Mortgage Loans for Birmingham AL Step Up Program

Introducing Alabama Housing Finance Authority’s Mortgage Program

Step Up Mortgage Program

AHFA’S Step Up program is the first down payment assistance program designed specifically for Alabama’s moderate-income home buyers. Step Up helps those whose incomes can sustain a market-rate mortgage but whose savings fall short of the amount needed for entry costs like a down payment, closing costs and prepaid items.

How it Works

Participants may earn up to $97,300 and remain eligible for the Step Up mortgage program, regardless of household size or location. Also, AHFA provides a portion of the down payment and entry costs to buyers.

In Conjunction with the down payment funds that are secured by a 10-year second mortgage, AHFA offers a 30-year, fixed-rate mortgage. The down payment funds are blended into the home mortgage, so there’s only one check to write. Program participants also must complete an online home buyer education course to qualify for this type of mortgage.

Step Up Eligibility

• 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 mortgage loan through a participating lender.
• Your credit score must be 620 or higher.
• You must complete a homeownership education course. 

FAQ’s

Are there any home sales price limits? No.

Do target areas apply? No.

Does the federal recapture tax apply to this mortgage program? No.

Do I have to be a first-time home buyer to participate in the Step Up mortgage program? No.

How We Can Help

• We have Local Lenders
• In House Underwriters
• Fast Closings
• Conventional-Nothing Down
• 100% Financing
• ½% Registration Fee
• FHA- ½% Down Payment
• 99.5% Financing
• ½% Registration Fee