More than 1,100 Realtors and lenders across Alabama took advantage of AHFA training sessions in person and by Zoom to prepare for the new First Step program launch.

That preparation is paying off as attendees work with homebuyers to reserve a portion of the funds offered at low 5.5% and 6% interest rates, said Executive Director Robert Strickland.

"Demand for the First Step funds has been high, which is what we expected," he said. "We recognized the need for a mortgage loan product like this, and the market is responding well."

AHFA made the funds available on April 15 and accepted the very first reservation that same day — a $147,000 loan for a Decatur household.

"That was an exciting start, and demand has been steady ever since," said Strickland. "We are working to keep First Step funds available through the end of this calendar year to fill the gap for Alabama's low- to moderate-income homebuyers."

Through First Step, homebuyers who earn less than the median income for their area can apply for two special 30-year fixed mortgage interest rates: either 5.5% on FHA, VA, or USDA loans, or 6% on Freddie Mac HFA Advantage conventional loans. Available to Alabama homebuyers only through AHFA, applications are accepted on a first-come, first-served basis by a statewide network of participating lenders. Both rates include up to $10,000 in down payment assistance.

Click here to see program details, income and sales price limits, and a map for locating target and non-target areas. For more information, email us at lenderhelp@ahfa.com.

Ashleigh Jones of Front Porch Realty in Sylacauga was recently named one of AHFA's realtors of the year for helping the most families become homeowners using AHFA programs in FY2023.

Click the link at left to view a recap of our visit with Ashleigh and why she starts with Step Up when helping borrowers find homes.

Last year, lenders and realtors like Ashleigh helped 870 families from 52 counties become homeowners with AHFA’s Step Up program. Step Up provides competitive 30-year fixed mortgage interest rates and up to $10,000 in down payment assistance for households who earn less than $159,200 annually.

Since the year 2000, AHFA’s Step Up program has helped more than 21,000 Alabama homebuyers who can afford a monthly mortgage but need assistance with the down payment and closing costs. These funds can be combined with an Affordable Income Subsidy Grant and a Mortgage Credit Certificate to further boost their purchasing power. For more information, visit https://www.ahfa.com/homebuyers/programs-available.

May 9: Award presentation to 2Q24 leading lender Lindsey Nance, Movement Mortgage

May 9: Lunch & Learn class with Stockton Mortgage, Rainbow City