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Alabama program

First Step Mortgage Revenue Bonds

Alabama route through Alabama Housing Finance Authority (AHFA). This page stays free for the core public facts. Open paid access only when you need the full state board, related paths, and the decision layer around this program.

State-backed first mortgage plus second-mortgage assistance Check official rules 2026-04-21
Agency Alabama Housing Finance Authority (AHFA)
Support type State-backed first mortgage plus second-mortgage assistance
Amount highlight Down payment assistance second mortgage up to the lesser of $10,000 or 4% of the sales price, available when paired with the statewide First Step mortgage.
Last verified 2026-04-21

Open questions

Rates and target-area rules can move

This page stays public because the official structure is still useful, but these details should not be flattened into fake certainty.

AHFA publishes First Step as a live statewide option, but buyers should read the current rates and target-area tables together because rates can change without notice and the first-time-buyer rule changes by geography.

Decision-ready public facts

What stays free on this program page

Quick answer from published facts. Use this first, then jump to Go to Alabama program hub if you need the wider state context.

Amount

Down payment assistance second mortgage up to the lesser of $10,000 or 4% of the sales price, available when paired with the statewide First Step mortgage.

Type

State-backed first mortgage plus second-mortgage assistance

Repayment

First Step itself uses standard 30-year fixed first-mortgage repayment. The paired down payment assistance is documented as a 10-year second mortgage at closing, so borrowers should treat that assistance as a repayable second mortgage rather than a grant.

First-time buyer

Varies

Program guide

What to know before you click through

This is still the free fact layer. Open the official source when a detail affects eligibility, repayment, lender choice, or whether this path should stay on your shortlist.

Who qualifies?

Alabama homebuyers using an AHFA participating lender, First-time homebuyers in non-target areas who have not owned a home in the previous three years, First-time or repeat homebuyers buying in an AHFA target area, Borrowers meeting the current AHFA income, sales-price, credit, and debt-to-income rules

What support do you get?

Down payment assistance second mortgage up to the lesser of $10,000 or 4% of the sales price, available when paired with the statewide First Step mortgage.

Do you repay it?

First Step itself uses standard 30-year fixed first-mortgage repayment. The paired down payment assistance is documented as a 10-year second mortgage at closing, so borrowers should treat that assistance as a repayable second mortgage rather than a grant.

How do you apply?

Use an AHFA participating lender, choose the First Step 30-year fixed mortgage, confirm whether the property is in a target or non-target area, qualify under the current income and sales-price tables, and close the paired second-mortgage assistance through the lender because AHFA does not lend directly to consumers.

Official source evidence

AHFA's current First Step page says the program offers a 30-year fixed-rate mortgage with down payment assistance up to the lesser of $10,000 or 4% of the sales price as a 10-year second mortgage, while the current rate sheet, target-area map, and apply page confirm live rates and lender-based access.

View official source

Last verified

2026-04-21

AHFA live rate sheet and June 2, 2025 income and sales-price tables

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What paid access adds for First Step Mortgage Revenue Bonds

See the shape of the comparison output, risk checks, lender questions, and next-step checklist before you decide whether this program is worth carrying into the paid layer.

Example paid output for this program. The free page stays visible either way.

Comparison preview

First Step Mortgage Revenue Bonds

Amount: Down payment assistance second mortgage up to the lesser of $10,000 or 4% of the sales price, available when paired with the statewide First Step mortgage.

Repayment: First Step itself uses standard 30-year fixed first-mortgage repayment. The paired down payment assistance is documented as a 10-year second mortgage at closing, so borrowers should treat that assistance as a repayable second mortgage rather than a grant.

First-time buyer: Varies

Risk checks preview

What gets flagged before you call a lender

  • First Step Mortgage Revenue Bonds requires a participating lender.
  • First Step Mortgage Revenue Bonds must be paired with a specific first mortgage.

Lender questions preview

Questions tied to this exact path

  • Is your team approved to originate First Step Mortgage Revenue Bonds for this household and loan setup?
  • Which first-mortgage product must be paired with First Step Mortgage Revenue Bonds, and what breaks eligibility?

Action checklist preview

What you would do next

  • Review the official First Step program page for First Step Mortgage Revenue Bonds
  • Ask whether your lender is approved for this exact program and loan structure.
Open the full Alabama board

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What paid research already covers in Alabama

Paid research already tracks city and county programs, specialty and conditional paths for Alabama.

3 tracked deeper records

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What unlocks after payment

Specific program names, source notes, current-vs-conditional judgments, and the next lender or agency questions tied to this state.

1 tracked

city and county programs

City and county down payment or closing-cost programs that never make it into the free statewide layer.

2 tracked

specialty and conditional paths

Conditional, paused, or specialty paths worth checking before you assume the state is a dead end.

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What paid access adds after the free facts

This page stays free for public facts. Paid access turns this program into a shortlist item, a related-path decision layer, risk checks, lender-call prep, and a next-step queue.

If the public facts still look relevant, paid access is where you decide whether this path is stronger than your fallback and what to do next.

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