First-time home buyer programs in Alabama
Alabama's AHFA Step Up program funds down payments with a 10-year second mortgage worth up to 3% of the purchase price, with one flat statewide income cap that keeps qualification simple.
Brokers in our network can pair these programs with competing loan offers — free, no obligation.
Step Up
AHFA's main down-payment program for low- and moderate-income Alabamians.
- Down payment assistance up to 3% of the purchase price
- Structured as a 10-year second mortgage paired with a 30-year fixed first
- Minimum 620 credit score
- One statewide income cap (about $97,300) — no county tables to decode
First Step
AHFA's first-time-buyer-focused companion program.
- Tailored to first-time buyers (3-year ownership rule)
- Pairs with FHA and conventional first mortgages
- Same simple statewide qualification approach
- Birmingham note: Jefferson County uses the 2026 FHA floor of $541,287
Program terms, income limits, and funding availability change throughout the year — confirm current details with AHFA or a licensed Alabama broker before relying on them.
Pair assistance with an FHA loan in Alabama
Most Alabama first-time buyers combine down payment assistance with an FHA first mortgage. 2026 FHA one-unit limits run from $541,287 (the national floor) up to $541,287 in Birmingham.
See all 2026 Alabama FHA loan limits →Find a broker in your Alabama market
Local brokers know which programs are funded right now and how to stack them:
Alabama first-time buyer FAQ
How much down payment help does Alabama offer?
AHFA's Step Up provides up to 3% of the purchase price, delivered as a 10-year second mortgage alongside a 30-year fixed first. First Step serves first-time buyers specifically.
What are Alabama's qualification rules?
A 620+ credit score and household income under roughly $97,300 — one flat statewide cap regardless of family size or county, which makes Alabama one of the simplest states to qualify in.
Do I apply to AHFA directly?
No — you work with an AHFA-participating lender, who originates the 30-year first mortgage and attaches the Step Up second at closing.
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