AHFA Step Up
AHFA Step Up is a down payment assistance program from Alabama Housing Finance Authority (AHFA). It serves buyers in Statewide, Alabama and offers 4% of the price, up to $10,000. I'm David Stallings with NorthStar Mortgage Advisors, and my team (The Stallings Team) helps buyers apply for AHFA Step Up as an approved participating lender.
Last updated October 15, 2026. Program details checked against official sources on October 15, 2026.
AHFA Step Up quick facts
| Program | AHFA Step Up |
|---|---|
| Administrator | Alabama Housing Finance Authority (AHFA) |
| Area served | Statewide, Alabama |
| Assistance | 4% of sales price up to $10,000, secured by a 10-year second mortgage combined with a 30-year fixed first mortgage; serviced by ServiSolutions (one monthly payment). |
| First mortgage types | FHA, VA, USDA or 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/step-up |
Who is eligible for AHFA Step Up?
These are the main requirements published by the administrator. Limits change, often every year, so we confirm the current numbers on your file.
- Qualifying income of $172,800 or less, regardless of household size or location
- Minimum credit score 640; DTI 45% or lower
- New or existing home in Alabama, occupied as primary residence within 60 days
- Homeownership education course required
- Purchase only (no refinances); apply through a participating lender
How to apply for AHFA Step Up
- 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 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 Step Up 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 Step Up?
4% of the sales price, up to $10,000, secured by a 10-year second mortgage paired with your 30-year fixed first mortgage. Because ServiSolutions (a division of AHFA) services both loans, you make one payment each month.
Do I have to be a first-time homebuyer to use AHFA Step Up?
No. AHFA doesn't list a first-time buyer requirement for Step Up; it's designed for moderate-income buyers who can afford a payment but need down payment help.
Do I have to pay back AHFA Step Up?
Yes. Step Up's down payment funds are a 10-year second mortgage repaid in monthly installments alongside your first mortgage.
What kind of mortgage can I use with AHFA Step Up?
FHA, VA, USDA or HFA Advantage conventional.
Where can I use AHFA Step Up?
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 Step Up?
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 Step Up application from preapproval through closing.
Step Up or First Step: which is better for me?
Both offer up to $10,000 or 4%. First Step uses federally set income and price limits by area (and a first-time rule outside target areas); Step Up uses one $172,800 income cap statewide. We'll run both and show you the difference on a Loan Estimate.
Related down payment assistance in Alabama
- AHFA First Step (up to $10,000 or 4% of the price (lesser))
- 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.