The MCC program is a federal income tax credit that helps eligible first-time homebuyers and qualified veterans reduce their mortgage interest payments. The credit can be used to purchase a single-family home, a condominium, or a townhouse. The amount of the credit is based on the borrower's income and the amount of the mortgage.
Federal Housing Administration (FHA)
The FHA offers a variety of mortgage loan programs that can help low income families buy a home in Alabama. FHA loans are available through FHA-approved lenders. FHA loans have less strict credit requirements and down payment requirements than conventional loans.
Government Sponsored Enterprises (GSE)
The GSEs are two government-sponsored enterprises that provide financing for mortgages. The GSEs are Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac purchase mortgage loans from lenders and package them into mortgage-backed securities (MBS). These MBSs are then sold to investors on the secondary market. The GSEs also set the guidelines for conventional mortgages.
Rural Development (RD)
RD offers a variety of loan programs that can help low income families buy a home in rural areas. RD loans are available through RD-approved lenders. RD loans have less strict credit requirements and down payment requirements than conventional loans.
