January 2026

New Year, New Growth:

‘Together We Build’ Alabama’s Future in 2026

As we look ahead to the new year, we’re excited to share our 2026 theme, Together We Build. This idea reflects our shared commitment to strengthening Alabama’s future: one home, one family, and one community at a time.

Working in tandem with real estate and mortgage professionals, AHFA provided $513 million to Alabama homebuyers in FY2025. We served more than 2,400 new borrowers, and 94 percent of these were first-time homebuyers. We also referred 2,335 potential customers to our network of participating lenders.

“AHFA’s First Step and Step Up programs, along with their accompanying down payment assistance loans, are making a real impact,” said Carrie Hamaker, single-family administrator. “Mortgage lenders and Realtors play a vital role in turning dreams of homeownership into reality. Together, we’re building stronger futures for the people of Alabama through homeownership.”

See current interest rates, sales price and income limits, and other homeownership program details at www.ahfa.com.

Social Media Series Features Financial Literacy Topics

AHFA has designed a new social media series to educate viewers on key topics that create more informed consumers and responsible homebuyers.

Themes so far have included repaying college debt, accessing credit reports, estate planning and the importance of insurance, with additional segments in the works. Visit our social media pages at Facebook, Instagram and LinkedIn to learn more and to share this resource with your customers.

Proceed with Caution When Consulting AI

AHFA urges users to ‘stick to the source’ at AHFA.com

AHFA has been made aware of AI sources that incorrectly assert that borrowers may use FHA’s 203(k) program with First Step or Step Up to finance both the purchase of a home and the cost of renovations. Do not be misled.

The 203(k) is not eligible to be used with AHFA programs, despite conflicting information found on multiple AI apps.

“Although AI tools can be useful, they are not fully reliable, as everyone knows,” said Single-Family Administrator Carrie Hamaker.

“If in doubt, always consult our professional staff at AHFA or visit our website at AHFA.com for the most accurate, up-to-date information available.”

New Video Resource Available:

Purchasing a Manufactured Home with AHFA Programs

Did you know that AHFA’s First Step and Step Up homeownership programs can be used for the purchase of a manufactured home? These programs are designed to help make homeownership more affordable and achievable for families across Alabama.

Nearly 12 percent of existing homes in our state are manufactured housing. This totals roughly 237,000 units that more than 600,000 people call home. A quarter of all new home sales in Alabama involve manufactured housing, with a median sales price of $112,000 that falls easily within AHFA program limits.

To explain how AHFA programs work with manufactured housing, Business Development Specialist Karlin Aultman has recorded an educational training session that covers financing considerations, program features, and where to begin. Simply click the video to get started, or bookmark this resource at AHFA.com.

Realtors and Lenders, Enroll Now and Let’s Connect!

School's back in session and so is AHFA! Brushing up on your skills and CE credit are a great way to kick off 2026. AHFA offers free on-site training for mortgage and real estate professionals. We'll come to you with the latest updates on our programs, 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 your session, email Alana Beaugez, or fill out our new online form at Training Resources | AHFA.

Current First Step

& Step Up Interest Rates

Below are the current interest rates for AHFA’s homeownership programs. Please note that rates are subject to change without notification.

First Step

FHA / VA / USDA: 5.750%
CONV-Freddie Mac: 6.250%

Step Up

FHA / VA / USDA: 6.250%
CONV-Freddie Mac: 6.625%

Holiday Closing

The AHFA and ServiSolutions offices will be closed on Monday, January 19 in observance of the federal and state holiday. We will reopen at 8 a.m. on Tuesday, January 20.

Alabama Housing Finance Authority | www.AHFA.com