AHFA Mortgage Rates Save Homebuyers Thousands
MONTGOMERY, Ala. – With the Alabama Housing Finance Authority’s latest below-market mortgage rates, Alabama households with modest incomes can save an average of $56,000 over the life of their 30-year loans.
Based on AHFA’s median-priced loan of $202,000, the First Step Mortgage Revenue Bond program can save borrowers $156 per month or $1,875 per year compared to current market interest rates on a government-backed mortgage (FHA, VA, or USDA). Homebuyers who earn less than the median income for their area can apply for two special 30-year fixed mortgage interest rates: either 5.25% on FHA, VA, or USDA loans, or 5.75% on Freddie Mac HFA Advantage conventional loans. Available to Alabama homebuyers only through AHFA, applications are accepted on a first-come, first-served basis by a statewide network of participating lenders. Both rates include up to $10,000 in a down payment assistance loan.
“AHFA’s First Step package results in real savings for Alabama’s first-time and lower-income borrowers,” said Executive Director Robert Strickland. “Every day we’re seeing schoolteachers, counselors, law enforcement personnel, ministers and more become homeowners through this program. We want every qualified Alabama household to benefit from the opportunity to put down roots.”
Income and sales price limits for participation are set by the U.S. Department of Housing and Urban Development and based on each area’s median income. Limits vary based on family size and the home’s location. In some areas of the state, qualifying households can earn up to $159,040 annually and purchase homes with a sales price up to $624,481 in “target” areas and $510,939 in “non-target” areas (see list below). These areas are also set by the federal government to encourage economic development. Program details are available at ahfa.com/homebuyers/programs-available/first-step-mortgage-revenue-bonds.
AHFA, established in 1980 by an act of the Alabama Legislature, is a self-supporting public corporation dedicated to meeting the housing needs of the state’s low- to moderate-income citizens. Its programs have provided opportunities for more than 200,000 families to live in homes they can afford.
