Alabama Step Up Program (Down Payment Assistance)
What is Step Up?
Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.
The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. Since the loans are serviced by ServiSolutions, a department of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.
Participants may earn up to $97,300 and remain eligible for the Step Up program, regardless of household size or location.
AHFA Makes Homeownership Possible.
Do you dream of owning a home? Do you think you cannot afford it? The Alabama Housing Finance Authority has helped more than 105,000 families achieve their dream of owning a home. We offer a variety of loan programs that fit the needs of many buyers. AHFA enables low-to-moderate income buyers to purchase a home with 30-year, fixed interest rates and down-payment assistance, not to mention the generous sales price and income limits make qualifying easy.
Step Up
Mortgage loans with down payment assistance and a fixed interest rate for 30 years. Applicants must earn less than $97,300 and meet standards for creditworthiness.
Mortgage Credit Certificate
MCCs are a tax credit, not a mortgage. They put extra cash in your pocket each month, so that you can more easily afford a house payment, which means fewer tax dollars will be withheld from your regular paycheck, increasing your take-home pay.
To Be Eligible For a Step Up Mortgage
You must buy a new or existing home. Refinancing an existing mortgage does not qualify.
You must buy a home in Alabama and occupy it, as your primary residence, within 60 days of closing.
Your annual household income cannot exceed $97,300.
You must be a legal resident of the United States.
You must apply for an FHA or conventional loan through a Participating Lender.
Your credit score must be 640 or higher.
You must complete a homeownership education course.
Learn More by Click Here to be Directed to the Alabama housing Authority Website
To Be Eligible For a Mortgage Credit Certificate
You must be a first-time homebuyer (or have not owned a home in the last three years).
You must buy a new or existing home. Refinancing an existing mortgage does not qualify.
You must buy a home in Alabama and occupy it, as your primary residence, within 60 days of closing.
You must meet federally established income and sales price limits.
You must be a legal resident of the United States.
You must apply for a 30-year, amortizing loan through a participating lender.
Learn More by Click Here to be Directed to the Alabama housing Authority Website
Get Help From a Lender
Get matched with a lender who can help you get qualified in Alabama – it is easy, free and only takes a few minutes.
