Boosting Buyers, Building Communities:

First Step Program Marks First Year of Relaunch

Schoolteachers, single moms, a University of Alabama retiree, and a choir director are among the 1,326 households whose mortgages AHFA made more affordable in the first year of the relaunched First Step program.

Since April 2024, homebuyers in 58 counties have benefited from interest rates as low as 5.5 percent, up to $10,000 per household in down payment assistance loans, and closing cost grants.

First-time homebuyers Mason and Taylor with their loan officer, Kelly Lankford of SWBC Mortgage

“Our lender and Realtor communities have responded incredibly well to AHFA’s First Step offerings,” said Single-Family Administrator Carrie Hamaker. “By closing nearly $264 million in loans this year for homebuyers ranging in age from 18 to 83, together we have helped families throughout our state find solid financial footing.”

New homeowner Terrianna Cook with her mortgage loan officer, Deja White-Wade of FirstBank

“Together, we have helped families throughout our state find

solid financial footing."

Carrie Hamaker, Single-Family Administrator

The average age of First Step participants in the past 12 months was 33.5 years. An overwhelming 98 percent of those were first-time homebuyers.

“Clearly, we are changing lives and making a positive impact on future generations,” said Hamaker. “Combined with the households helped when this program was initially offered many years ago, tens of thousands of Alabama families are enjoying the stability and security that homeownership brings.”

In the past year, First Step borrower incomes have averaged about $70,000, with average sales prices of $191,000 for existing homes and $244,000 for new construction.

First Step participant Tamika Knighten and spouse

“The economic impact of these transactions is significant for our 93 participating lenders, our homebuilders, the real estate community, and all of the related businesses involved in each loan closing,” Hamaker said. “But the most meaningful aspect is the satisfaction of knowing that thousands of our fellow citizens are able to afford homes of their own.”

See current First Step interest rates, income limits, and other program details at www.ahfa.com.

Photography by Taylor Scozzaro | Taylor Scozzaro Photography | @tscozzaro_photos

Are you a mortgage or real estate professional who wants to know more about AHFA programs? AHFA offers on-site training on our programs that covers borrower and property eligibility, processing, documentation, income calculations and more. Our “Doing Business with AHFA” class qualifies for 3 CEUs, certified by the Alabama Real Estate Commission. To schedule an informational visit or training session, simply email Alana Beaugez.

March 19: River Bank, Decatur

March 19: Southpoint Mortgage, Decatur

March 20: Kendall James Realty, Huntsville

First Step

• FHA / VA / USDA: 5.75%
• CONV-Freddie Mac: 6.25%

Step Up

• FHA / VA / USDA: 6.50%
• CONV-Freddie Mac: 7.00%

Alabama Housing Finance Authority | www.AHFA.com