In an uncertain economy, one thing is sure: A First Step Mortgage Revenue Bond loan from AHFA helps homebuyers save thousands.
On a median-priced home with a 30-year FHA loan, that’s an average savings* of more than $56,000 – about $1875 per year for your borrowers.
If you’re not using the First Step program to reach first-time homebuyers, here are three reasons to add it to your toolbox:
Expand the pool. We all know that homeownership stabilizes and strengthens our communities. First Step’s lower-than-market interest rates help you reach first-time home buyers and those of modest means who might otherwise be stuck in the cycle of monthly rent. More than 96 percent of our borrowers are first-time home buyers.
Stack the savings. First Step loans also may be combined with up to $10,000 for a down payment assistance loan from AHFA. In addition, eligible borrowers may qualify for an Affordable Income Subsidy Grant toward closing costs. These add-ons further increase your borrowers’ purchasing power.
Build customer loyalty. Most first-time home buyers eventually become repeat homebuyers. What’s more, those homeowners you’ve given a solid financial footing may need small business, home improvement, and auto loans down the road.
First Step loans are available with 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development, and privately insured mortgages. Participants must meet federally established income and sales price limits based on geographic location.
“AHFA’s First Step loans result in real savings for Alabama’s first-time and lower-income borrowers,” said Executive Director Robert Strickland. “Every day we’re seeing school teachers, counselors, law enforcement personnel, ministers and more become homeowners through this program. We want Alabama bankers to be part of that.”
Three ways to make First Step your next step:
Mortgage applications are accepted on a first-come, first-served basis by a statewide network of 87 participating lenders. See the full list or find out how to join them at www.ahfa.com/homebuyers/how-do-i-apply.
AHFA offers free, on-site, in-person training for mortgage and real estate professionals. We’ll present customized, detailed information on our programs and eligibility requirements, and give you the tools you need to place more first-time and lower-income buyers into homes of their own. Contact Alana Beaugez at abeaugez@ahfa.com for scheduling and details.
For other program inquiries, email AHFA at lenderhelp@ahfa.com, call 800-325-2432, or visit https://www.ahfa.com/lenders/ahfa-loan-products. We’ll be pleased to provide one-on-one answers to your questions.
* Savings calculated on AHFA’s average FHA loan amount of $201,879.
