AHFA Gifts To Alabama First Time Home Buyers

The Alabama Housing Finance Authority (AHFA) offers a down payment assistance program to first time home buyers who earn less than $97,300 per year.




Alabama First Time Home Buyer GrantsStep Up is an Alabama first time home buyer grant program designed specifically for moderate-income home buyers who can afford a mortgage, but need assistance coming up 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. Program participants are required to complete a homebuyer education course to qualify.

This program is not a grant, but is meant to assist first time buyers who need down payment and closing cost assistance.

There is, however, one grant program available: the Mortgage Credit Certificate. A Mortgage Credit Certificate (MCC) reduces the amount of federal income tax homebuyers must pay, which in turn frees up income to qualify for a mortgage. Borrowers can claim a tax credit up to 50 percent of the mortgage interest paid per yer, capped at $2,000 annually. It is a dollar-for-dollar reduction against a borrower’s federal tax liability, and is a direct grant.

To learn more about the Mortgage Credit Certificate, visit the AHFA web page here.

To learn more about down payment assistance, vist the AHFA web page here.






To contact the Alabama Housing Finance Authority regarding either of these programs:

Alabama Housing Finance Authority
7460 Halcyon Pointe Drive, Suite 200
Montgomery, AL 36117
Alabama: 334.244.9200
Toll-Free: 800.325.2432Ā FREE
FAX: 334.244.9214