Alaska First Time Homebuyer Programs

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Updated on Thursday, February 21, 2019

If the state known as the Last Frontier is where you’d like to buy a home, you’ll have no shortage of programs to help make that possible. Alaska has several programs to make purchasing a home a reality for first-time homebuyers.

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Statewide, Alaska offers several forms of assistance, including two first-time homebuyer programs that offer long-term, low interest loans. If you’re a veteran, you’ll have the option of saving even more.

Alaska first-time homebuyer programs

The Alaska Housing Financing Corporation (AHFC) provides statewide financing and special loans for first-time homebuyers, low- to moderate-income borrowers, veterans, people living in rural areas and more.

Eligibility for Alaska assistance

Depending on the type of loan or assistance you need, different qualifications will apply, but most of AHFC’s single-family home loans require that you

  • Be a credit-qualified Alaska resident
  • Be current on child support payments
  • Occupy the purchased property as an owner within 60 days of closing
  • Have only one AHFC loan for an owner-occupied property
  • Have a down payment of 5% for a single-family home, 10% for a duplex or 20% for a triplex or fourplex
  • For most programs, a first-time homebuyer is anyone who hasn’t owned a primary residence in the last three years.

Tax-Exempt First-Time Homebuyer Program

The Tax Exempt Program (TEP) offers long-term loans with low interest rates for first-time homebuyers who meet certain income and property cost limits.

Features

The TEP program offers

  • Low interest rates for 15- and 30-year mortgages for single-family homes.

Eligibility

To qualify for the program, you must

  • Not have owned a home in the last three years unless the home is in a targeted area census tract or you are an eligible veteran.
  • Meet income limits for non-targeted areas. These are $91,000 to $104,900 for one or two people and $104,650 to $118,335 for three or more people. For targeted areas, income limits are $109,200 to $119,040 for one or two people and $127,400 to $138,880 for three or more people.
  • Buy a home that does not exceed $271,164 for new or existing single-family homes or $347,178 to $571,500 for an existing duplex.
  • Buy either a single-family home, condominium, Common Interest Community unit, duplex or Type I manufactured home.
  • Provide three years’ worth of federal income tax returns.
  • Read the Tax-Exempt First-Time Home Buyer Booklet.

How it works

If you’re interested in applying for a TEP loan, contact an AHFC-approved lender for a prequalification appointment.

Before you meet with a lender, gather the personal information you’ll likely need, including pay stubs from the past 30 days, three years’ worth of tax returns with W2s, checking/savings account statements and a list of your debt. A lender will review your credit history, debt and income and make sure you qualify for the loan. They will then help you fill out a mortgage application.

Taxable First-Time Homebuyer Program

The Taxable First-Time Homebuyer Program offers lower interest rates for first-time homebuyers and is aimed at people who either make more money or want to buy a property that’s more expensive than the TEP income and acquisition cost limits allow. This program has no limits on either.

Features

The Taxable First-Time Homebuyer Program offers:

  • Interest rates of 4.5% for a 30-year mortgage and 4% for a 15-year mortgage for a single-family home.

Eligibility

To qualify for the program, you must:

  • Not have owned a home in the last three years, unless the home is in a targeted area census tract or you are an eligible veteran.
  • Buy a single-family home, condominium, Common Interest Community unit, duplex or Type I manufactured home.
  • Live in at least one unit of any duplex you’re intending to buy.
  • Provide three years’ worth of federal income tax returns.

How it works

If you’re interested in applying for a Taxable First-Time Homebuyer Program loan, contact an AHFC-approved lender for an appointment.

When you meet with them, you’ll likely need to show pay stubs from the past 30 days, three years’ worth of tax returns with W2s, checking/savings account statements and a list of your debt. The lender will review your credit history, debt and income, and walk you through the application process.

Closing Cost Assistance Program

The Closing Cost Assistance Program offers a 30-year mortgage with funding of up to 4% of the initial principal balance of the loan. Despite the name, the funds can be used toward a down payment, too. There are no income or purchase price limits and no first-time homebuyer requirement.

Features

The Closing Cost Assistance Program offers

  • A 30-year fixed-rate mortgage with a fluctuating interest rate for a single-family home.
  • Assistance of 3% or 4% of the mortgage cost, to be used for closing costs or a down payment. Percentage depends on your credit qualifications.

Eligibility

To qualify for the program, you must:

How it works

If you’re interested in the Closing Cost Assistance Program, talk to an AHFC-approved lender to see how you can benefit.

They will likely want to see pay stubs from the past 30 days, tax returns and W2s from the past three years, checking/savings account statements and a list of your debt. The lender will review your credit history, debt and income and help you fill out a mortgage application. For more information, call 907-330-8400 or toll-free 888-854-3884.

State Veterans Interest Rate Preference

Eligible veterans can combine this reduced-interest-rate program with most AHFC single-family loan programs.

Features

The State Veterans Interest Rate Preference program offers

  • A 1% interest rate reduction on the first $50,000 of the loan amount.
  • If the loan is for more than $50,000, you’ll get a blended interest rate rounded up to the next 0.125%.

Eligibility

To qualify for the program, you must:

  • Be an honorably discharged member of the U.S. Armed Forces who served at least 90 days of active duty. You may also be an honorably discharged member of the Alaska Army or Alaska Air National Guard or a reservist who has served at least five years. A combination of service in the Guard and Reserves may also qualify. Surviving spouses of qualified veterans may be eligible as well.
  • Not be current active duty military.
  • Provide a copy of a DD-214 and VA Certificate of Eligibility or other evidence of an honorable discharge.
  • Not have an income that exceeds State Veteran income limits.

How it works

To apply for a State Veterans Interest Rate Preference, contact an AHFC-approved lender.

When you meet with a lender, bring pay stubs from the past 30 days, three years’ worth of of tax returns with W2s, checking/savings account statements and a list of your debt. The lender will review your qualifications and help you apply for the program.

National first-time homebuyer programs

Alaska offers many options for new homebuyers, whether you’re looking to lock in a low interest rate or need help with closing costs or a down payment. And the state’s two first-time homebuyer targeted programs cover a wide range of incomes and home prices.

But you’re not limited to state programs. You can also spread out your search to national first-time homebuyer programs. To learn more, check out LendingTree’s guide to national first-time homebuyer programs.

The information in this article is accurate as of the date of publishing.