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.
Watch AHFA Board Member Joshua Dean share his family’s experience with the Step Up program.
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Program Income Limit:
Participants who earn $172,800 or less are eligible for the FHA/VA or Conventional (HFA Advantage) Step Up program, regardless of household size or location.
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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