AHFA Step Up DPA
The AHFA will lend you up to 4% of the purchase price, with a $10,000 maximum, for a down payment on a new or existing home in Alabama. This assistance comes in the form of a 10-year second mortgage, provided that you meet the following conditions:
Your household income can’t exceed $159,200
You need a credit score of 640 or higher (680 or higher if you make more than 80% of your area’s median income)
Debt-to-income ratio of 45% or lower.
Your new first mortgage must be a HFA Advantage conventional loan, FHA loan, or VA loan from a participating lender.
You must complete a homeownership education course