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.
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:
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.