MONTGOMERY—For a limited time, homebuyers can benefit from a new mortgage enhancement—the Alabama Home Buyer Initiative—that will provide private mortgage insurance (PMI) at no cost to the borrower. This special offering is available through the Alabama Housing Finance Authority.
ALABAMA HOME BUYER INITIATIVE Available through the Alabama Housing Finance Authority
For a limited time, homebuyers can benefit from a new mortgage option—the Alabama Home Buyer Initiative— that will provide private mortgage insurance (PMI) at no cost to the borrower.
The initiative will pay the up-front single PMI premium—saving the average homebuyer approximately $100 each month. Funds are offered on a first-come, first-served basis, until the fund is exhausted.
Mortgage Enhancement, Affordable Rates & Down Payment Assistance
• Private mortgage insurance (PMI), underwritten by Genworth Mortgage Insurance and provided at the expense of the initiative, will insure the first mortgage.
• The Alabama Home Buyer Initiative enhancement is designed to complement AHFA’s Step Up financing product. • Step Up provides 30-year, fixed-rate financing and down payment assistance for borrowers earning less than $97,300.
• Step Up is able to offer 97% LTV financing through Fannie Mae’s HFA Preferred product for conventional loans.
• AHFA provides down payment assistance up to 3%. The assistance will be a second mortgage amortizing over a 10-year period at the same interest rate as the first mortgage.
• Homebuyers must complete a homeownership education course to qualify.
• Proposed construction, new and existing homes will be eligible to participate.
• For proposed construction cases, $100 million has been reserved for the first six-month period of the initiative. Each loan will receive a four-month commitment of funds during the home’s construction period.
How to Apply
• The Alabama Home Buyer Initiative enhancement and AHFA’s Step Up product are available through a statewide network of participating lenders.
• Visit AHFA.com for a list of participating lenders in your area.
• Initiative funds will only be offered for a limited time, so act quickly to begin the mortgage process with your lender.
For More Information
• Visit AHFA.com or call 800.325.2432.