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 department of 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 conventional borrowers. The initiative will pay the up-front single PMI premium--saving the average homebuyer approximately $100 each month.