Alabama Housing Finance Authority Mortgage Credit Certificate

Alabama Housing Finance Authority (AHFA)

Available Down Payment

About This Program

Federal tax credit that allows first-time homebuyers to claim 20-40% of annual mortgage interest paid as a dollar-for-dollar federal income tax credit. Credit continues for the life of the loan as long as the home remains your principal residence.

Annual tax credit equals 20-40% of mortgage interest paid, varies by county

Official source site checked live on 2026-06-17.

Data last verified 2026-06-09. How we verify our data.

Key Details

  • Federal tax credit on mortgage interest
  • 20-40% of annual mortgage interest paid
  • Credit continues for life of loan
  • Must be first-time homebuyer
  • Income and purchase price limits apply

How to Apply

A grant-savvy contractor in Phenix City, AL can handle the paperwork, inspections, and timelines so your funding releases on schedule. Getting matched is free.

Your application paperwork

Documents you will likely need

  • Your federal tax return for the year of the work (this benefit is claimed on your taxes, not through a separate application).
  • Proof you own and live in the home (deed, recent mortgage statement, or property tax bill).
  • A government-issued photo ID for every owner on title.
  • Household income proof (recent pay stubs, last year's tax return, or benefit award letters for everyone in the home).
  • The program's own application form, completed (use the official link or phone number on this page).

Requirements vary by program and locality. Confirm the exact rules on the official program page. We can help you prepare your paperwork, but you submit it yourself.

Deadline: Ongoing, subject to federal allocation

Questions about this program?

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