Alabama down payment assistance, deep-checked against current state program sources.
A current inventory of state-run and state-administered assistance in Alabama, plus national DPA options. Funding and rate sheets can still change after this review date.
Reviewed September 11, 2026 • Joshua Dobson, NMLS #190260
Quick comparison
| Program | Potential assistance | Published min. FICO | Repayment/Forgiveness | Biggest catch |
|---|---|---|---|---|
| AHFA Step Up | 4% of sales price, up to $10,000 | 640 | 10-year second mortgage | Income cap, 45% DTI cap and education apply. |
| AHFA First Step Mortgage Revenue Bonds + DPA | Up to 4% of sales price, max $10,000 | 640 | 10-year second mortgage paired with below-market first mortgage | Federal income and sales-price limits vary by target-area status. |
| AHFA Affordable Income Subsidy Grant | Current grant amount depends on HFA Advantage borrower income | program/product specific | Grant for eligible HFA Advantage borrowers | Only available with eligible HFA Advantage executions; amount depends on current rules. |
AHFA Step Up
AHFA Step Up is a current state-administered homebuyer assistance option. Mortgage Navigator uses the administering agency as the controlling source and avoids filling changing details with stale third-party numbers.
Published minimum FICO: 640
AHFA First Step Mortgage Revenue Bonds + DPA
AHFA First Step Mortgage Revenue Bonds + DPA is a current state-administered homebuyer assistance option. Mortgage Navigator uses the administering agency as the controlling source and avoids filling changing details with stale third-party numbers.
Published minimum FICO: 640
AHFA Affordable Income Subsidy Grant
AHFA Affordable Income Subsidy Grant is a current state-administered homebuyer assistance option. Mortgage Navigator uses the administering agency as the controlling source and avoids filling changing details with stale third-party numbers.
Published minimum FICO: program/product specific
National programs Alabama buyers should also check
National Homebuyers Fund
NHF multi-state assistance may be available through participating lenders. Current lender/product terms control credit, pricing, assistance and repayment or forgiveness.
Published minimum FICO: product/lender specific
Chenoa Fund
Chenoa Fund provides FHA down-payment assistance through approved lender partners. Current matrices control credit, pricing and second-mortgage terms.
Published minimum FICO: product/lender specific
Alabama's biggest DPA lesson
Alabama has two AHFA first-mortgage paths that can carry AHFA DPA—Step Up and First Step—plus the Affordable Income Subsidy Grant for eligible HFA Advantage borrowers. These are related benefits, not automatically stackable duplicate DPAs.
Let Josh compare the available programs.
Send the city/ZIP, purchase price, credit range, household income and first-time-buyer status.