Alabama Step Up

Alabama Housing Finance Authority offers Step Up to home buyers in Alabama: as much as 4% of the price, with $10,000 as the cap, as a repayable loan.

Amount: As much as 4% of the price, with $10,000 as the cap
Type of assistance: Loan you repay
Only first-time buyers: No
Your credit score: At least 640

How do you pay back Alabama Step Up?

This help is a second mortgage with a 10 year term, and you repay it monthly with your primary mortgage.

A repayable loan means a small second mortgage, one you pay off month by month, usually as part of your main home loan payment.

Who can get Alabama Step Up?

The income limit is $172,800 for every household size and every location, and you must be at or below it.
Being a first-time buyer isn't required.
Your credit score needs to reach 640 or above.
Before you buy, take a homebuyer education course.
A participating lender provides the 30-year fixed-rate first mortgage with this help: FHA, VA, USDA or an HFA Advantage conventional option.

Your county and household size set most limits. Use our HUD income limits tool to see your area's median income and your household's position.

Alabama Step Up application steps

To get this help, apply together with your home loan through an approved lender; Alabama Housing Finance Authority pays it out through those lenders.
Your income, your credit and the home are checked against the program's rules by the lender, who then reserves the money for you.
This money is paid at closing and goes toward the down payment and closing costs you owe.

See Alabama Housing Finance Authority's page for Step Up for the full rules and application status, or choose from the agency's participating lender list.

Talk with a lender about Alabama Step Up

Tell us where you're buying and a lender that works with Alabama's programs can tell you whether Alabama Step Up fits you, and what you could combine with it.

Call 866-602-7460

Don't feel like calling? Leave your information and the lender will contact you.

More Alabama programs for first-time buyers

Alabama First Step Mortgage Revenue Bonds (down payment assistance):
A repayable loan worth up to 4% of the home's price, at most $10,000.
Alabama Affordable Income Subsidy Grant:
A grant of up to $2,500.

All Alabama programs for first-time home buyers · Down payment help for every state