In August, AHFA purchased its 500th loan-for the Nixon family of Prattville--through the pioneering Habitat for Humanity Loan Purchase Program.

Working together with Habitat for Humanity, AHFA purchases mortgage loans from Alabama's Habitat affiliates. This process allows the affiliates to receive the loan amount up front in a lump sum while AHFA receives the monthly payments from the affiliates for the life of the loan. The affiliate then uses the up-front funds to build more housing for low-income families.

The Habitat affiliate solicits the assistance of a local lender to serve as a conduit for the sale of the loan. The affiliate sells the mortgage to the local bank, which then sells the loan to AHFA. This productive cycle unites the local Habitat affiliates, the lending community and AHFA to give Alabama's low-income families a chance at homeownership.              

Shanika Nixon's $53,503 loan was purchased in conjunction with Habitat for Humanity of Autauga & Chilton Counties and River Bank & Trust.   

Originally offering mortgage payment assistance to unemployed homeowners, Hardest Hit Alabama is now providing two additional assistance programs for financially distressed homeowners facing foreclosure.

The loan modification assistance provides funds, not to exceed $30,000, to assist financially distressed homeowners in achieving loan modification. The short sale assistance helps financially distressed homeowners with the sale of their primary residence. Short sale assistance is not to exceed $30,000.

HHA mortgage payment assistance continues to provide up to $25,000 in monthly mortgage payments to homeowners receiving state unemployment compensation benefits.

As with all HHA programs, the family's total household income cannot exceed $77,560, and the balance of the home's mortgage must be $258,690 or less. Properties must be the homeowner's primary residence and be located in Alabama. 

Recent Fannie Mae rulings relating to 97% LTV conventional financing products have restricted opportunities for borrowers. AHFA's Step Up program remains an ideal option for homebuyers with limited down payment savings, especially when combined with Fannie Mae's own HFA Preferred product.

Step Up offers financing on 30-year, fixed-rate mortgages to buyers whose incomes can sustain a market-rate mortgage but whose savings fall short of the amount needed for entry and closing costs. Participants may earn up to $97,300 and remain eligible for Step Up, regardless of household size or location.

The Alabama Center for Real Estate reports that, in July, Alabama residential sales continued to gradually improve-up 18.9 percent compared to the same period a year earlier. Through July, sales are up 10.8 percent year-over-year and eighty percent of local markets report positive sales growth compared to 2012. Click to view the full report.