March 2024 Lender News from AHFA

Bonds are Back!

Mortgage Revenue Bond Loan Option Returning Soon

AHFA is on a mission to bring back this lender and homebuyer favorite. Now called the First Step program, the below-market interest rates financed through Mortgage Revenue Bond loans turned 50,000 Alabama households into homeowners from 1980 to 2010. And the sequel is shaping up to be even better.

Watch this space and our social media for all the previews and details on this coming attraction.

AHFA Awarded as Top Producer by Freddie Mac

AHFA has been recognized as one of Freddie Mac’s top producers for 2023. AHFA placed third in the region among small market HFAs with state populations under 6 million, closing 207 mortgage loans for more than $41 million for homebuyers of modest means.

“AHFA plays a vital role in the affordable ecosystem, and we thank them for their partnership and making 2023 a record year for HFA Advantage,” said James Hall, affordable lending manager for Freddie Mac.

Freddie Mac’s HFA Advantage is a conventional mortgage to advance homeownership opportunities for very low-, low- and moderate-income borrowers. AHFA administers the program through a statewide network of more than 50 mortgage lenders.

“Our popular ‘Step Up’ program offers the Freddie Mac loan option because it opens doors for those we serve – Alabama’s low- to moderate-income homebuyers who need a little extra help entering homeownership,” said AHFA Single-Family Administrator Carrie Hamaker. “Another key benefit is that the loans can be combined with an Affordable Income Subsidy Grant, further reducing homebuyers’ entry costs.”

For more information, visit https://www.ahfa.com/homebuyers/programs-available.

Spotlighting Realtor of the Year Plychette Montgomery

Plychette Montgomery of Elite Signature Properties in Tuscaloosa was recently named one of AHFA's realtors of the year for helping the most families become homeowners using AHFA programs in FY2023.

Click the link at left to view a recap of our visit with Plychette and her reasons for recommending AHFA programs.

Last year, lenders and realtors like Plychette helped 870 families from 52 counties become homeowners with AHFA’s Step Up program. Step Up provides competitive 30-year fixed mortgage interest rates and up to $10,000 in down payment assistance for households who earn less than $159,200 annually.

“By offering AHFA’s Step Up down payment assistance and closing cost grants, Plychette went the extra mile last year,” said AHFA Single-Family Administrator Carrie Hamaker. “She saved her customers money. She stretched her home buyers’ purchasing power. She helped her clients make a decent down payment without breaking the bank.”

Since the year 2000, AHFA’s Step Up program has helped more than 21,000 Alabama homebuyers who can afford a monthly mortgage but need assistance with the down payment and closing costs. These funds can be combined with an Affordable Income Subsidy Grant and a Mortgage Credit Certificate to further boost their purchasing power. For more information, visit https://www.ahfa.com/homebuyers/programs-available.

Fairway Lenders 'Step Up' for Homebuyers

Fairway Independent Mortgage Corporation was our Top Participating Lending Company for 1Q24, closing the most home loans last quarter using our homeownership financing options. Their lenders gave us great responses on the difference AHFA's new, higher Step Up income limit makes for their customers.

"The new, higher Step Up income limit is incredible! Quite obviously, it opens the doors to a larger number of people. When you combine that fact with my FAVORITE part of the program — it allows the homeowner to have more control over how much of their savings they want to spend — it’s a phenomenal option that should always be considered!"

Kelli Moore, Montgomery

“With a higher income limit, more customers will find it easier to afford homeownership. The increased limit means that individuals or families with higher incomes can still access AHFA programs, making homeownership more attainable for a broader range of customers.”

Pam Boyd, Dothan

Lenders and Realtors, Let's Connect! We'll Come to You!

Are you a mortgage or real estate professional who wants to know more about AHFA programs? AHFA offers on-site training on our programs that covers borrower and property eligibility, processing, documentation, income calculations and more. Our “Doing Business with AHFA” class qualifies for 3 CEUs, certified by the Alabama Real Estate Commission. To schedule an informational visit or training session, simply email Alana Beaugez.

Current Interest Rates

Below are the current Step Up interest rates:

FHA / VA: 6.875%
CONV-Freddie Mac: 7.125%

Rates are subject to change without notification.

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Alabama Housing Finance Authority | www.AHFA.com