Who qualifies for Step Up?
Program participants must complete a homebuyer education course to qualify.
| Detail | Program terms |
|---|---|
| Assistance | 4% of the sales price up to $10,000 |
| Type | Repayable second mortgage |
| Minimum credit | 640 |
| First-time buyer | See official page |
| Income limits | Participants who earn $172,800 or less are eligible, regardless of household size or location. |
How does Step Up work with an FHA loan?
Alabama's 2026 FHA one-unit limits start at $541,287, which supports a price of about $560,000 with 3.5% down. On a $250,000 home, the minimum FHA down payment is $8,750 — assistance of up to $10,000 could cover it and part of closing costs, subject to program rules.
Where do I confirm current terms?
On the official page: https://www.ahfa.com/programs/homeownership/available-programs/step-up. Programs can pause when funds run out, so confirm availability with a participating lender.
“Amount of assistance: 4% of the sales price up to $10,000” — Alabama Housing Finance Authority
Frequently asked questions
Sources
- Alabama Housing Finance Authority — Step Up (official page, verified October 23, 2026)
- HUD — 2026 FHA limits
Data last updated October 23, 2026.
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Get My MatchesFigures on this page are estimates for educational purposes only and are not a loan offer or commitment to lend. Rates, loan limits, fees and assistance programs change frequently and vary by lender, location and borrower profile. Confirm current terms with a licensed loan officer.