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Homeownership

THA’s Homeownership Program targets qualifying first-time homebuyers.  Qualifying families will be required to obtain their own standalone mortgage from a 3rd party lending institution of their choice.

THA’s Homeownership Application

 

Potential candidates must meet the following THA established criteria:

  • Cannot have owned a home in the previous 3 years
  • Must be employed or receive other sufficient sources of income
  • Must attend the City of Tuscaloosa’s Homeownership Counseling Program
  • Must provide THA will a $1,000 down payment upon initial qualification
  • Must be able to obtain a standalone 1st mortgage from a 3rd party lender
  • Must have an acceptable criminal background check
  • Income limits cannot be greater than the current 80% of Area Median Income for Tuscaloosa (based on family size)

In addition, 3rd party lenders may require the following:

  • Satisfactory credit score
  • Satisfactory credit history
  • Satisfactory rental history
  • Satisfactory income
  • Satisfactory debt to income ratio

Homes are typically constructed with the following characteristics:

  • A minimum of 1150 sq. / ft.
  • 3 bedroom/ 2 bathroom configuration
  • The exteriors will be a combination of brick and siding
  • Furnished with a new refrigerator, stove and dishwasher
  • Fenced-in back yard
  • Enclosed single-car garage

Homes are typically financed as follows:

Sales Price – $99,500

Down Payment (Purchaser) – $1,000

1st Mortgage (Purchaser) – Varies

2nd Mortgage (Forgiven by City – Prorated over 15 years) – Typically $22,500

3rd Mortgage (Forgiven by THA – Prorated over 5 years) – Typically $17,000

Homes are typically sold for $99,500.  The purchaser is required to secure a 1st mortgage from a lending institution of their choice in addition to their $1,000 down payment.  Any city funds will be used for a 2nd mortgage.  The 2nd mortgage is typically forgiven over a 15 year prorated period.  THA typically holds a 3rd mortgage which is forgiven on a similar prorated basis over a 5 year period.

Current Projects

The City of Tuscaloosa donated a 20-acre parcel of land to THA for the purpose of developing additional homeownership units for qualified first-time home buyers.  The property is located on 29th Street in West Tuscaloosa and will include a total of 56 lots (Springer Estates).

THA has developed five homes in the initial Phase I (2017) and seven homes in Phase II (2019) of Springer Estates.  THA is currently developing an additional six homes as a part of Springer Phase III which is scheduled to be completed in early 2020.  Future phases will be developed based on funding availability.

Past Projects

Springer Estates Phase II (2019)

Springer Estates Phase I (2017)

Scattered Sites (2014/2015)

THA’s 2014 Homeownership Program included the development of nine (9) homes in the West Tuscaloosa area on various sites.  The five homes of Phase One were completed and sold in June of 2014.  The four remaining homes (Phase Two) were completed in early 2015.  The 2014 Program was developed using city HOME funds and THA Program Income.

Bernice Hudson Washington Estates (2012)

The nine (9) homes of Bernice Hudson Washington Estates were developed in 2012.  Bernice Hudson Washington Estates was developed using city HOME funds and THA Program Income.

Cordell Heights (2010)

The eight (8) homes of Cordell Heights were developed in 2010 as the final Phase of the McKenzie HOPE VI development.  Cordell Heights was developed using HOPE VI funds.

 

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