Alabama Housing

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The Alabama Housing Finance Authority (AHFA) is a public corporation and agency of the State of Alabama created to serve the housing needs of low- and moderate-income Alabama residents. AHFA creates Alabama housing opportunities with affordable financing of single- and multi-family housing loans.

Step Up

A homeownership program designed specifically for moderate-income Alabama home buyers, the Step Up program provides assistance to buyers who can afford a mortgage, but need down payment assistance.

Down payment funds are secured by a 10-year second mortgage and combined with a 30-year, fixed-rate first mortgage. Loans are serviced by a department of AHFA, so homeowners have only one check to write each month. In order to qualify, eligible Step Up participants must complete a homebuyer education course.

Mortgage Credit Certificates

AHFA's Mortgage Credit Certificate (MCC) program provides Alabama homebuyers another savings option. This program may be combined with the Step Up program or any other 30-year, fixed-rate, amortizing mortgage offered by a participating lender. The program provides a tax credit to reduce the amount of federal taxes owed by a percentage of the annual mortgage interest paid each year. The remaining annual interest may be claimed as a mortgage interest deduction on the Alabama homebuyer's federal tax return.

The Alabama Housing MCC program allows qualifying homebuyers the benefit of lower federal income taxes as well as immediate savings by updating the withholdings on the W-4 form.

Mortgage Credit Certificates are available with conventional fixed-rate, FHA, VA, Rural Development and privately insured mortgages. Program participants must meet federally established income and sales price limits.

To learn more about how Alabama Housing programs could help you realize your dream of homeownership, or meet your refinancing needs, contact the Alabama mortgage experts at First Liberty.