AHFA First Step

AHFA's First Step Mortgage Revenue Bonds program offers below-market, 30-year fixed mortgage rates to Alabama homebuyers (first-time or repeat) through FHA, VA, USDA, and Freddie Mac's HFA Advantage loans, with ServiSolutions servicing for a single monthly payment. Borrowers can receive down payment assistance up to $10,000 or 4% of the sales price (whichever is lower), funded by a 10-year second mortgage in addition to the 30-year First Step loan, and may be eligible for the Affordable Income Subsidy Grant when using Freddie Mac's HFA Advantage. Eligibility requires meeting area income and sales price limits, living in the home, and not using the loan for business or rental purposes, with property location verified via the Target Area Status Map.

AI named AHFA First Step from August 2026 to September 2026.