Alabama Housing Grants

Alabama housing grants are given in order to provide affordable housing for people residing in the rural areas of the state. A number of governmental authorities come forward to provide loans to people who want to buy a house but cannot afford the high interest rates charged by the public sector banks.

USDA is one such organization that comes forward in providing loans and housing grants to the middle and lower income group people. USDA is the United States Development of Agriculture. The loan amount given by them depends on an individual's monthly income and expenses. The housing grants are divided in different sections that cater to different income groups. For example, people belonging to very low income group fall under section 502 direct loans. Section 504 gives out repair loans. These federal grants that are given by the government helps in the development of a rural area.

Alabama housing grants are given to low, very low and moderate income groups. In order to be eligible for the housing grants you need to be a rural resident and have a very low income. You must prove your inability of acquiring a loan elsewhere. In order to qualify for the grant funds, you must be at least 62 years of age or more. The maximum loan amount granted is $20,000 and the maximum lifetime grant which is made available is $7,500. These loans are given at the lowest possible rate of interest which is just 1% APR for a period of 20 years; thus making it very convenient for the lower income group to own a house.


The housing and urban development of America also announced housing grants in Alabama. As of 2009, the state of Alabama has received more than $1 million to take care of very low income people by providing them decent housing facilities. It has worked for the development of Montgomery, Huntsville, Birmingham, Jefferson County, Decatur, Auburn and Shelby County in AL. The HUD also works towards training the people of Alabama and generating employment in the state.