August 2026

Homeownership 101: Class Is Back in Session

As students head back to the classroom, many families are settling into new routines and looking ahead to what’s next. For some, that may include taking the first steps toward homeownership before the end of the year.

AHFA’s First Step and Step Up programs continue to provide valuable financing solutions for homebuyers across Alabama while helping lending and Realtor partners better serve their clients.

Know the Difference:

First Step vs. Step Up

One of the most important lessons for prospective buyers is understanding which program best fits their situation.

First Step is available to homebuyers who meet special eligibility requirements, such as income limits and sales price limits. The program offers a below market 30-year fixed-rate mortgage and may be paired with down payment assistance. Use the target map to help determine each borrower’s requirements.

Step Up expands access to affordable financing for borrowers with a higher income who may not meet First Step requirements. The program provides a competitive 30-year fixed-rate mortgage along with down payment assistance, helping buyers who are mortgage-ready but need assistance with upfront expenses.

Turning Questions Into Closings

Many prospective buyers begin the process with the same concerns: “Do I have enough saved?” “Can I qualify?” or “How much home can I afford?” These conversations create opportunities for lenders and Realtors to introduce AHFA programs that can bridge the gap between uncertainty and homeownership.

By helping buyers understand their options earlier in the process, our participating lenders and Realtors can identify potential pathways to homeownership that the customer may not have considered before.

Helping Families Reach Their Next Milestone

Homeownership remains one of the most significant milestones they can achieve, and AHFA’s participating lenders and Realtors play an essential role in helping make that goal a reality.

As homebuying activity continues through this school year, we encourage our partners to keep AHFA’s First Step and Step Up programs top of mind and continue turning homeownership goals into successful closings across Alabama.

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

Top Lenders Awarded for Using AHFA Programs

Each quarter, AHFA recognizes the top loan officers who closed the most deals using our homeownership programs in the north, central, and south regions. We greatly appreciate their ongoing support as we work together to reach Alabama homebuyers.

North Region: Josh Barnes of Canopy Mortgage, Huntsville

Central Region: Shelley Faulkner of Guild Mortgage, Prattville

South Region: David Keenum of Embrace Home Loans, Mobile

Are you a mortgage or real estate professional who wants to know more about AHFA programs? AHFA offers on-site program training 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, fill out our online form at Training Resources | AHFA.

July 16: CE Class with AMPA, Daphne

July 21: CE Class with Trustmark, Selma

July 22: CE Class with First Federal Mortgage, Huntsville

Alabama Housing Finance Authority | www.AHFA.com