More homebuyers now qualify for assistance programs from the Alabama Housing Finance Authority (AHFA), thanks to increased income and sales price limits effective May 22.

Set by the U.S. Department of Housing and Urban Development, the new income limits have increased by up to 33% over 2023 figures due to rising median incomes and economic gains. Qualifying households can now earn up to $159,040 annually, depending on the home's location and family size.

The changes benefit participants in the First Step Mortgage Revenue Bond (MRB) and Mortgage Credit Certificate (MCC) programs, available exclusively to Alabama homebuyers through AHFA.

The First Step MRB program offers below-market, 30-year fixed mortgage interest rates and up to $10,000 in down payment assistance to first-time or repeat homebuyers. The MCC provides homebuyers with an annual credit to reduce federal income tax, equal to a percentage of mortgage interest paid each year for the life of the loan.

Designed to make homeownership more affordable, both programs are available on a first-come, first-served basis through a statewide network of participating lenders, said AHFA Executive Director Robert Strickland.

"We are pleased to open these popular programs to even more Alabama homebuyers through higher income and sales price limits," Strickland said. "These homeownership programs result in real savings over the life of a mortgage loan. Despite constantly changing market conditions, homeownership remains one of the best paths to economic stability and strong communities."

Maximum sales prices for home purchases have also risen, to $624,481 in "target" areas and $510,939 in "non-target" areas. These areas are designated by the federal government to encourage economic development. AHFA will verify each property's location and apply the appropriate limit on an individual basis. Both programs are available for 30-year, fixed-rate, amortizing conventional, FHA, VA, Rural Development, or privately insured mortgages.

Several parts of the state, both rural and urban, have their own income limits based on each area's median income. For a complete listing, visit www.ahfa.com/homebuyers/programs-available/mccs/income-limits.