The DAP, which helps low-income residents of Huntsville with the initial costs of purchasing a home, is available through the City of Huntsville Community Development Department and the AHFA. Assistance with down payments and closing costs is given in the form of a $5,000 interest-deferred loan which is gradually forgiven over the first 5 years of successful home ownership. Qualifying families must meet certain requirements, including not having owned a home within the last three years, saving $500 of their own for home maintenance, and completing a homebuyer education course. Funds are limited. Income and purchase price limits apply.

First-time home buyers can benefit from the First Step program's 30-year mortgages and lower-than-market interest rates. Low- to moderate-income home buyers can also qualify. After completing a homebuyer education course, qualified buyers can also receive help with their down payment. Funded by tax-exempt First Step Mortgage Revenue Bonds, First Step and AHFA's participating lenders help these families overcome some of the financial obstacles to owning a home.

We are approved by the U. S. Department of Housing and Urban Development (HUD) to provide counseling, education and advice in housing issues to new and existing homeowners.

This program was put together by AHFA with Habitat for Humanity, which is widely known for its work in helping to build affordable housing for low-income families. The AHFA, local Habitat affiliates, and local lenders work together to make sure that cash flow is always available to make more homeownership dreams a reality.

The Mortgage Credit Certificate (MCC) program is a tax credit that reduces the federal taxes on your paycheck so you have more money to pay your mortgage every month. Over the course of a year, the credit is figured to equal 20 percent of your annual mortgage interest paid. You will still get a tax deduction for the other 80 percent of the mortgage interest. The price of your home and your family's income are subject to federal limits, but if you qualify, more money in your paycheck means more ability to afford your home.

The Rural Alabama Mortgage Program (RAMP) combines the down payment assistance and low interest rates offered by the AHFA with the 502 Direct Loan Program administered by the USDA. In addition, up to $2,000 is available to qualifying rural homebuyers to offset the initial costs of purchasing a home. After completing a homeownership education course, these rural families will be able to secure the best mortgage terms available. Income and purchase price limits apply.

If you can afford a mortgage but need assistance with the down payment, then Step Up may be for you. AHFA offers this program for homebuyers who earn less than $97,300 per year, with no restrictions on location or household size. There is also no restriction on the purchase price of the house. After you complete a homebuyer education class, your new home will be secured by a 30-year fixed-rate first mortgage with a 10-year second mortgage covering the down payment on the home. The interest rate will be a little higher than on a traditional loan, but both mortgages may be paid monthly with one check made out to the AFHA.