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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 $159,200 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, USDA 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