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There are four types of homestead exemptions:
1. Regular Homestead Exemption or Homestead 1 is
available to all citizens of Alabama who own and
occupy a single-family residence, if the property
is used for no other purpose. The amount of the
exemption is $4,000 of the assessed value for the
state taxes and $2,000 of the assessed value for the
county taxes.
2. Homestead Exemption 2 is for persons age 65 or
older whose adjusted gross income on the state
income tax return is less than $12,000 annually.
This exemption is for all state and county taxes up to
$5,000 in assessed value. Those who are permanently
and totally disabled or blind, regardless of income
are entitled to this exemption.
3. Homestead Exemption 3 is for all persons age 65 or
older, or who are totally disabled. This exemption is
for all property taxes if their annual taxable income
on the Federal Tax Return is $7,500 or less.
4. Homestead Exemption 4 is for all persons age 65
or older, regardless of income. This exemption is for
the total assessed value of the state taxes and up to
$2,000 of the assessed value of the county taxes.
Exemptions should be applied for between Oct. 1
and Dec. 31 based upon the status of the property
as of Oct. 1. For homestead exemptions 2 and 3, an
application for special homestead exemption is mailed
Oct. 1 to previously qualified homeowners allowing
them to renew their special homestead exemption each
year. Contact your local county administrative office to
inquire about homestead exemption and your status.
USDA RURAL DEVELOPMENT
USDA Rural Development is a federal agency whose
mission is to help rural Americans improve the
quality of their lives. Some of the programs available
through USDA Rural Development help finance new
or improved housing for moderate-, low- and very
low-income individuals/families.
USDA Rural Development
Barbour, Coffee, Covington, Crenshaw, Dale,
Geneva, Henry, Houston, Pike counties
202 S. Hwy 123, Suite H
Ozark, AL 36360
334-774-4926, Ext. 4
HOME REPAIRS 504 LOAN
AND GRANT PROGRAM
USDA Rural Development offers a home repair
loan and grant program (called 504 Loan & Grant
Program) to very low-income households who are
owner/applicants. This program does not apply to
home rental properties.
• Maximum loan amount is $20,000 at 1% interest
for up to 20 years.
• Maximum grant amount is $7,500 - lifetime limit.
• Applicants must be 62 years of age or older.
• Loans may be used for remodeling. Grants may only
be used to remove health or safety hazards.
Loans can be used for the following purposes:
• Dwelling improvements
• Dwelling modernization
• Removal of safety hazards
• Removal of health hazards
Loans cannot be used for the following:
• New construction
• Repairing dwellings in such poor condition that
they would continue to be hazardous after repairs
are made
• Moving a house or mobile/manufactured homes
• Off-site improvements
• Refinancing debts
Limitations and Requirements for loans:
• The balance of all Section 504 loans to an applicant
can never exceed $20,000.
• The interest rate on the outstanding principal is 1%.
• Loan terms are based on applicant’s repayment
ability, never to exceed 20 years.
• Loans of less than $7,500 may be on a “note only”
basis (no mortgage).
• Loans of $7,500 or more must be secured by a
mortgage (with title insurance) with all outstanding
debt on the property not exceeding the property
value.
• Cases where the total outstanding indebtedness on
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