Am I Eligible?
To Be Eligible For a Step Up Mortgage
- 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 qualifying income cannot exceed $159,200
- You must apply for an FHA, VA, USDA, or HFA Advantage conventional product through a participating lender
- Your credit score must be 640 or higher
- Debt to income ratio must be 45% or lower
- You must complete a homeownership education course
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To Be Eligible For a First Step Mortgage
- In target areas, you can be a first-time homebuyer or repeat homebuyer
- In non-target areas, you must not have owned a home in the previous three years
- You must apply for an FHA, VA, USDA, or HFA Advantage conventional product through a participating lender
- You must live in the property. It cannot be used for business, commercial, or rental purposes.
- You must meet federally established sales price and income limits
- Your credit score must be 640 or higher
- Debt to income ratio must be 45% or lower
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To Be Eligible For a Mortgage Credit Certificate
- You must be a first-time homebuyer (or have not owned a home in the last three years)
- If the home you are purchasing is located in a "target" area, other conditions may apply. Contact your lender for more information.
- 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
- You must meet federally established income and sales price limits
- You must apply for an amortizing loan through a participating lender
- Other requirements may apply
- AHFA reviews and approves requests for an MCC prior to the closing of the loan
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