MONTGOMERY, Ala. (WHNT) — A new program from the Alabama Housing Finance Authority (AHFA) is now authorized to provide mortgage assistance for those financially affected by the COVID-19 pandemic.
AHFA said the Mortgage Assistance Alabama (MAA) will be available to homeowners who experienced temporary financial issues related to the pandemic after January 21, 2020. The program is funded through the Homeownership Assistance Fund established by the American Rescue Plan of 2021.
Assistance available from MAA includes:
- A one-time payment to a homeowner’s participating servicer to recast a loan or fill in a financial gap to establish eligibility for loan modification or extinguish a lien
- Past due mortgage-related expenses and 12 monthly mortgage payments
In order to qualify for assistance, you must meet the following criteria:
- The homeowner’s financial struggle must be related to the COVID-19 pandemic
- Total household income cannot exceed 150% of the area’s median income
- Applicants must use the property as their primary residence, which has to be in Alabama
- Original principal mortgage amount on all mortgage loans on the selected property can’t total more than the conforming loan limit
Eligible structures for assistance have to be a single-family home (attached or detached) or manufactured housing. Total assistance from the program cannot exceed $50,000.
Those excluded from MAA include homeowners who received federal mortgage payment assistance from another agency. Second homes, seasonal or vacation homes, and vacant properties will also not apply.
AHFA said applications will be accepted Monday through Friday; however, they are expecting a high volume of requests for assistance.
“To shorten wait time and to ensure the prompt handling of applications, we may periodically close the application portal for a brief period to allow for processing,” AHFA said in a statement. “A portal reopening date will be posted on the homepage once these applications have been processed.”
To apply for the program, click here. Any questions related to MAA should be directed to the program’s customer service center at 888-460-9977.