November News

First Step vs. Step Up:

Which Program is the Best Path for Your Buyer?

AHFA’s First Step and Step Up programs are two powerful tools helping Alabama families overcome the barrier of saving for a down payment. Together they have supported more than 72,000 households to date.

Both programs offer up to $10,000 in down payment assistance and access to an Affordable Income Subsidy Grant. Each requires a minimum credit score of 640 and a maximum debt-to-income ratio of 45 percent, and both can be used with FHA, VA, USDA, or HFA Conventional loans on new or existing homes. While both programs serve a broad range of buyers, they reach slightly different audiences.

AHFA Single-Family Administrator Carrie Hamaker explained that First Step is a Mortgage Revenue Bond (MRB) program, designed specifically for first-time homebuyers. Because it’s financed through the sale of tax-exempt bonds, First Step typically offers lower-than-market interest rates, making monthly payments more affordable. In addition, those lower rates come with location-based income and purchase price limits established by the IRS, ensuring the program targets households with modest means while promoting affordable housing throughout Alabama.

By contrast, Step Up is a market-rate program that does not rely on bond financing. With a generous statewide income limit and no purchase price cap, it’s ideal for repeat buyers and middle-market households whose incomes may exceed MRB thresholds but who still need help bridging the gap for a down payment.

“Whether bond-funded or market-rate, both programs work in tandem to make homeownership possible for thousands of Alabamians each year,” said Hamaker. “First Step and Step Up complement each other. They are two paths leading to the same goal: affordable, sustainable homeownership.”

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

Top 4Q25 Lenders Awarded for Using AHFA Programs

Each quarter, AHFA applauds the individual lenders and the lending company who closed the most loans using the First Step and Step Up programs. Winners for the fourth quarter of the 2025 fiscal year are listed below. We’ll be highlighting them individually on social media in the weeks to come.

Individual Leading Lenders

The leading lenders who closed the most loans using AHFA programs for 4Q25 are listed below..

Chad Cantrell, Canopy Mortgage

Matthew Stringfellow, Trustmark Bank

Kevin Bader, Prosperity Home Mortgage, LLC

Top Participating Lending Company

Our top participating lender company for 4Q25 is Guild Mortgage. 

We asked Guild Mortgage lenders how AHFA helps position lenders to be a trusted homeownership expert in their communities. Stay tuned for their responses on upcoming newsletters and social media posts.

Congratulations to all of our winners! We appreciate them for using AHFA programs to help homebuyers.

AHFA Leads MBAA Event with Key Industry Insights

AHFA proudly sponsored the Mortgage Bankers Association of Alabama’s recent event, spotlighting timely topics in housing and finance. Karlin Aultman from AHFA’s Business Development Team joined industry experts to share valuable updates:

• Karlin Aultman showcased AHFA’s First Step and Step Up programs, guiding attendees through financing options for manufactured homes.
• Zakk Stringer (CIC Credit) broke down the new VantageScore Model and its impact on lending.
• Connor Hogan (Country Financial) tackled rising insurance premiums and market trends.

The event was held on October 21 at the Homebuilders Association of Alabama in Montgomery and aimed to teach industry professionals how to stay ahead in a shifting market.

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, email our Business Development Team.

Oct. 8: Alabama Home Builders Foundation Golf Tournament, Prattville

Oct. 14: Alabama Association of REALTORS Annual Conference, Point Clear

Oct. 15: Lunch & Learn, First Federal Bank, Huntsville

Oct. 20: Lender visit with Stockton Mortgage, Cullman

Oct. 21: Realtor CE class with Pinnacle Financial, Huntsville

Oct. 28: CE class with FirstBank Mortgage, Mobile

Oct. 29: CE class with FirstBank Mortgage, Fairhope

Oct. 29: Lender Visit with Bryant Bank, Daphne

Schedule your visit today by emailing our Business Development Team.

First Step



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

Step Up 



• FHA / VA / USDA: 6.25%
• CONV-Freddie Mac: 6.625%

Alabama Housing Finance Authority | www.AHFA.com