Assistance program · Alabama
First Step Mortgage Revenue Bonds
Alabama state authority 30-year low-rate mortgage, for first-time buyers and for people who have owned a home before, with down payment assistance of 4% of the price, up to $10,000, as a ten-year second mortgage
At a glance
- Most it gives, per the source
- Up to 4% of the price, capped at $10,000
- What its page says; your amount depends on the price and the loan.
- Kind of help
- Repayable
- Second loan with monthly payments
- First-time buyer?
- No
- No first-time requirement
- Checked
- November 5, 2026
- Against the program's official page.
Type of help
What it is
- Second loan with monthly payments
What it gives
Up to 4% of the price, capped at $10,000
Source text
All borrowers are eligible for down payment assistance up to $10,000 or 4% of the sales price, whichever is lower. The down payment funds are secured by a 10-year second mortgage combined with the borrower’s 30-year, fixed-rate First Step mortgage. A summary of what the program publishes; not a loan offer or advice. Amounts, limits and funding change without notice.
At a glance
Who qualifies
Each answer comes from the program's page. "Not stated — ask" means its page doesn't make it clear: ask before you apply.
Source text
AHFA’s First Step program, which offers below-market, 30-year fixed mortgage interest rates to first-time or repeat homebuyers. … All participating borrowers will benefit from special low mortgage interest rates offered through First Step on FHA, VA, USDA, and Freddie Mac’s HFA Advantage conventional loans. … Borrowers must meet federally established sales price and income limits based on their area’s median income. … Meet standards for creditworthiness. … Live in the property. It cannot be used for business, commercial, or rental purposes. - First-time buyers only No
- Homebuyer course required Not stated — ask
- Minimum credit score Not stated — ask
- Income limit Per the program table (by county and household size)
- Price limit Per the program table
- Mortgages it works with FHA, VA, USDA, Conventional
- Immigration requirement Not stated — ask
- Accepts ITIN? Not stated — ask
- Spanish materials Not stated — ask
- Program status The source does not say whether it is open — ask
- Where it applies All of Alabama
What its page says about being open
Its page does not say whether the program is open or has funds. Ask the lender or the agency before counting on it. Read on the official page on November 5, 2026.
Your area in numbers
What buying costs in Alabama
The program covers all of Alabama. The first column is Alabama's figure; the second runs from the lowest to the highest among its counties. Limits change by county: check yours.
The program sets its maximum price in a table. Compare it with the typical home value in Alabama: $209,900.
The typical home value ($209,900) fits within Alabama's FHA limit ($541,287).
The program sets its income limit in its own table. For reference, HUD's low-income limit for 4 people in Alabama is $61,900.
| Figure | Alabama | Lowest to highest | Source |
|---|---|---|---|
| Typical home value | $209,900 | $81,200 (Greene County) to $326,100 (Shelby County) | U.S. Census Bureau |
| FHA limit (one-unit home) | $541,287 | $541,287 in all 67 counties | HUD |
| Conforming limit (one-unit home) | $832,750 | $832,750 in all 67 counties | FHFA |
| HUD low income (80%), household of 4 | $61,900 | $59,350 (Barbour County) to $92,100 (Madison County) | HUD |
Sources: American Community Survey (ACS) 5-year estimates (Average 2020–2024) · FHA mortgage limits (HUD) (2026 data) · Conforming loan limits (FHFA) (2026 data) · Income Limits (HUD) (Fiscal year 2026)
Step by step
How to use it, step by step
Each step comes from what the program's page says. What its page leaves out is further down, in the questions.
Find a participating lender-
Ask first whether it is open
Its page does not say whether it is open or still has funds. That is the first thing to ask.
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Find your county in the income table
The limit changes with the county and the number of people in your household. Count the income of everyone the program asks you to add.
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Check your county's maximum price
The program sets a maximum price per county in its table.
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Pick a mortgage it works with
According to its page, the help is used together with a FHA, VA, USDA and Conventional loan. Each loan type has its own requirements.
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Find a participating lender: state programs do not take applications directly; the lender reserves the assistance while processing your mortgage.
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Compare the total cost before you sign
Ask about the total cost. The mortgage with assistance may carry a higher rate than without it, and some programs charge for the course or a fee.
Before you call
What to ask
Its page leaves 6 points unclear. Write them down for when you talk to Alabama Housing Finance Authority.
What its page does not say
- Is it open now, and does it still have funds?
- Do you require a homebuyer course? Which ones do you accept, and what do they cost?
- What minimum credit score do you require?
- Which immigration status or residency documents do you ask for?
- Do you accept an ITIN?
- Do you have materials or staff in Spanish?
Worth asking for this kind of help
- What rate and monthly payment does the second loan have?
Against the others
How it compares with Alabama's other programs
The 3 programs we checked in Alabama, with the same fields from their official pages. "Doesn't say" means its page does not make it clear.
It is the only one of Alabama's 3 programs that says you do not need to be a first-time buyer. It is one of 2 out of 3 that publish an amount with the figure in their own wording. One other program in the state also gives "repayable" help: Step Up.
Swipe the table to see every column.
| Program | Kind of help | Published amount | First-time buyers only | Course required | Accepts ITIN | Where it applies |
|---|---|---|---|---|---|---|
| First Step Mortgage Revenue Bondsthis program | Repayable | Up to 4% of the price, capped at $10,000 | No | Doesn't say | Doesn't say | Statewide |
| Step Up | Repayable | Up to 4% of the price, capped at $10,000 | Doesn't say | Yes | Doesn't say | Statewide |
| Affordable Income Subsidy Grant | Grant | Not published | Doesn't say | Yes | Doesn't say | Statewide |
Sources
How we checked this program
We read the program's official pages on November 5, 2026 and copied their text as it appears on them. We add no amounts or requirements those pages do not state, and a program is listed as open or closed only when its page says so.
We check every program again. If more than 180 days pass without a check, the page says so.
Get free help applying
A HUD-approved housing counselor explains the program's requirements, goes over your numbers and tells you what to ask the lender. They do not sell loans.
Find a counselor (HUD)Read before you apply
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Help and programs
Down payment assistance: how it works
What down payment assistance is, the types that exist (grant, forgivable or deferred second loan, tax credit), who qualifies and where to find it.
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Mortgage loans
FHA loan: down payment, insurance, limits and who qualifies
How an FHA loan works: the down payment and credit score HUD requires, MIP mortgage insurance, your county limit, the home and the residency rules.
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Mortgage loans
VA home loans: who qualifies, the COE and what it costs
How a VA home loan works: who qualifies, getting your Certificate of Eligibility (COE), the funding fee and the rule that you must live in the home.
Your county
Price and income limits depend on the county. Your county page has the typical value, the FHA limit and the counseling agencies that can walk you through the application.