Here you will find all of the information you will need to determine if this is the right loan for you.
Alabama Housing Bond Loans are provided to residents of Alabama by the AHFA (Alabama Housing Finance Authority). This public corporation was founded in 1980 to assist low to moderate income individuals get affordable financing for real estate in the state of Alabama. The AHFA has helped over 122,000 families move into a home since it began with it's financing programs "First Step" and "Step Up". Both financing options provide low interest rates and down payment assistance on fixed rate 30 year mortgages. To qualify for either program you must complete a homebuyer's education course. In addition to securing a Alabama Bond Loan, some home owners also qualify for a "MCC" (Mortgage Credit Certificate). No matter what loan you end up picking, getting a MCC makes getting a home even easier.
Step Up Program is a loan program intended for moderate-income home buyers who can afford a mortgage, but need help with the FHA down payment. The Alabama Loan Program offers down payment assistance with no limit on the home sales price and income limits that are not as restrictive as the First Step Program. This makes the Step Up Program for people in the Alabama Real-Estate Market looking for a new home very obtainable.
Down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. The loans are serviced by the Alabama Loan Program, so that homeowners have only one check to write each month.
The First Step Program is made possible by the Alabama Loan Program selling tax exempt mortgage revenue bonds. The money made from the bonds is used by AHFA to purchase mortgages from participating lenders which in turn helps funds the loans made by lenders for homebuyers. AHFA also provides closing cost assistance with this program as well since the down payment is usually the biggest hurdle in the home buying process. There are income limits as well as a home sales price limit with this program.
The MCC is a Federal Income Tax Credit program. A MCC increases the amount of home you qualify for and it lets you take-home more money per paycheck. It grants you a federal income tax credit of thirty-five percent (35%) of the yearly interest you pay on your home mortgage. Since the MCC reduces your federal taxes and increases your net earnings, it is a great aid in qualifying for your first home mortgage. The benefits don't end there though! The MCC is registered with the IRS, and it continually decreases your federal income taxes each year for as long as you live in the home. This mortgage program has income limits based off where you live just like the First Step and Step Up Programs as well as purchase price limits on the property you are looking to buy. You can find this information on our "Will My Income Qualify?" page.
Use the link to our Budget Planner Worksheet in combination with our Monthly Payment Calculator to the left to help you set your budget and figure out where your finances go. These tools together will help you determine the mortgage payment you can afford. It is important to make sure you never buy a home that will hurt you financially. If you have any questions about the information provided on this site; please call us at 251-281-1545