AHFA Makes Homeownership Possible

Do you dream of owning a home? Think you cannot afford it? Since 1980, AHFA's versatile, affordable programs have helped more than 75,000 families purchase a home.

We offer options that fit the needs of many buyers. 

First Step

AHFA is bringing back this lender and homebuyer favorite. Now called the First Step program, the below-market interest rates financed through Mortgage Revenue Bond loans and up to $10,000 in down payment assistance turned 50,000 Alabama households into homeowners from 1980 to 2010.

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Step Up

The Step Up program is available to homebuyers who earn less than the program income limit and meet standards for creditworthiness. The program offers a competitive 30-year fixed interest rate and a down payment assistance option.

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Affordable Income Subsidy Grant

In addition to the down payment assistance currently offered through the First Step and Step Up programs, the HFA Advantage product provides eligible borrowers a grant to help with closing costs. Borrower(s) qualifying income converted to an annual basis cannot exceed 80% of the Area Median Income (AMI) for property’s location.

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Mortgage Credit Certificates

A Mortgage Credit Certificate (MCC) reduces the amount of federal income tax homebuyers must pay, which in turn frees up income to qualify for a mortgage. Borrowers can claim a tax credit of up to 50 percent of the mortgage interest paid per year. It is a dollar-for-dollar reduction against a borrower's federal tax liability. To receive immediate savings from the MCC, the borrower must file a revised W-4 withholding form with their employer, which should reduce the yearly tax contribution and increase the borrower's take-home pay. Borrowers can also choose to realize the savings once a year through the federal income tax return to be filed.

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