Alabama Housing Finance Authority

Snapshot - SF2

Today's Rates

First Step


Step Up

4.25% (FHA)
4.75% (Conv)

Help for Unemployed Homeowners

Eligible homeowners will receive assistance to pay their mortgage payment, up to 12 monthly mortgage payments not to exceed $15,000, per household. Visit   to apply.

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Thresholds is Going Digital

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AHFA's Thresholds newsletter, which has been published quarterly since 1994, is changing to a monthly digital edition. Doing so will enable us to deliver current AHFA- and industry-related news straight to your inbox once a month.

We appreciate your support and loyal readership of Thresholds and hope that you will join us in making this transition.

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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. AHFA offers down payment assistance with no sales price limits and higher income limits than the First Step program. 

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 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.


No PMI when combined with the Alabama Home Buyer Initiative

Beginning March 2014, qualified Step Up borrowers will be eligible for assistance through the Alabama Home Buyer Initiative--a limited time offering which will provide private mortgage insurance (PMI) at no cost to the borrower. The initiative will pay the up-front single PMI premium--saving the average homebuyer approximately $100 each month.

For more information: