Tips for Buying Your First Home | Alabama Housing Finance Authority
Tips for Buying Your First Home · 1. Get credit ready. · 2. Know what you can afford. · 3. Start saving for your down payment. · 4. Find a lender you can trust.
Mortgage Credit Certificate
In addition to federal programs, many states offer assistance programs for first-time home buyers with perks such as down payment assistance, closing cost assistance, tax credits, and discounted interest rates. AHFA offers a dollar-for-dollar tax credit through the <anchor>Mortgage Credit Certificate</anchor> as well as an affordable income subsidy grant for certain qualified borrowers. Both of these can be combined with Step Up’s affordable financing and down payment assistance for even greater purchasing power.
Step Up | Alabama Housing Finance Authority
Step Up \| Alabama Housing Finance Authority

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## Homebuyers

[Home](/) \| [Homebuyers](/homebuyers)  \| [Programs Available](/homebuyers/programs-available)  \| [Step Up](/homebuyers/programs-available/step-up)

# 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.

## Program Income Limit:

- Participants who earn $159,200 or less _are eligible_ for the FHA/VA or Conventional (HFA Advantage) Step Up program, regardless of household size or location.

## Additional Information and Qualifications:

- HFA Advantage conventional, FHA, VA, USDA loans only
- Amount of assistance: 4% of the sales price up to $10,000
- For new or existing homes in Alabama
- Minimum credit requirements: 640 for all programs
- Debt to income ratio must be 45% or lower
- Homebuyers must complete a homeownership education course
- Must apply for loan through [a participating lender](http://www.ahfa.com/homebuyers/how-do-i-apply)

* * *

![Stewart Family, Cordova](/Content/Uploads/ahfa.com/Images/Content/DSC00359_for thumbnail.jpg)

[**Stewart Family, Cordova**](/homebuyers/programs-available/step-up/success-stories-stewart-family-cordova)[![Read Story](/Content/Uploads/ahfa.com/images/arrow-icon.png)](/homebuyers/programs-available/step-up/success-stories-stewart-family-cordova)

![Shanna & Joseph Seay, Fairhope](/Content/Uploads/ahfa.com/Images/Content/13015373_510336305824316_2231233691933862874_n_for thumbnail.jpg)

[**Shanna & Joseph Seay, Fairhope**](/homebuyers/programs-available/step-up/success-stories-shanna-joseph-seay-fairhope)[![Read Story](/Content/Uploads/ahfa.com/images/arrow-icon.png)](/homebuyers/programs-available/step-up/success-stories-shanna-joseph-seay-fairhope)

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Accomplishments](/about/history-accomplishments)
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