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.