Alabama Homebuyers Set to Save $750 Annually
After FHA Reduces Mortgage Insurance Premiums
Savings Based on January 2023 Median Home Price of $254,700
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Alabama homebuyers can now save about $750 in annual insurance costs, thanks to the Federal Housing Administration’s recent announcement.
FHA revealed that it will reduce the mortgage insurance premiums it charges home buyers for its mortgage insurance by 30 basis points. On a median-priced home in Alabama of $254,700, this results in an annual savings of $750, and possibly more for those with higher loan amounts.
“We did a great deal of thought and analysis to come up with a number that is meaningful for borrowers and still prudent for the program,” said Julia Gordon, HUD Assistant Secretary for Housing and FHA Commissioner. “This gives them a little bit of room to deal with inflation.”
AHFA's single-family administrator, Carrie Hamaker, also hopes the extra cash will help nudge buyers on the fence about making a home purchase.
“An extra few hundred dollars can make a difference to financially strapped homebuyers whose monthly budgets don’t have much ‘wiggle room,’” said Hamaker. “Especially when combined with AHFA’s Step Up down payment assistance or the federal tax credit of a Mortgage Credit Certificate, the savings really start to add up.”
Nearly 25,000 Alabama households have used AHFA’s Step Up and MCC programs to make their home purchases more affordable. Both programs can be used with FHA loans. Visit www.ahfa.com/homebuyers/programs-available for more information.
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'I Love It Here': An AHFA Resident Testimonial Featuring Deborah Callahan of Nathan's Ridge in Wetumpka |
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Deborah Callahan downsized from a house to an apartment at Nathan's Ridge for her retirement years. She enjoys the safety, security and community of the Wetumpka development financed by AHFA-administered HOME funds and Housing Credits. For more information on these programs, visit Multifamily Programs | Alabama Housing Finance Authority (ahfa.com). |
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Step Up DPA Gives Buyers Freedom to Choose |
New furniture, upgrades, and renovations? Or utility deposits, packing supplies, and moving truck rental? The costs quickly add up for any move. But with up to $10,000 in down payment assistance, AHFA’s Step Up program gives home buyers flexibility in spending for all the expenses – expected or unexpected – that they will incur.
Step Up is a homeownership program designed specifically for moderate-income home buyers who can afford a mortgage but need help with the down payment. Along with the up-front funds, Step Up provides a competitive 30-year, fixed interest rate for homebuyers who earn less than $130,600 and meet standards for creditworthiness. The down payment funds are secured by a 10-year second mortgage. Since the loans are serviced by ServiSolutions, a division of AHFA, homeowners have only one check to write each month. Program participants must also complete a homebuyer education course to qualify, which is typically an online course offered by their lender.
For more information about the Step Up program, including additional savings options, eligibility requirements, and a current list of participating lenders, visit www.AHFA.com.
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Let's Connect! Outreach & Education in February
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Are you plugged in to what AHFA is doing? Simply email abeaugez@ahfa.com to schedule your next meet-up! |
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February 6: Lender visit with Assurance Financial, Homewood
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February 6: Lender visit with HomeTown Lenders, Birmingham
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February 6: Lender visit with loanDepot, Hoover
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February 7: Lender visit with Prosperity Home Mortgage, Vestavia Hills
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February 7: Lender visit with AmeriCapital Funding, Birmingham
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February 7: Realtor training with RE/MAX Market Place in Trussville and Tracy Causey of DAS Acquisition
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February 9: Lender visit with Cahaba Mortgage, powered by The Mortgage Firm, Hoover
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February 9: Realtor training with Keller Williams in Hoover, featuring James Hall of Freddie Mac and Tonya Yarchak of First Federal Bank
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February 21: Alabama Bankers Association 2023 Credit Conference |
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February 21: Lender visit with Fairway Mortage, Huntsville
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February 21: Lender visit with New American Funding, Huntsville
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February 21: Lender visit with Community Mortgage, Huntsville |
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February 22: Lender visit with The Mortgage Center, Cullman
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February 22: Realtor training with Cullman area Realtors, featuring James Hall of Freddie Mac and Brandon Snider and Thomas Moore of FirstBank
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February 23: Realtor training with Guntersville area Realtors, featuring James Hall of Freddie Mac and Brandon Snider and Thomas Moore of FirstBank
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New Participating Lenders
AHFA is pleased to welcome the following as participating lenders to the Step Up program:
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Alabama Housing Finance Authority | Montgomery, Alabama | 334.244.9200 | Email | Website
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