Effective with new loan reservations starting today, the following changes have been made to our Step Up program:
Compensation
FHA Loans
- The SRP/YSP paid at loan purchase for the FHA Step UP program will increase from 1.30% to 2.50%
- Lenders cannot charge an origination fee or discount points
- Customary and reasonable discretionary fees are allowed
- The maximum income to the lender inclusive of the SRP/YSP and reasonable discretionary fees may not exceed 3.50% of the first mortgage amount
FHMC HFA Advantage Loans
- The SRP/YSP paid at loan purchase for the FHLMC HFA Advantage Step UP program will increase from 1.05% to 2.25%
- Lenders cannot charge an origination fee or discount points
- Customary and reasonable discretionary fees are allowed
- The maximum income to the lender inclusive of the SRP/YSP and reasonable discretionary fees may not exceed 3.50% of the first mortgage amount
Qualifying Income Increase
-
Maximum Qualifying Annual Income for homeowners on the FHA Step Up mortgage loan will increase from $97,300 to $130,600.
AHFA looks forward to providing more Alabamians with access to an affordable mortgage program and the ability to become successful long-term homeowners.
