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 division of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.
Program Income Limit:
- Participants who earn $130,600 or less are eligible for the FHA/VA or Conventional (HFA Advantage) Step Up program, regardless of household size or location.
Additional Information and Qualifications:
- HFA Advantage conventional, FHA, VA loans only
- Amount of assistance: 4% of the sales price up to $10,000
- For new or existing homes in Alabama
- Minimum credit requirements: 640 for all programs
- Debt to income ratio must be 45% or lower
- Homebuyers must complete a homeownership education course
- Must apply for loan through a participating lender