Alabama · DPA program

AHFA Step Up DPA

$10,000

Up to 4% of purchase price or $10,000 as down payment and closing cost assistance.

AHFA Step Up provides $10,000 in DPA as a 10-year second mortgage at 3% interest. Alabama's low home prices mean $10,000 covers a significant portion of most purchases. Monthly payments on the second mortgage are modest — roughly $97/month.

Amount$10,000

TypeDPA program

Available inAlabama

First-time buyer requiredYes

Minimum credit score640

Multi-unit eligibleYes — 1-4 units

House-hack eligible

This program can be used on 1-4 unit properties. Live in one unit, rent the others.

Programs that pair with this

FHA Loan Saves ~$33,000 on a $200K home vs 20% down

Federal · Subsidized loan

VA Loan $0 down + no monthly mortgage insurance

Federal · Federal benefit

NACA Program $0 down + $0 closing + $0 PMI + below-market rate

National · Nonprofit program

AHFA Affordable Mortgage Below-market rate + DPA eligible

Alabama · Subsidized loan

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