State Program
Step Up Program – Alabama Housing Assistance
The Step Up Program assists moderate-income homebuyers in Alabama who can afford a mortgage but need help with the down payment.
Program Details
**The Step Up Program** helps qualified buyers by combining a 30-year fixed-rate first mortgage with a 10-year second mortgage for down payment assistance. These programs *may support* both new and existing home purchases and are **administered by AHFA**. Eligible borrowers can obtain down payment help that is repaid over time, making homeownership more attainable in Alabama.
**Why Choose Step Up?**
- Step Up is perfect for buyers who have stable income but struggle to save a down payment while renting.
- The second mortgage for down payment can be paid off early with no prepayment penalty, reducing interest paid over time.
- Pre-approval is encouraged so you know your budget before house hunting.
- Work with an AHFA-participating lender to access the best local knowledge.
**Why Choose Step Up?**
- Step Up is perfect for buyers who have stable income but struggle to save a down payment while renting.
- The second mortgage for down payment can be paid off early with no prepayment penalty, reducing interest paid over time.
- Pre-approval is encouraged so you know your budget before house hunting.
- Work with an AHFA-participating lender to access the best local knowledge.
Eligibility Requirements
- Must purchase a new or existing home in Alabama
- Annual household income cannot exceed $159,200
- Minimum credit score of 640
- Debt-to-income ratio must be 45% or lower
- Must complete a homebuyer education course
- Must apply through a participating lender
- Annual household income cannot exceed $159,200
- Minimum credit score of 640
- Debt-to-income ratio must be 45% or lower
- Must complete a homebuyer education course
- Must apply through a participating lender
Program Benefits
- Provides 4% of the sales price (up to $10,000) for down payment assistance
- Combines first and second mortgages into one payment
- Available for FHA, VA, USDA, and conventional loans
- Combines first and second mortgages into one payment
- Available for FHA, VA, USDA, and conventional loans
How to Apply
1. Verify eligibility criteria
2. Complete a homebuyer education course
3. Contact a participating lender
4. Submit required documentation
5. Complete loan application and processing
2. Complete a homebuyer education course
3. Contact a participating lender
4. Submit required documentation
5. Complete loan application and processing
Program Overview
Category
State Program
Maximum Assistance
$10,000
Official Program Website
Information about this program is provided as a resource and may be subject to change. Always verify details with the official program website.
Important Note
Program availability, terms, and requirements may vary by lender and location. Additionally, programs are subject to change based on policy updates and market conditions. Always consult with a mortgage professional for the most current information and to determine eligibility for specific programs.