AHFA's Step Up Program Updated to Reflect Current Economic and Market Environments
December 7, 2020
The Alabama Housing Finance Authority (AHFA) has raised the limit on a homebuyer’s maximum qualifying annual income to $130,600 for its flagship Step Up down payment assistance program. This change will increase the number of Alabama families eligible for the program and was made in response to changed economic and market environments. It is in keeping with the program’s original affordability design.
In addition, the 1% origination fee was eliminated, which significantly reduces the out-of-pocket costs for potential homebuyers to utilize the Step Up program.
The Step Up program, established in 2000, was designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment. The program offers a competitive 30-year fixed interest rate and a down payment assistance option secured by a 10-year second mortgage combined with a 30-year, fixed-rate first mortgage. The Step Up program is available to homebuyers who earn less than the program income limit and meet standards for creditworthiness. Participants must complete a homebuyer education course to qualify.
AHFA looks forward to providing more Alabamians with access to an affordable homebuyer program and the ability to become successful long-term homeowners.
AHFA, established in 1980 by an act of the Alabama Legislature, is a self-supporting public corporation dedicated to meeting the needs of the state’s low- to moderate-income citizens. Its programs have provided opportunities for nearly 120,000 families to live in homes they can afford.