September 2025 Lender News from AHFA

New Credit Score Model Expands Access

for Homebuyers with Limited Credit History

A new credit scoring model accepted for all mortgages sold to Fannie Mae and Freddie Mac may increase the pool of potential homebuyers who are eligible for AHFA programs. Vantage Score 4.0 is designed to help first-time buyers, renters, and those with low to moderate income — particularly younger buyers or underserved populations with shorter credit histories.

Key changes include:

Only one month of credit history is needed to get a score, compared to six months for classic FICO scoring.
Paid collections, including nonmedical, do not impact the score.
Unpaid medical debt does not impact the score.
Regular rent and utility payments can improve the score.

“These changes could open the door to homeownership for thousands of Alabamians who have been locked out by traditional credit scoring,” said AHFA Single-Family Administrator Carrie Hamaker. “Better credit access leads to greater opportunities for the customers that AHFA programs are designed to help — and for our Realtors and participating lenders who serve them.”

“ ... 21% of millennials have

‘thin files,’ making it difficult

for lenders to see them

as strong borrowers

and leading to more young consumers not able to get the credit they need.”

Source: VantageScore.com

For more information, visit Credit Scores | FHFA or email lenderhelp@ahfa.com.

Step Up Program Celebrates Quarter Century

September 8 marked the 25th anniversary of AHFA’s Step Up program. From first keys to forever homes, we’ve been boosting buyers’ down payment budgets for a quarter century. Thanks to all the mortgage and real estate pros who work alongside us to open doors. Here’s to the families, the milestones, and the memories—and cheers to 25 more years!

AHFA Hosts ‘Housing Market Check-In’ Webinar

On September 11, AHFA hosted a free webinar featuring expert insights from AHFA Business Development Specialist Alana Beaugez, Jim Hall of Freddie Mac, and Dr. Agnitra Roy Choudhury, associate professor of economics at AUM. AHFA’s new Business Development Specialist Karlin Aultman also participated.

Attendees gained valuable takeaways on common file submission errors and how to avoid them, discussed the current economic environment and its impact on housing finance, and heard key updates from Freddie Mac.

Do You Have a Story

Worth Sharing?

Tell us about your most memorable customer experience or a deal you helped close using AHFA loan products. Whether it was a first-time homebuyer’s dream come true or a unique challenge you helped overcome, we’d love to highlight your story here and across our social media channels.

Your experience could inspire others, showcase the impact of AHFA programs, and help us build a library of real-life success stories. Submit your story today and let’s celebrate the difference you’re making.

New AHFA.com Set to Launch

AHFA’s newly redesigned website is scheduled to go live this Thursday, September 18 at 7 a.m. The updated site will offer streamlined navigation, improved accessibility, and easier access to resources for homebuyers, lenders, realtors, and industry professionals. We’re excited to share this new chapter with you.

Realtors and Lenders, Let's Connect! We Want to Meet You!

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 .