Alabama - Government Backed Loans

AHFA was created in 1980 by ACT No. 80-585 of the Alabama Legislature. AHFA is a public corporation dedicated to serving the housing needs of low and moderate-income Alabamians. This goal is accomplished through affordable financing of safe, sanitary single and multifamily housing.

Alabama

First Step

As a tax exempt Mortgage Revenue Bond program, First Step offers first-time homebuyers and low-income families lower than market, fixed interest rates on FHA, VA, Rural Development and conventional mortgage loans. First Step works in conjunction with the Alabama Housing Finance Authority, or AHFA, which provides, either $10, 000 or 5% of the home's sale price, whichever is lesser. The funds provided by AHFA go toward the home's downpayment and closing costs.

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Step Up

Since its inception in 2000, Step Up is Alabama's first downpayment assistance program. Designed for moderate-income families, Step Up helps homebuyers whose incomes allow them to sustain a market rate mortgage, but lack the savings to cover the downpayment and closing costs.

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Mortgage Credit Certificates - MCCs

Not to be confused with a mortgage, the Mortgage Credit Certificate program offers low- to moderate-income homebuyers a reduction on the amount of federal income tax that a homeowner pays, thereby increasing the amount of disposable income available to purchase a home.

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American Dream Downpayment Initiative - ADDI

The American Dream Downpayment Initiative is designed to relieve first-time homebuyers with low-incomes from of out-of-pocket expenses by offering $10,000 to be used against their first mortgage's principle balance. Funds through ADDI are on a first-come, first-served basis.

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