Alabama Housing Finance Authority (AHFA) Bond “Step Up” Loan Program
30 year fixed rate mortgage loan with a market interest rate 6.5% (as 8/25/2008).
Qualify with FHA Guidelines.
Newly enhanced down payment assistance is available with Step Up loans. This will allow up to 100% Loan to Value (LTV) on FHA loans.
Qualifying Requirements
Total household income and the sales price of the home cannot exceed income and sale price limits.
Maximum Loan Amount: $285,000.000
Maximum Household Income (Baldwin & Mobile County ): $97,300
There is NO first time home buyer requirement.
The homebuyers must occupy the property and it cannot be used for business, rental or commercial purposes.
The loans originated with Step Up must meet lender, FHA, and Fannie Mae Standards for credit worthiness.
Now that you appear to qualify – What do you need?
The past 2 years, signed and complete federal income tax returns and W-2’s of anyone occupying the residence, over 18 years of age.
An executed Sales Contract.
An executed 1003, Call Rob your Mortgage Banker to make application and get pre-approved!!
Down Payment Assistance Options (Step Up)
Each household may apply for up to 3% of the property sales price, to cover their down payment.
The Down Payment assistance is a second mortgage that is a fixed rate mortgage with the same interest rate as the first mtg, financed over 20yrs.
Not subject to recapture tax!!
If you haven’t heard yet, Fannie Mae and Freddie Mac have discontinued all of their 100% financing programs. So now what do we do with those client who need 100% financing?
We “Step Up” with AHFA!!!
Clients can still get a FHA market rate and finance their down payment up to 100% LTV in one simple program. Thank goodness!!
Take a moment to look at the example of how the “Step Up” program is structured.
Example:
Purchase Price____________________________________________________________________________$200,000
FHA (The maximum FHA will loan is 97% of the purchase price), so 1st mtg is $194,000
Here is where AHFA “Step’s” in to help.
AHFA loans to the borrower 3% of purchase price for down payment assistance.
The 3% is fixed on a second mortgage at the same interest rate as the 1st mtg
AHFA________3% of purchase price_________________________________3% for down payment assit___$6,000
2nd mtg fixed for 20yrs
Totals to $6,000
Total amount financed_______________________________________________________________ $200,000 (100%LTV)
As you can see from this example, this can be very beneficial to clients who do not have a down payment or for those clients who want to keep their investments invested in the market. This is a great program and just one of the thousands of options we have to choose from at HMC,Inc. Feel free to give me a call on my cell phone if I can ever be assistance.
Rob Smith
AHFA Loans - Alabama Housing Authority
(251)422-5710 cell
Gulfshoreslife
Good info on AHFA Rob! Get additional mortgage information from Rob here - http://gulfshoreslife.wordpress.com/rob-smith-mortgage-banker-home-mortgages-company-fairhope-al/