Alabama Housing Finance Authority

 

 

 

Click here to view their Web site. >>

 

AHFA was created in 1980 by Act No. 80-585 of the Alabama Legislature. AHFA is a public corporation dedicated to serving the housing needs of low- and moderate-income Alabamians. This goal is accomplished through affordable financing of safe, sanitary single- and multifamily housing.

 

Through the Alabama Housing Finance Authority/Habitat for Humanity partnership, AHFA purchases mortgage loans from Alabama's 37 Habitat affiliates. This process allows the affiliates to receive the loan amount up front in a lump sum while AHFA receives the monthly payments for the life of the loan. The affiliate then uses the up-front funds to build more housing for low-income families.

 

 

Because AHFA's enabling legislation prohibits the purchase of mortgages from entities other than financial institutions, 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 at par to the local bank, which then sells the loan at par to AHFA. Through this process, the affiliate also is able to nurture a relationship with the local lender and lay the groundwork for future financial aid. This productive cycle unites the local Habitat affiliates, the lending community and AHFA to give Alabama's less fortunate families a hand up into homeownership.

 

AHFA has allocated $13 million toward this program, the first of its kind in the nation, purchasing 344 loans since 1992 and 26 loans in FY 2006 alone.

 

 

AAHA greatly appreciates the innovative design of this program developed by Robert Strickland and Mike King of the Alabama Housing Finance Authority. AHFA continues to process mortgage loans each week which ensures that our affiliates may continue building for families in need.