AHFA First Step (Mortgage Revenue Bonds)
AHFA First Step (Mortgage Revenue Bonds) is a down payment assistance program from Alabama Housing Finance Authority (AHFA). It serves buyers in Statewide, Alabama and offers up to $10,000 or 4% of the price (lesser). I'm David Stallings with NorthStar Mortgage Advisors, and my team (The Stallings Team) helps buyers apply for AHFA First Step as an approved participating lender.
Last updated October 15, 2026. Program details checked against official sources on October 15, 2026.
AHFA First Step quick facts
| Program | AHFA First Step (Mortgage Revenue Bonds) |
|---|---|
| Administrator | Alabama Housing Finance Authority (AHFA) |
| Area served | Statewide, Alabama |
| Assistance | DPA up to $10,000 or 4% of sales price (lesser), secured by a 10-year second mortgage combined with the 30-year fixed First Step first mortgage. Freddie Mac HFA Advantage users may also qualify for the Affordable Income Subsidy Grant (AISG). |
| First mortgage types | FHA, VA, USDA or Freddie Mac HFA Advantage conventional |
| Status | Open (checked October 15, 2026) |
| NorthStar lender status | Listed on the official lender list (Canopy Mortgage, LLC) |
| Official page | https://www.ahfa.com/programs/homeownership/available-programs/first-step-mortgage-revenue-bonds |
Who is eligible for AHFA First Step?
These are the main requirements published by the administrator. Limits change, often every year, so we confirm the current numbers on your file.
- Target areas: first-time or repeat buyers; non-target areas: no home owned in the previous 3 years
- Federally established income and sales-price limits by area (AHFA tables)
- Minimum credit score 640; DTI 45% or lower
- Alabama primary residence occupied within 60 days; no business or rental use
- Purchase only; apply through a participating lender
How to apply for AHFA First Step
- Talk with me. Call 678-561-2504 or start an application, and tell me the city or county you want to buy in, your household size, and your household income.
- Get preapproved for an eligible first mortgage. Program requirement: FHA, VA, USDA or Freddie Mac HFA Advantage conventional. I check your numbers against the program's current official income and price limits.
- Complete any required homebuyer education and gather your income, asset, and household documents.
- Find a home that fits the program's area and price limits and go under contract.
- I reserve or submit the AHFA First Step assistance with your loan file.
- The administrator approves the assistance, the loan is underwritten, and the assistance is applied at closing.
Frequently asked questions
How much down payment help can I get from AHFA First Step?
Down payment assistance of up to $10,000 or 4% of the sales price, whichever is lower, secured by a 10-year second mortgage paired with the 30-year fixed First Step first mortgage. Buyers using Freddie Mac HFA Advantage may also qualify for AHFA's Affordable Income Subsidy Grant toward closing costs.
Do I have to be a first-time homebuyer to use AHFA First Step?
Only outside target areas. In AHFA target areas, first-time and repeat buyers can both qualify; elsewhere you can't have owned a home in the previous three years.
Do I have to pay back AHFA First Step?
Yes. The down payment funds are a 10-year second mortgage repaid monthly with your first mortgage.
What kind of mortgage can I use with AHFA First Step?
FHA, VA, USDA or Freddie Mac HFA Advantage conventional.
Where can I use AHFA First Step?
Statewide, Alabama. Confirm the exact property address with the administrator or with us before you go under contract.
Is NorthStar Mortgage Advisors an approved lender for AHFA First Step?
Yes. Canopy Mortgage, LLC (NorthStar Mortgage Advisors' parent company, NMLS #1359687) appears on the program's official participating-lender list, checked October 15, 2026. That means I can take your AHFA First Step application from preapproval through closing.
Related down payment assistance in Alabama
- AHFA Step Up (4% of the price, up to $10,000)
- Birmingham Ready to Own (up to $10,000)
- City of Mobile DPA ( amount not published)
- Mobile County DPA (up to $25,000)
- Huntsville HOAP (up to $24,999 or 10% of the price)
- All Alabama down payment assistance programs
- Down payment assistance by state
Sources
Last updated October 15, 2026. Program terms are set by Alabama Housing Finance Authority (AHFA) and can change without notice.
NorthStar Mortgage Advisors is a division of Canopy Mortgage, LLC. NMLS #1359687. 6588 Church Street, Douglasville, GA 30134. David Stallings, NMLS #157508. Equal Housing Opportunity. Down payment assistance programs are run by the government agencies and authorities named on this page, which set and can change their terms, limits, and funding at any time. Program details on this page were checked against official sources on the date shown and are not a commitment to lend. All loans are subject to credit, income, property, and program approval. Verify licensing at nmlsconsumeraccess.org.