Bonds are Back!

First Step Funds Open Doors for First-Time Home Buyers

AHFA’s First Step program recently made the difference for first-time home buyers Mason and Taylor of Silverhill. Their loan officer, Kelly Lankford of SWBC Mortgage, said her buyers were much more prepared than most young couples she encounters.

“They’d had a good education from their parents and they were very disciplined in saving and getting ready to become responsible homeowners,” said Kelly. “They worked all through college and in multiple jobs to reduce their debts and save for a down payment.”

In addition to their own savings, Mason and Taylor benefited from the full $10,000 in down payment assistance offered by AHFA to boost their buying power on their FHA mortgage.

“AHFA’s programs have opened the door to so many people who thought they could never own a home, especially when they’ve been paying rent prices higher than what a mortgage payment would be,” said Kelly. “It’s very hard to save for a down payment when you are spending it all on rent.”

Kelly said that this was her first time to close a First Step loan at SWBC since the return of the program. Everything went so smoothly that her clients never knew they were her first until the deal was done, and now she has three First Step loan closings this month.

“I had a great experience,” she said. “Actually, I’ve never had a bad experience with AHFA. It’s one of the very first programs I consider, and I’m very thankful for it.”

Homebuyer Mason shared his gratitude to Kelly for steering them toward

“First Step is helping us

get new buyers

that we were losing.

It’s made us very competitive."

Kelly Lankford, SWBC Mortgage

First-time homebuyers Mason and Taylor with their loan officer, Kelly Lankford of SWBC Mortgage

assistance that helped their family of three buy a home.

“Mrs. Kelly did an absolutely outstanding job as our housing lender during the process of purchasing our home in Silverhill!" said Mason. "She was very helpful, providing us with step-by-step templates which gave us detailed and specific information through our loan process.”

First Step has been particularly helpful in Baldwin County, where the cost of living is high compared to the wages most people earn in the area, said Kelly.

“Our incomes aren’t matching our housing prices, especially with market-rate mortgages,” she explained. “But with First Step, I’m seeing young people able to qualify, even if they’re not in target areas, because they haven’t been on the job too long and are just starting out. So they easily meet the income limits.”

Despite facing some of the most challenging market conditions in her 25-year banking career, Kelly said that First Step is helping her compete.

“First Step is helping us get new buyers that we were losing. It’s made us very competitive. We’ve been seeing the lowest pool of buyers ever, and First Step is helping us out of the valley,” she said. “This program has been my saving grace.”

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

Save the Date: AHFA Co-Hosting MBAA Event August 20

Mark your calendars and register now for a half-day, can't-miss event co-hosted by AHFA and the Mortgage Bankers Association of Alabama on Tuesday, August 20 in Montgomery. Representatives from the Federal Home Loan Bank, USDA, Birmingham and Montgomery housing authorities, and more will show attendees how to "think outside the box" by combining homebuyer assistance programs. Lunch is included and features speaker Stuart Norton of the Alabama Center for Real Estate.

Avoid Common Submission Mistakes with New Checklist

Since the relaunch of the First Step program, we have noticed a few errors that commonly appear during the submission of Step 1 & Step 2 packages. Please refer to this link for a helpful chart of typical mistakes and how to correct them, and be sure to email us at lenderhelp@ahfa.com with specific questions.

Our 1st Place winner is Alice Wu from Huntsville, Alabama. She highlighted the U.S. Space & Rocket Center in her hometown.

Nehara Bakshi from Birmingham, Alabama, won 2nd place for spotlighting various parts of the "Magic City" she calls home.

The 3rd Place winner was Lillian Roper from Southside, Alabama. She focused on a popular landmark in her hometown, the Coosa River bridge, at sunset.

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.

First Step

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

Step Up 

• FHA / VA / USDA: 6.750%
• CONV-Freddie Mac: 7.250%