First Step is the Right Step to Help Homebuyers Save Big

November 18, 2024

In an uncertain economy, one thing is sure: A First Step Mortgage Revenue Bond loan from AHFA helps homebuyers save thousands of dollars.

On a median-priced home with a 30-year FHA loan, that’s an average savings* of more than $56,000 – about $1,875 per year for your borrowers.

If you’re not using the First Step program to reach first-time homebuyers, here are three reasons to add it to your toolbox:

Expand the pool.

We all know that homeownership stabilizes and strengthens our communities. First Step’s lower-than-market interest rates help you reach first-time homebuyers and those of modest means who might otherwise be stuck in the cycle of monthly rent. More than 96 percent of our borrowers are first-time homebuyers.

Stack the savings.

First Step loans also may be combined with up to $10,000 in a down payment assistance loan from AHFA. In addition, eligible borrowers may qualify for an Affordable Income Subsidy Grant toward closing costs. These add-ons further increase your borrowers’ purchasing power.

Build customer loyalty.

Most first-time homebuyers eventually become repeat homebuyers. What’s more, those homeowners you’ve given a solid financial footing may need small business, home improvement, and auto loans down the road.

First Step loans are available with 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development, and privately insured mortgages. Participants must meet federally established income and sales price limits based on geographic location.

“AHFA’s First Step loans result in real savings for Alabama’s first-time and lower-income borrowers,” said Executive Director Robert Strickland. “Every day we’re seeing schoolteachers, counselors, law enforcement personnel, ministers and more become homeowners through this program. We want Alabama lenders, homebuilders, and real estate professionals to be part of that.”