New Year - New Changes to Step Up Home Financing Program!
January 11, 2022
Read more online @ https://www.ahfa.com/homebuyers/programs-available/step-up
We've heard from many lenders over the past few months who have shared the hardships low-to moderate-income homebuyers are encountering in the current market: lack of sellers paying closing costs, increasing sales prices, low inventory, etc.
With that insight in mind, we are excited to announce two new changes to the Step Up program. These changes are effective Wednesday, January 12.
Increased Assistance Amounts
Now homebuyers can receive even more down payment assistance with AHFA’s Step Up program. Effective January 12, the maximum down payment assistance will increase from $7,500 or 3% of the sales price (whichever is less) to $10,000 or up to 4% of the sales price (whichever is less), allowing a portion to pay homebuyer closing costs!
VA First Mortgage Program
Now offering a first mortgage option for veterans that can be combined with down payment/closing cost assistance of up to $10,000 or 4% of sale price (whichever is less).
2021 Area Median Income for Baldwin County, Alabama is $74,300
What is Step Up?
Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.
The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month.
Program participants must complete a homebuyer education course to qualify.
Program Income Limit:
Participants who earn $130,600 or less are eligible for the FHA/VA Step Up program, regardless of household size or location.
Participants who earn 80 percent or less of the Area Median Income (AMI) for property location OR $130,600 (whichever is less) are eligible for Conventional Step Up (HFA Advantage).
Participants who earn over 80 percent of the Area Median Income (AMI) for property location but less than $130,600 are eligible for Freddie Mac Advantage Loan Product.
Additional Information and Qualifications:
- HFA Advantage conventional, FHA, VA loans only
- Amount of assistance: 4% of the sales price up to $10,000
- For new or existing homes in Alabama
- Minimum credit requirementsFor FHA/VA/HFA Advantage 80% or less of the AMI: 640
- For HFA Advantage over 80% of the AMI, but less than $130,600: 680
- Debt to income ratio must be 45% or lower
- Homebuyers must complete a homeownership education course
- Must apply for loan through a participating lender - please contact Nicole Smith for a list of local lenders.
January 11, 2022
Read more online @ https://www.ahfa.com/homebuyers/programs-available/step-up
We've heard from many lenders over the past few months who have shared the hardships low-to moderate-income homebuyers are encountering in the current market: lack of sellers paying closing costs, increasing sales prices, low inventory, etc.
With that insight in mind, we are excited to announce two new changes to the Step Up program. These changes are effective Wednesday, January 12.
Increased Assistance Amounts
Now homebuyers can receive even more down payment assistance with AHFA’s Step Up program. Effective January 12, the maximum down payment assistance will increase from $7,500 or 3% of the sales price (whichever is less) to $10,000 or up to 4% of the sales price (whichever is less), allowing a portion to pay homebuyer closing costs!
VA First Mortgage Program
Now offering a first mortgage option for veterans that can be combined with down payment/closing cost assistance of up to $10,000 or 4% of sale price (whichever is less).
2021 Area Median Income for Baldwin County, Alabama is $74,300
What is Step Up?
Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage, but need help with the down payment.
The down payment funds are secured by a 10-year second mortgage and are combined with a 30-year, fixed-rate first mortgage. Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month.
Program participants must complete a homebuyer education course to qualify.
Program Income Limit:
Participants who earn $130,600 or less are eligible for the FHA/VA Step Up program, regardless of household size or location.
Participants who earn 80 percent or less of the Area Median Income (AMI) for property location OR $130,600 (whichever is less) are eligible for Conventional Step Up (HFA Advantage).
Participants who earn over 80 percent of the Area Median Income (AMI) for property location but less than $130,600 are eligible for Freddie Mac Advantage Loan Product.
Additional Information and Qualifications:
- HFA Advantage conventional, FHA, VA loans only
- Amount of assistance: 4% of the sales price up to $10,000
- For new or existing homes in Alabama
- Minimum credit requirementsFor FHA/VA/HFA Advantage 80% or less of the AMI: 640
- For HFA Advantage over 80% of the AMI, but less than $130,600: 680
- Debt to income ratio must be 45% or lower
- Homebuyers must complete a homeownership education course
- Must apply for loan through a participating lender - please contact Nicole Smith for a list of local lenders.
MORTGAGE CALCULATOR
Use our home loan calculator to estimate your total mortgage payment, including taxes and insurance. Simply enter the price of the home, your down payment, and details about the home loan, to calculate your mortgage payment, schedule, and more.
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Your mortgage payments over 30 years will add up to $0.
Get more info from a local Baldwin County Real Estate expert!