time Only	Details
AHFA Affordable Income Subsidy Grant	Grant	0.50% to 1% of total loan amount	No	View →
AHFA First Step Program	Deferred Loan	Up to $10,000 or 4% of sales price, whichever is less	Yes	View →
AHFA Step Up Program	Deferred Loan	Up to $10,000 or 4% of purchase price, whichever is less	No	View →
Alabama Mortgage Credit Certificate (MCC)	Tax Credit	Up to $2,000 per year in federal tax credits	Yes	View →
FHLBA Community Partners Product	Forgivable Loan	Up to $20,000 in home purchase assistance for down payment and closing costs	No	View →
FHLBA First Time Homebuyer Product	Forgivable Loan	Up to $17,500 in home purchase assistance for down payment and closing costs	Yes	View →
FHLBA Workforce Housing Plus+	Grant	Up to $15,000 in home purchase assistance for down payment and closing costs	No	View →

AHFA Affordable Income Subsidy Grant

Type:: Grant
Amount:: 0.50% to 1% of total loan amount
First-time only:: No

AHFA First Step Program

Type:: Deferred Loan
Amount:: Up to $10,000 or 4% of sales price, whichever is less
First-time only:: Yes

AHFA Step Up Program

Type:: Deferred Loan
Amount:: Up to $10,000 or 4% of purchase price, whichever is less
First-time only:: No

Alabama Mortgage Credit Certificate (MCC)

Type:: Tax Credit
Amount:: Up to $2,000 per year in federal tax credits
First-time only:: Yes

FHLBA Community Partners Product

Type:: Forgivable Loan
Amount:: Up to $20,000 in home purchase assistance for down payment and closing costs
First-time only:: No

FHLBA First Time Homebuyer Product

Type:: Forgivable Loan
Amount:: Up to $17,500 in home purchase assistance for down payment and closing costs
First-time only:: Yes

FHLBA Workforce Housing Plus+

Type:: Grant
Amount:: Up to $15,000 in home purchase assistance for down payment and closing costs
First-time only:: No

Federal Programs

Program Name	Type	Amount	First-Time Only	Details
FHA Loans	Government-Insured Mortgage	Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)	No	View →
Good Neighbor Next Door (HUD)	Government Property Sale Program	50% discount off the list price of HUD-owned homes	Yes	View →
Home Possible Mortgage (Freddie Mac)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HomeReady Mortgage (Fannie Mae)	Government-Guaranteed Mortgage	Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment	No	View →
HUD $100 Down Program	FHA-Financed HUD REO Purchase	Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.	No	View →
USDA Rural Development Loans	Government-Guaranteed Mortgage	100% financing (no down payment required); loan amount up to appraised value	No	View →
VA Loans	Government-Guaranteed Mortgage	No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)	No	View →

FHA Loans

Type:: Government-Insured Mortgage
Amount:: Up to FHA county loan limits ($541,287 floor to $1,249,125 ceiling for single-family in 2026)
First-time only:: No

Good Neighbor Next Door (HUD)

Type:: Government Property Sale Program
Amount:: 50% discount off the list price of HUD-owned homes
First-time only:: Yes

Home Possible Mortgage (Freddie Mac)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HomeReady Mortgage (Fannie Mae)

Type:: Government-Guaranteed Mortgage
Amount:: Up to conforming loan limits ($832,750 standard / $1,249,125 high-cost in 2026); 3% minimum down payment
First-time only:: No

HUD $100 Down Program

Type:: FHA-Financed HUD REO Purchase
Amount:: Only $100 down payment required (vs. standard 3.5% FHA down payment). HUD may also pay up to 3% of buyer's closing costs.
First-time only:: No

USDA Rural Development Loans

Type:: Government-Guaranteed Mortgage
Amount:: 100% financing (no down payment required); loan amount up to appraised value
First-time only:: No

VA Loans

Type:: Government-Guaranteed Mortgage
Amount:: No loan limit for veterans with full entitlement (0% down at any price); partial entitlement subject to conforming limits ($832,750 standard in 2026)
First-time only:: No

Nonprofit Programs

Program Name	Type	Amount	First-Time Only	Details
Habitat for Humanity of Southwest Alabama Homeownership Program	Zero-Interest Loan	Affordable home purchase with 0% interest mortgage	No	View →

Habitat for Humanity of Southwest Alabama Homeownership Program

Type:: Zero-Interest Loan
Amount:: Affordable home purchase with 0% interest mortgage
First-time only:: No

Free eligibility check

18 programs available in Mobile. See which ones you qualify for.

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How to Apply

Step 1: Check your eligibility. The City of Mobile and Mobile County programs require low to moderate income based on HUD guidelines. AHFA's Step Up program allows income up to $159,200, and First Step allows up to $172,800.

Step 2: Complete homebuyer education. Both the City of Mobile and Mobile County programs require pre-purchase homeowner counseling and education. Contact the City of Mobile Neighborhood Development Department or the Mobile County Grants Department at 251-574-5060 for approved course providers.

Step 3: Contact the City of Mobile Neighborhood Development Department to apply for the city's DPA program (up to $15,000 for blighted properties, $10,000 for standard purchases within city limits).

Step 4: Contact the Mobile County Grants Department at 251-574-5060 to learn about the county DPA (up to $25,000) and the HDPA hurricane recovery program (up to $50,000). Attend a program information session.

Step 5: Get pre-approved for a mortgage through an AHFA-approved lender to access state-level Step Up or First Step programs for an additional $10,000 in assistance.

Step 6: Find a home in an eligible area. The city program requires a property within Mobile city limits; county programs require properties in designated areas of Mobile County.

Step 7: Submit your applications and close on your home. The City of Mobile DPA is forgiven after 5 years of owner-occupancy.

Frequently Asked Questions

How much down payment assistance can I get in Mobile?+

Mobile buyers have access to some of the most generous DPA in Alabama. The City of Mobile provides up to $10,000 (or $15,000 for blighted properties). Mobile County's DPA program offers up to $25,000 and the HDPA hurricane recovery program provides up to $50,000 for buyers in designated areas. AHFA's Step Up and First Step state programs each add up to $10,000. Depending on eligibility, total combined assistance could exceed $35,000 or more.

Do I have to be a first-time homebuyer to qualify?+

The City of Mobile DPA and Mobile County DPA both require first-time buyer status. However, the Mobile County HDPA hurricane recovery program and the AHFA Step Up state program do not require first-time buyer status. Habitat for Humanity of Southwest Alabama also does not require first-time buyer status.

What is the Mobile County HDPA hurricane recovery program?+

The Homeownership Down Payment Assistance Program (HDPA) is a CDBG-DR (Community Development Block Grant - Disaster Recovery) program funded through the Alabama Department of Economic and Community Affairs for Hurricane Sally and Zeta recovery. It offers up to $50,000 in down payment assistance for qualified households purchasing a single-family home in designated areas of Mobile County. Contact Mobile County at 251-574-5060 for eligibility details.

What homebuyer education is required?+

Both the City of Mobile and Mobile County programs require completion of a pre-purchase homeowner counseling and education course before receiving assistance. Contact the City of Mobile Neighborhood Development Department or Mobile County Grants Department at 251-574-5060 for a list of approved course providers in the area.

Can I combine city and county programs?+

Potentially yes, if you purchase a property within both the City of Mobile limits and a designated Mobile County program area. The city program provides up to $15,000, and the county DPA adds up to $25,000. You can also stack AHFA state programs on top for additional assistance. Contact both offices to confirm you can layer programs for your specific property location.

What is the maximum home price I can pay?+

Neither the City of Mobile nor Mobile County programs specify a maximum purchase price, but you must meet income requirements (low to moderate income per HUD guidelines) and purchase within designated eligible areas. AHFA state programs also do not set a specific price cap. With Mobile's median price around $195,000, most program-eligible homes fall well within typical lending guidelines.