July 08, 2015
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http://www.ahfa.com/

The Alabama Housing Finance Authority is announcing the end of the limited-time Alabama Home Buyer Initiative (AHBI). AHFA allocated allotted funds to more than 1,600 homebuyers, generating approximately $243 million in home sales since the initiative’s introduction in March 2014.

AHBI was a mortgage enhancement fund enacted by the Alabama Legislature, held in the Alabama State Treasury and administered through AHFA that provided private mortgage insurance (PMI) at no cost to borrowers. AHBI paid the up-front single PMI premium, saving the average homebuyer approximately $150 each month.

“We are pleased the initiative spurred impressive housing activity and home sales, while also generating significant sales taxes, ad valorem taxes and economic stimulus across the state,” said AHFA Executive Director Robert Strickland. “We thank the Home Builders Association of Alabama and the Alabama Association of Realtors, which were instrumental in helping create this economic stimulus program, as well as all of our participating lenders for making the initiative a great success for Alabama homebuyers.”

AHBI was designed to complement AHFA’s Step Up mortgage program by adding no PMI costs for the homebuyer to Step Up’s already 30-year, fixed-rate financing and down payment assistance. Although AHBI has come to an end, borrowers can still utilize and benefit from the Step Up program.

AHFA, established in 1980 by an act of the Alabama Legislature, is a self-supporting public corporation dedicated to meeting the needs of the state’s low- to moderate-income citizens. It has helped more than 105,000 households—serving as Alabama’s affordable housing resource.