MORTGAGE PAYMENT ASSISTANCE PROGRAM

TERM SHEET

CRITERIA MORTGAGE PAYMENT ASSISTANCE PROGRAM TERMS

Brief description The Mortgage Payment Assistance program will assist homeowners with a financial hardship related 

to the pandemic by eliminating past due payments and other delinquent amounts including 

forbearance balances, , forward mortgages, reverse mortgages, loans secured by manufactured 

homes, or contracts for deed.

A one-time reinstatement payment must fully reinstate the homeowners account. Eligible 

expenses may include principal, interest, property taxes, homeowners insurance, corporate 

advances, ground rents, condominium fees, cooperative maintenance fees, planned unit

development fees, homeowners’ association fees or utilities that the servicer advanced to protect 

lien position. Reasonable and customary legal fees may also be paid. The program may also

provide monthly mortgage payment assistance for up to 6 months not to exceed an aggregate 

amount of $50,000.

Maximum amount of 

assistance per 

homeowner

HAF may be used to reinstate an eligible homeowner’s past due mortgage payments and all other 

mortgage-related expenses during their time of eligibility. The program will provide assistance not 

to exceed $50,000 to bring the homeowner current on his/her delinquent mortgage(s) and provide 

monthly payment assistance not to exceed 6 months or an aggregate amount of $50,000 (whichever 

comes first). The payments can cover principal, interest, fees, escrow/impound expenses, corporate 

advances, past due homeowner’s association (HOA) and condominium fees, reasonable legal fees, 

delinquent taxes and/or escrow shortage for property taxes and hazard insurance.

Changes Effective for applications on or 

after 9/19/2022
MORTGAGE PAYMENT ASSISTANCE PROGRAM

TERM SHEET

CRITERIA MORTGAGE PAYMENT ASSISTANCE PROGRAM TERMS

Homeowner 

eligibility criteria 

and documentation 

requirements

Homeowners will be required to provide a Hardship Affidavit attesting their inability to pay their 

mortgage due to a COVID-19 related hardship after January 21, 2021. Homeowners must currently 

occupy the property as their primary residence and the residence must be located within the state of 

Alabama. Homeowners will be required to certify occupancy.

Homeowners, in connection with a mortgage or real estate transaction, cannot have been convicted, 

within the last 10 years of any one of the following: (A) felony larceny, theft, fraud or forgery, (B) 

money laundering or (C) tax evasion.

Documentation requirements include Hardship Affidavit, Socially Disadvantaged affidavit (if 

applicable), proof of ownership, identification of borrower and co-borrower in the form of a driver’s 

license or government issued ID, and income documentation.

Income Documentation:

Homeowners must have total annual household income of less than 150 percent of the area median 

income or 100% of the median income for the United States, whichever is greater. AHFA may change 

these limits annually when new income data becomes available from the U.S. Department of Housing 

and Urban Development AHFA will utilize one of two approaches for a homeowner’s income eligibility 

determination/documentation:

1. Written attestation together with supporting documentation. The homeowner will provide a 

written attestation as to household income together with supporting documentation of income 

including, but not limited to paystubs, W-2s, or other wage statements, IRS Forms (1040, 

1065, 1099), tax filings, depository institution statements demonstrating regular income, or a 

written attestation from an employer; or

2. Written attestation plus a reasonable fact-specific proxy for household income.

Loan eligibility 

criteria specific to 

the program

Funds may be used to pay an homeowners first mortgage, subordinate lien(s), loans secured by 

contract deeds or land contracts, and past due property taxes, past due HOA and condominium fees, 

corporate advances, and past due homeowners insurance. Eligible structures include single-family 

homes, attached or detached, and manufactured housing attached to real property. The maximum 

original principal mortgage amount on all existing mortgage loans on the property may not total more 

than the conforming loan limits at the time of origination. Mortgages must be originated by a financial 

institution in the business of regularly originating mortgages. The property must be the homeowners 

primary residence. The property must not be vacant, abandoned or investment property.

Form of assistance Program assistance will be in the form of a grant. Homeowners receiving assistance will not be 

required to execute a note and a subordinate mortgage lien in favor of AHFA.

Payment 

requirements

Payments may be made directly to the servicer or appropriate entity.
LOAN MODIFICATION PROGRAM

TERM SHEET

CRITERIA LOAN MODIFICATION PROGRAM TERMS

Brief description The Loan Modification program is available to homeowners who have an eligible financial hardship 

related to the pandemic.. Under the program, a one-time disbursement of funds will be made to the 

mortgage servicer to extinguish the first mortgage lien. 

Maximum amount of 

assistance per 

homeowner

Each Homeowner will be eligible for up to $50,000 through this program with respect to the 

applicant’s primary residence.

Homeowner 

eligibility criteria 

and documentation 

requirements

Homeowners will be required to provide a financial Hardship Affidavit attesting to their inability to pay 

their mortgage. Homeowners must have a total annual household income not to exceed 150 

percent of the area median income. AHFA may change this income limit annually when new income

data becomes available from the U.S. Department of Housing and Urban Development.

Lien Extinguishment:

Homeowners must be on a fixed income in order to be eligible for lien extinguishment. Homeowners 

not on a fixed income must have an annual income not exceeding 100% AMI.

Documentation requirements include Hardship Affidavit, Socially Disadvantaged affidavit(if 

applicable), proof of ownership, identification of borrower and co-borrower in the form of a driver’s 

license or government issued ID, and income documentation.

Income Documentation:

Homeowners must have total annual household income of less than 150 percent of the area median 

income or 100% of the median income for the United States, whichever is greater. AHFA may change 

these limits annually when new income data becomes available from the U.S. Department of Housing 

and Urban Development AHFA will utilize one of two approaches for a homeowner’s income eligibility 

determination/documentation:

1. Written attestation together with supporting documentation. The homeowner will provide a 

written attestation as to household income together with supporting documentation of income 

including, but not limited to paystubs, W-2s, or other wage statements, IRS Forms (1040, 

1065, 1099), tax filings, depository institution statements demonstrating regular income, or a 

written attestation from an employer; or

2. Written attestation plus a reasonable fact-specific proxy for household income.
LOAN MODIFICATION PROGRAM

TERM SHEET

CRITERIA LOAN MODIFICATION PROGRAM TERMS

Loan eligibility 

criteria

The homeowner must currently occupy the property as their primary residence, and the residence 

must be located within the state of Alabama. Eligible structures include single- family homes, attached

or detached, and manufactured housing. The maximum original principal mortgage amount on all 

existing mortgage loans on the property may not total more than the conforming loan limits at the 

time of origination. Mortgages must be originated by a financial institution in the business of regularly 

originating mortgage. The property must not be vacant, abandoned or investment property

Form of assistance Program assistance will be in the form of a grant. Homeowners receiving funds will not be required 

to execute a note and a subordinate mortgage lien in favor of AHFA.

Payment 

requirements

A single payment made payable to the servicer will be disbursed. Funds will be paid, as applicable, 

to the mortgage servicer or other third-party payee authorized by the servicer, or other third party 

authorized to collect eligible charges in accordance with reinstatement instructions received from the 

payee.