New, Higher Income and Sales Price Limits

Open AHFA Programs to More Homebuyers

Alabama lenders and Realtors can use AHFA’s popular First Step MRB and MCC programs to help more homebuyers, thanks to increased income and sales price limits effective June 2.

Set by the U.S. Department of Housing and Urban Development, the new income limits increased over 2024 figures by as much as 4 percent due to changing median incomes and economic gains. Qualifying households now can earn up to $161,700 annually, depending on the home’s location and family size. The maximum sales price for the home purchase has risen as well, to $665,173 in “target” areas and $544,233 in “non-target” areas. The status of nearly all residential addresses in Alabama can be checked by using the Target & Non-Target Areas tool on AHFA.com.

“These homeownership programs result in real savings over the life of a mortgage loan,” said AHFA Single-Family Administrator Carrie Hamaker. “Even in constantly changing market conditions, homeownership remains one of the clearest paths to economic stability and strong communities.”

All Hands on Deck:

First Step Team Helps Hospitalized Homebuyer

Through AHFA’s First Step program, Drakeda Horne turned her dream of homeownership into reality — and we couldn’t be prouder to share her story.

Drakeda, a caregiver at a senior facility and mother of three, worked with Elisha Hollis and Stacey Hobbs of Century 21 James Grant Realty, along with Pam Hughes Boyd at Fairway Mortgage, to navigate the journey to her first home in Dothan. With determination, teamwork, and the support of the First Step program, they sailed smoothly through the stormy seas of tight timelines, loan requirements, and limited resources to find the perfect home.

AHFA and Fairway celebrate with new homeowner Horne

The Horne family with the Century 21 James Grant Realty team

Just days before closing, Drakeda was unexpectedly hospitalized. But thanks to a compassionate and committed team, her dream stayed on course.

Closing was delayed just long enough for her to recover, and when the big day arrived, emotions ran high — there wasn’t a dry eye in the room.

“We’re honored that the First Step program could play a role in a new beginning for the Horne family,” said AHFA Single-Family Administrator Carrie Hamaker. “Our low mortgage interest rates, down payment assistance loans, and closing cost grants provide a steady anchor for Alabamians who are ready to seek homeownership.”

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

Children’s Art Contest Entries Due June 25

In celebration of National Homeownership Month, AHFA is offering its Kids’ Art Contest for 2025.

This year’s theme is “Sunshine and Smiles in Alabama Style.” Children ages 5–12 who live in Alabama are invited to showcase what makes Alabama a bright and happy place to call home.

To enter, click here https://woobox.com/wdzypf.

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 a visit or training session, email Alana Beaugez.

May 7: AMPA Event with Mark Smith, Kind Lending

May 7: AMPA Event with Darlene Hill, SouthPoint Mortgage

May 14: MBAAL Convention, Birmingham

May 23: Lender visit with Presidential Mortgage, Birmingham

June 6: Lender visit with Guild Mortgage, Prattville

June 9: Lender visit with Assurance Financial, Huntsville

June 9: Lender visit with First Federal, Huntsville

June 9: Lender visit with Stockton Mortgage, Huntsville

June 10: CE class hosted by Rate Mortgage and Keller Williams, Madison

First Step



• FHA / VA / USDA: 6.00%
• CONV-Freddie Mac: 6.50%

Step Up 



• FHA / VA / USDA: 6.75%
• CONV-Freddie Mac: 7.25%

Alabama Housing Finance Authority | www.AHFA.com