First-Time Home Buyer Programs in Alaska

Alaska Housing Finance Corporation (AHFC) Programs:

First Home Limited:

Eligibility: Targets first-time homebuyers who haven’t owned a primary residence in the past three years, unless in a targeted area or a qualified veteran.
Offerings: Offers lower interest rates on mortgages with income and purchase price limits.
Requirements:

• Income must fall under AHFC limits, varying by area and household size (higher in targeted areas).
• Minimum credit score of 620.
• Submit federal income tax returns for the last three years.
• Must occupy the property within 60 days of closing.

First Home:

Benefits: Provides reduced interest rates without income or acquisition cost limits, ideal for first-time buyers exceeding First Home Limited thresholds.
Eligibility: Open to first-time homebuyers (no homeownership in the last three years) with no income or price restrictions.

Affordable Housing Enhanced Loan Program (AHELP):

Description: Partners with governmental and nonprofit agencies to offer down payment assistance or secondary financing as grants, deferred payments, or forgivable loans.
Requirements: Must complete a homebuyer education course; specific eligibility varies by provider.

Local Programs:

Anchorage

Cook Inlet Down Payment Assistance (DPA): Offers up to 20% of the purchase price (max $60,000) as a second mortgage with a 30-year fixed rate for residents of Anchorage Borough, Kenai Peninsula Borough, or Matanuska-Susitna Borough.

Fairbanks

Fairbanks Neighborhood HOME Opportunity Program: Provides down payment and closing cost assistance for lower-income first-time buyers in Fairbanks North Star Borough. Household income must not exceed 80% of the area median income, and the property must be the primary residence.

Statewide (Tlingit Haida Regional Housing Authority - THRHA)

Down Payment Assistance Program: Offers up to $20,000 as a loan for down payment and closing costs for qualifying first-time homebuyers with demonstrated need across Alaska.

Additional Information:

• HomeChoice Course Incentive: AHFC offers a $250 closing credit for completing their free HomeChoice homebuyer education course when using an AHFC mortgage.
• USDA and VA Loans: Zero-down payment options for rural areas (USDA) or veterans/active military (VA).
• FHA Loans: Requires a minimum 3.5% down payment, suitable for buyers with credit scores as low as 580 (10% down if below 580).