New Income and Sales Price Limits Effective June 2 Open More Doors for AHFA Homebuyer Assistance

MONTGOMERY, Ala. – Increased income and sales price limits effective June 2 may help more homebuyers qualify for Alabama Housing Finance Authority (AHFA) assistance programs.

Set by the U.S. Department of Housing and Urban Development, the new income limits increased over 2024 figures by as much as 4 percent due to changing median incomes and economic gains. Qualifying households now can earn up to $161,700 annually, depending on the home’s location and family size.

The new limits benefit participants in the First Step Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs, available to Alabama homebuyers only through AHFA.

The First Step MRB program offers below market, 30-year fixed mortgage interest rates to first-time or repeat homebuyers, as well as down payment assistance loans and closing cost grants. The MCC gives homebuyers an annual credit to reduce federal income tax. The credit is equal to a percentage of mortgage interest paid for every year of the life of the loan.

These popular programs have cleared a path to homeownership for thousands of Alabamians, said AHFA Executive Director Robert Strickland.

“As we strive continually to reduce obstacles for homebuyers, our new income and sales price limits can expand our assistance to many more households,” said Strickland. “By adapting to economic changes, we are ensuring that our programs reach the greatest possible number of potential homeowners in our state.”

The maximum sales price for the home purchase has risen as well, to $665,173 in “target” areas and $544,233 in “non-target” areas. These areas are set by the federal government to encourage economic development. AHFA will verify each property’s location and apply the appropriate limit on an individual basis. The status of nearly all residential addresses in Alabama can be checked by visiting www.ahfa.com/homebuyers/programs-available/first-step-mortgage-revenue-bonds.

Several parts of the state, both rural and urban, have their own income limits based on each area’s median income. Visit www.ahfa.com/homebuyers/programs-available/mccs/income-limits for a complete listing.

Either program can be used on 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development, or privately insured mortgages. Each is available on a first-come, first-served basis by a statewide network of participating lenders.

“These homeownership programs result in real savings over the life of a mortgage loan,” said Strickland. “Even in constantly changing market conditions, homeownership remains one of the clearest paths to economic stability and strong communities.”

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.