April 2024 Lender News from AHFA

Bonds are Back ... at 5.5% and 6%!

Mortgage Revenue Bond Loan Option Opens Today

Today's the day! Alabama households with modest incomes will soon benefit from new below-market mortgage interest rates offered by AHFA's First Step Mortgage Revenue Bond program.

Beginning April 15, homebuyers who earn less than the median income for their area can apply for two special 30-year fixed mortgage interest rates: either 5.5% on FHA, VA, or USDA loans, or 6% on Freddie Mac HFA Advantage conventional loans. Available to Alabama homebuyers only through AHFA, applications are accepted on a first-come, first-served basis by a statewide network of participating lenders. Both rates include up to $10,000 in down payment assistance.

The First Step program was hugely popular several years ago, and market conditions are again right for reopening the program, said AHFA Executive Director Robert Strickland.

“The 50,000 Alabama homebuyers who took advantage of this program from 1980 to 2010 know what a difference it makes,” said Strickland. “These lower-than-market interest rates result in real savings over the course of a loan."

Income and sales price limits for participation in the program are set by the U.S. Department of Housing and Urban Development and based on each area’s median income. Limits vary based on family size and the home’s location. In some areas of the state, qualifying households can earn up to $119,400 annually and purchase homes with a sales price up to $588,104 in “target” areas and $481,176 in “non-target” areas. These areas are also set by the federal government to encourage economic development.

"We're pleased to present our lenders and Realtors with this opportunity to reach more homebuyers," said Strickland. "These low interest rates and down payment assistance will increase borrowers' purchasing power.”

Click on the one-page program summary at left for a PDF that you can print for quick reference.

Click here to see more program details, income and sales price limits, and a map for locating target and non-target areas. For more information, email us at lenderhelp@ahfa.com.

Outstanding Lender Results Revealed for FY24 2nd Quarter

Individual Leading Lenders

The leading lenders who closed the most loans using AHFA programs for the second quarter of 2024 are listed below in alphabetical order.

Top Participating Lender Company

Our top participating lender for the second quarter is Trustmark Mortgage. We asked Trustmark lenders how the new First Step program would benefit their customers. Watch this space and our social media for their answers in the weeks ahead.

Congratulations to all of our winners! We appreciate them for using AHFA's homeownership financing options to help homebuyers.

First 2Q Leading Lender Praises First Step Program

Matthew Stringfellow earned AHFA Leading Lender recognition and also helped Trustmark Mortgage become our top participating lender company for 2Q24. We reached out to members of the Trustmark team for their thoughts on the impact of the new First Step MRB program.

Thank you, Matthew, for your kind comments (shown at right). We appreciate you!

Realtors and Lenders, Let's Connect! We Want to Meet 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.