If you're a first-time home buyer and Alabama is your sweet home, you’re in luck. National programs are available to make owning a first home more affordable. And since 1980, Alabama Housing Finance Authority, or AHFA, has helped thousands of families — many of them first-time home buyers — afford homes through its loan programs.

Here’s what to know about national and state programs available to Alabamians and what you need to qualify.

National first-time home buyer programs

These national mortgage programs may be used by first-time home buyers to make home-owning more affordable in any of the 50 states.

Alabama first-time home buyer programs

AHFA offers first-time and repeat home buyers affordable home loans for buying a new or existing home, but not for refinancing. Assistance programs reduce the need to save for down payments and closing costs. And Mortgage Credit Certificates can reduce your federal income tax bill.

AHFA highlights and eligibility requirements

HIGHLIGHTS

  • Up to 3.5% down payment assistance.

  • Grants to help low-income home buyers pay closing costs.

  • Federal tax credits available.

ELIGIBILITY

  • 640 minimum credit score.

  • Income and purchase-price limits apply.

  • Must complete a homeownership education course.

Your next step

If one of these state programs seems right for you, get started by reaching out to a participating lender. They can answer questions, identify target areas, calculate the assistance you can get and help you apply. After that, it’s time to get ready for your homebuying education course, a requirement for both Step Up and the Affordable Income Subsidy Grant, before the mortgage closes.