Page Header

Homebuyers

What is Step Up?

Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment. 

The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month. Program participants must complete a homebuyer education course to qualify.

Participants who earn less than $97,300 are eligible for the Step Up program, regardless of household size or location.

Additional Information and Qualifications:

  • HFA Preferred conventional or HFA loans only
  • 3% down payment assistance available through Step Up
  • For new or existing homes in Alabama
  • Homebuyers must have a credit score of 620 or higher
  • Debt to income ratio must be 45% or lower
  • Homebuyers must complete a homeownership education course
  • Must apply for loan through a participating lender