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Homebuyers

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 division of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.

Participants who earn less than $97,300 are eligible for the Step Up program, regardless of household size or location.

Step Up+

In June, AHFA announced a new, temporary AHFA-administered Step Up+ mortgage enhancement that will pay the upfront split private mortgage insurance premium (up to $1,500) for homebuyers who earn less than 80 percent of the area median income. In turn, homebuyers will pay a lower monthly premium as part of their mortgage payment. Additionally, the interested party contribution has been increased from 3 percent to 4 percent for this program.

Information and qualifications:

  • HFA Preferred conventional loans only
  • 3% down payment assistance available through Step Up
  • For new or existing homes in Alabama
  • Homebuyers must have a credit score of 620 or higher
  • Homebuyers must complete a homeownership education course
  • Must apply for loan through a participating lender
  • Private mortgage insurance will be underwritten by Genworth or ARCH (no delegated options)

All Step Up+ loans must close by September 30, 2017

The Step Up program's standard $97,300 household income limits will NOT apply for Step Up+. Click here to review the income limits

For more information, contact your participating lender.