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Get Matched Free →First-Time Homebuyer Programs in Alabama
Alabama offers several homebuyer assistance programs through the Alabama Housing Finance Authority (AHFA). The Step Up program provides up to $10,000 in down payment assistance via a 10-year second mortgage, while the First Step program combines below-market interest rates with up to $10,000 in DPA for first-time buyers. AHFA also offers a Mortgage Credit Certificate providing up to $2,000 per year in federal tax credits, and the Affordable Income Subsidy Grant for lower-income conventional loan borrowers.
Statewide Programs in Alabama
- AHFA Affordable Income Subsidy Grant
Grant · 0.50% to 1% of total loan amount
- AHFA First Step Program
Deferred Loan · Up to $10,000 or 4% of sales price, whichever is less
- AHFA Step Up Program
Deferred Loan · Up to $10,000 or 4% of purchase price, whichever is less
- Alabama Mortgage Credit Certificate (MCC)
Tax Credit · Up to $2,000 per year in federal tax credits
- FHLBA Community Partners Product
Forgivable Loan · Up to $20,000 in home purchase assistance for down payment and closing costs
- FHLBA First Time Homebuyer Product
Forgivable Loan · Up to $17,500 in home purchase assistance for down payment and closing costs
- FHLBA Workforce Housing Plus+
Grant · Up to $15,000 in home purchase assistance for down payment and closing costs
Cities in Alabama
Auburn
Lee County
Birmingham
Jefferson County
Decatur
Morgan County
Dothan
Houston County
Florence
Lauderdale County
Hoover
Jefferson County / Shelby County
Huntsville
Madison County
Madison
Madison County
Mobile
Mobile County
Montgomery
Montgomery County
Opelika
Lee County
Phenix City
Russell County
Prattville
Autauga County
Tuscaloosa
Tuscaloosa County
Vestavia Hills
Jefferson County