FAIRHOPE, Ala. — September 25, 2026 — Fairhope Mortgage has announced a down payment assistance program with no household-income limits, open to qualified Alabama buyers whether or not they have owned a home before. Qualified borrowers may receive assistance equal to as much as 5% of the home's purchase price when using an eligible FHA or conventional mortgage, with a minimum qualifying credit score of 640.
Many Alabama assistance programs bar buyers who earn above a set threshold, and several require first-time homebuyer status. AHFA, the state's housing finance authority, caps its Step Up assistance for Alabama buyers at $172,800 in household income. This program removes that ceiling entirely, targeting the "missing middle" of Alabama buyers who have steady income and can handle a monthly payment but lack ready cash for the upfront cost.
Depending on eligibility and program terms, the assistance may be structured as a forgivable grant or a subordinate second lien on the property. On a $300,000 purchase, 5% assistance could provide as much as $15,000 toward the buyer's required down payment.
"This program opens the door for many Alabama buyers who earn too much to qualify for traditional income-restricted assistance but still need help managing the upfront cost of buying a home," said Tom Kalagher, owner and branch manager of Fairhope Mortgage. "It can also help repeat buyers who have the income to afford a monthly mortgage payment but do not currently have enough accessible cash for the down payment."
Eligible properties
The assistance may apply to qualifying primary-residence purchases in Alabama, with flexibility for several common property types. Eligible properties may include single-family homes, eligible manufactured or mobile homes, condominiums and townhomes, subject to the requirements of the applicable mortgage and down payment assistance programs.
FHA and conventional financing
The assistance may be paired with an eligible FHA or conventional mortgage. FHA financing can suit buyers seeking a lower down payment and more flexible qualifying standards, while conventional financing may fit borrowers who meet the applicable credit, income and underwriting requirements. All borrowers must have a qualifying credit score of at least 640 and satisfy the underwriting requirements of both the first mortgage and the down payment assistance program.
"Down payment assistance should not automatically be dismissed because someone has owned a home before or earns above the limits of another assistance program," Kalagher said. "The first step is reviewing the borrower's complete financial situation and determining which assistance structure, mortgage program and property type may be eligible."
Individual eligibility review
The amount and structure of assistance will depend on the borrower's qualifications, mortgage program, property, purchase price and available program funding. A forgivable grant may include specific occupancy and forgiveness requirements, and assistance structured as a second lien may be subject to repayment upon the sale, transfer or refinancing of the property, at maturity, or under other program-specific conditions.
Fairhope Mortgage encourages prospective buyers to complete an eligibility review before beginning their home search, so the borrower and real estate agent understand estimated purchasing power, required funds and available assistance before making an offer. Borrowers and real estate professionals may visit fairhope-mortgage.com or contact Tom Kalagher at Fairhope Mortgage.
About Fairhope Mortgage
Fairhope Mortgage provides personalized residential mortgage guidance to homebuyers, homeowners and real estate investors throughout Alabama. The company offers access to conventional, FHA, VA, USDA, manufactured-home, investment-property and specialty mortgage programs.
Fairhope Mortgage is located at 314 Magnolia Ave., Suite 101, Fairhope, AL 36532. Tom Kalagher holds Individual NMLS #2028566; Fairhope Mortgage, LLC holds Company NMLS #2561450.
Media Contact: Tom Kalagher, Fairhope Mortgage, fairhope-mortgage.com.
This announcement is for informational purposes only and is not a commitment to lend or a guarantee of down payment assistance. Program availability, funding, assistance amount, lien structure, forgiveness terms, repayment requirements, property eligibility, credit standards and underwriting requirements apply. A minimum qualifying credit score of 640 is required. Not all applicants or properties will qualify. Additional restrictions may apply.
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