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Score Home Runs with First Step This Season

Posted on March 16, 2026

With AHFA mortgage rates currently as low as 5.5%, now is the perfect time to step up to the plate. Whether your borrower is a rookie or a seasoned pro, First Step can help you knock the next loan out of the park.

What is First Step?

First Step isn’t just for first-time homebuyers. This program offers a 30-year fixed-rate mortgage designed for both first-time and repeat homebuyers.

Borrowers who need help covering upfront costs can also take advantage of down payment assistance (DPA). Eligible buyers may receive the lesser of 4% of the sales price or $10,000 as a 10-year second mortgage paired with their First Step loan. Using the DPA option is optional — borrowers can still use the First Step loan without it.

Who Counts as a First-Time Homebuyer?

A borrower is considered a first-time homebuyer if they have not had an ownership interest in a primary residence during the past three years from the date of the sales contract.

Why does this matter? Because eligibility rules change depending on the borrower’s status.

  • First-time homebuyers can purchase in any area of the state.

  • Repeat homebuyers can participate only if the property is located in a target area.

You can check property eligibility using the Target Map | AHFA.

  • Blue areas are target areas (open to both first-time and repeat homebuyers).

  • Gray areas are non-target areas (first-time buyers only).

If you’re unsure about a property’s designation, simply submit a Target ID Map Request to [email protected], and our team will return the completed form within one business day.

Keep an Eye on Income Limits

Just like staying within the foul lines, income limits apply to the First Step program. These limits vary depending on whether the property is located in a target or non-target area.

Before reserving the loan, make sure your borrower’s income falls within the current limits. You can always check the most up-to-date limits here: Income Limits | AHFA

If you still have questions, our Business Development Team is ready to help. Reach out anytime at [email protected].

How to Get in the Game

Getting started with First Step is easy:

  1. Pre-qualify your borrower for an FHA, USDA, VA, or Freddie Mac HFA Advantage loan.

  2. Reserve the loan through AHFA’s Lender Online portal (your company administrator can provide login credentials).

  3. Submit the Step 1 package with the commitment fee: 30-day reservation: 0.50% of the loan amount and 45-day reservation: 0.75% of the loan amount. Funds must be submitted within 72 hours of the loan reservation.

  4. Submit the Step 2 documentation according to the checklist (income documents, homebuyer education certificate, etc.).

AHFA provides a 48-hour turnaround for initial file reviews, and curative items are reviewed within 24 hours of submission.

Remember: Loans cannot close until AHFA has reviewed the Step 2 submission and issued the Conditional Commitment.

Cover Your Bases

For program manuals, income and sales price limits, training webinars, and the latest updates, visit: Homeownership | AHFA

With the right preparation and the First Step program in your lineup, you’ll be ready to bat a thousand all season long.