Alaska Down Payment Assistance Programs

Photo courtesy of MarculescuEugenIancuD5200Alaska at Flickr.

Photo courtesy of MarculescuEugenIancuD5200Alaska at Flickr.

 

Alaskans! Let’s you get you a house!

Below are down payment assistance programs for the state of Alaska. You will see two categories: statewide and borough specific. If you don’t see a DPA program for your borough, don’t lose hope. New grants and services are made every day. Also, the best program that works best for you may not be advertised on the web. Before resorting to a statewide or national down payment assistance program, contact your borough’s local housing authority because they may have a program better suited to your needs.

Cities are statistically more likely to have a DPA program than rural areas. Even if you don’t consider your purchase area to be ‘rural,’ the US Department of Agriculture may disagree.

Also, don’t forget about USDA home loans. A USDA home loan covers 100% of the purchase price, but is not technically a down payment assistance program. While USDA loans may only be listed below in certain counties, that doesn’t mean you can’t get a USDA loan for your area if it’s not listed. It just means it’s not as prevalent in your preferred area.

Dig deeper for both. Call your local housing authority to see if it has any unlisted DPA programs. Next, enter in the address of a house you like into the USDA website (which can be found here.) Even if you work in a city, you may be able to find a USDA DPA approved home within a short driving distance.

Lastly, if you are an indigenous Alaskan native, meaning your heritage descends from a tribe such as the Iñupiat, Yupik, Aleut, Eyak, Tlingit, Haida, or Tsimshian, you may qualify for a cultural specific DPA program regardless of where you live or want to live in Alaska.

Good luck hunting!

Down Payment Assistance Programs Available Statewide or in Multiple Boroughs

Alaska Community Development Corporation: Home Opportunity Program (HOP)

Note: This program is available in the following localities: Kenai Peninsula, Lake and Peninsula Borough, the Mat-Su Borough, Glennallen, Valdez, Cordova, Juneau, Haines, Ketchikan, Petersburg, Wrangell, Sitka and Kodiak.

  • Website: https://www.fha.com/grants/alaska-home-opportunity-program

  • Current point of contact: Lori Tice: ltice@alaskacdc.org, or 907.746.5680 x 103

  • 0% loan

  • $20,000 maximum available, unless below 60% of median income (in which case $30,000 may be granted)

  • First $10,000 forgivable after five years

  • Funds must be repaid if the buyer does not own and occupy the purchased property for the required period of affordability

  • Funds are secured by a “Note and Deed of Trust”

  • Funds are limited; distributed on a first come first serve basis

  • Funds may not be used to reduce the amount of the primary loan

  • Qualified applicants can also receive $3,000 in closing cost assistance

  • Must be a first-time buyer

  • Home must be the purchaser’s primary residence

  • Annual household income must be less than 80% of the median income

  • Buyers must attend a homebuyer education class approved by AHFC

  • Buyer must not be in arrears

  • Buyer must not have any child support obligations

  • Each borough/ locality has its own purchase price limitation:

    • Mat-Su Borough: $234,000

    • Kenai Peninsula: $219,000

    • Glennallen, Valdez, Cordova: $202,000

    • Haines Borough: $197,000

    • Ketchikan: $247,000

    • Petersburg: $184,000

    • Wrangell: $183,000

    • Sitka: $330,000

    • Kodiak: $275,000

    • Juneau: $323,000

  • Applicants must obtain their first mortgage from a participating lender. These include: Academy Mortgage, Academy Mortgage Corporation, Cornerstone Home Lending First National Bank of Alaska, Alaska USA Mortgage Company, Residential Mortgage (includes Summit Mortgage and Preferred Mortgage), Kodiak Island Housing Authority, Homestate Mortgage, Denali Federal Credit Union, First Bank, True North FCU, NeighborWorks Alaska, and USDA Rural Development.

Alaska Housing Finance Corporation

Tlingit-Haida Regional Housing Authority (THRHA) Down Payment Assistance Program

  • Website: https://www.fha.com/grants/alaska-down-payment-assistance

  • Funds can be used for either down payment or closing cost assistance

  • 5% fixed rate second mortgage

  • 10 year loan

  • Up to $20,000 available to qualified applicants

  • Payment is deferred for the first five years

  • 10% is forgiven each year as long as the property is owner occupied

  • $50 processing fee; 1.5% loan origination fee

  • Loan amount must be repaid if the home is sold prior to maturity

  • Only available to Alaska Natives or Native American tribal members

  • Annual household income must not exceed 80% of the area’s median income

  • Applicants must complete a first-time homebuyer education course

  • Applicants must prove that qualification for bank loan is contingent upon receiving THRHA assistance

  • Mobile homes are not permitted

  • Property must be the borrower’s primary residence

  • Property must be located in Southeast Alaska

  • Purchase price of property cannot exceed $300,000

  • Borrower’s total cash after closing cannot exceed $3,000

United States Department of Agriculture (USDA)

  • Website: https://www.rd.usda.gov/ak

  • Not technically a down payment assistance program, but a USDA loan often offers 100% financing for houses in eligible rural areas

  • Household income must meet certain requirements

  • You can determine if a home is located in an eligible area by clicking on the appropriate loan link. Your options are Single Family Housing Guaranteed, Single Family Housing Direct, and Multi-Family Housing

  • Link for loans and home eligibility: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

Down Payment Assistance in Alaska: Anchorage Borough

Anchorage Neighborhood Housing Services, Inc. dba NeighborWorks Alaska (formerly Anchorage Neighborhood Housing Services

  • Website: http://www.nwalaska.org/

  • Phone: 907-677-8490

  • Down Payment assistance goes through the statewide program Alaska Housing Financing Corporation (AHFC), which is discussed above.

Cook Inlet Lending: Down Payment Assistance Program

  • Website: http://cookinletlending.com/down-payment-assistance/

  • Phone: 907.793.3010

  • Current point of contact: Kurt Hermansen-Jent (khermansenjent@cookinletlending.com)

  • Must have a credit score of 640

  • Must have a first mortgage debt-to-income ratio no higher than 30 percent

  • Total DTI must not be higher than 40%

  • DPA may not exceed 20% of the purchase price, and cannot exceed $60,000. Note: This does not mean that the maximum purchase price of your home can only be $300,000, as many loans do not require a 20% down payment.

  • Interest rates currently offered are 4% for a 30 year loan term.

  • Must have a reserve of two months of mortgage payments (including PITI)

  • Must not have had a foreclosure within the last six years

  • Must be the purchaser’s primary residence

  • Income limits are:

    • 1 person household: $75, 525

    • 2 person household: $86, 250

    • 3 person household: $97, 050

    • 4 person household: $107, 850

    • 5 person household: $116, 475

    • 6 person household: $125,100

    • 7 person household: $133, 725

    • 8 person household: $142, 350

  • Must be prequalified with an AHFC approved lender

  • This program is available in the Anchorage Borough, Kenai Peninsula Borough, and the Matanuska-Susitna Borough

Southcentral Alaska Down Payment Assistance: Includes portions of Matanuska-Susitna Valley, Kenai Peninsula, Prince William Sound, and the Copper River Valley (but excludes Anchorage)

Alaska Community Development Corporation (ACDC)

  • Website: http://www.alaskacdc.org/

  • Phone: 907-746-5680

  • Contact to see if your home is eligible

  • Works through HOP (detailed extensively above)

  • Can be used towards closing costs, but cannot exceed $3,000

  • Is a zero interest loan where the first $10,000 is forgivable after five years

Down Payment Assistance in Alaska: Fairbanks North Star Borough

Fairbanks Neighborhood Housing Services

  • Website: http://www.fnhs.org/index.html

  • Phone: (907) 451-7230

  • Eligibility is determined by neighborhood, income, and family size

  • Family of two may only make $52,400 or less a year

  • Family of four may only make $65,450 or less a year

  • 20% down payment assistance loan through HOP (Home Opportunity Grant)

  • Loan may be used for down payment and closing costs

  • Interest rates vary on income and each borrower’s ability to pay

Interior Regional Housing Authority (IRHA)

  • Website: http://www.irha.org/hop/

  • Phone: 1.800.478.4742 or 907.452.8135

  • Serves the tribes of the Doyon Region

  • Participates with both HOP (detailed above), HOPE (a subsidiary of HOP, designed to help would-be homeowners 62 or older) and TEAM

  • To be eligible for TEAM DPA assistance, applicants must:

    • Be a Native Alaskan or American Indian

    • Have a household income below the HUD median income limit

    • Be able to provide a certificate of Indian blood from the BIA or provide identification of Native status and Tribal enrollment

    • Provide 100% of the earnest money deposit (normally $1,000)

    • Property must either be a condo, townhouse, or single family residence

    • Assistance cannot be used to purchase a rental property, duplex, four-plex (etc.)

    • Purchase price may not exceed $200,000

    • Grant can be used for up to 20% of the purchase price

    • Can be used for closing costs

    • Note: Funds are limited so apply as soon as possible

Down Payment Assistance in Alaska: Kenai Peninsula Borough

Cook Inlet Lending: Down Payment Assistance Program

  • Website: http://cookinletlending.com/down-payment-assistance/

  • Phone: 907.793.3010

  • Current point of contact: Kurt Hermansen-Jent (khermansenjent@cookinletlending.com)

  • Must have a credit score of 640

  • Must have a first mortgage debt-to-income ratio no higher than 30 percent

  • Total DTI must not be higher than 40%

  • DPA may not exceed 20% of the purchase price, and cannot exceed $60,000. Note: This does not mean that the maximum purchase price of your home can only be $300,000, as many loans do not require a 20% down payment.

  • Interest rates currently offered are 4% for a 30 year loan term.

  • Must have a reserve of two months of mortgage payments (including PITI)

  • Must not have had a foreclosure within the last six years

  • Must be the purchaser’s primary residence

  • Income limits are:

    • 1 person household: $75, 525

    • 2 person household: $86, 250

    • 3 person household: $97, 050

    • 4 person household: $107, 850

    • 5 person household: $116, 475

    • 6 person household: $125,100

    • 7 person household: $133, 725

    • 8 person household: $142, 350

  • Must be prequalified with an AHFC approved lender

  • This program is available in the Anchorage Borough, Kenai Peninsula Borough, and the Matanuska-Susitna Borough

Ketchikan, Alaska, Down Payment Assistance:

Ketchikan Indian Community Housing Authority: Home Buy-Down Program

  • Website: www.kictribe.org/programs/housing/documents/2016-HomeBuy-downApplication.pdf

  • Up to 20% of the purchase price, or $30,000, whichever is lower

  • Up to $2,500 in closing cost assistance after borrower contribution

  • If property is sold before five years, KICHA will recover 100% of received amount, plus 4% interest

  • Must be a first time home buyer, or not have owned a home in the past 3 years

  • May be required to take a home buyer’s education course

  • Applicants will be pre-screened to determine their ability to qualify for lender financing; applicants have 90 days to prove qualification

  • Maximum eligible annual household incomes are as follows:

    • 1 person: $49,784

    • 2 persons: $56,896

    • 3 persons: $64,008

    • 4 persons: $71,120

    • 5 persons: $76,810

    • 6 persons: $82,499

    • 7 persons: $88,189

  • Maximum eligible 3 month household incomes are as follows:

    • 1 person: $12,446

    • 2 persons: $14,224

    • 3 persons: $16,002

    • 4 persons: $17,780

    • 5 persons: $19,203

    • 6 persons: $20,625

    • 7 persons: $22,047

  • Property must be a site-built home

  • Property must not be older than 10 years

  • Property must be in standard condition

  • See website for further details

Kodiak Island Borough Down Payment Assistance Program:

Kodiak Island Housing Authority (KIHA) Home Loan Program

  • Website: https://www.findaffordablehousing.org/housing-search/featured-housing-authority/alaska-housing-authorities/119-kodiak-island-housing-authority

  • Funded by the U.S. Department of Housing and Urban Development (HUD)

  • Buy down up to 30% of the purchase price

  • Closing costs up to 3% of the total purchase price

  • Down payment assistance up to 2% of the purchase price

  • Available to Native Americans who are below the median income

  • Must be a first time homebuyer (or owned a home in the past 3 years)

  • Must be at or below 80% of the median income for Kodiak Island

  • Gross income must not exceed the following limits:

    • 1 Person: $41,350

    • 2 Persons: $47,250

    • 3 Persons: $53,150

    • 4 Persons: $59,050

    • 5 Persons: $63,800

    • 6 Persons: $68,500

    • 7 Persons: $73,250

    • 8 Persons: $77,950

Down Payment Assistance in Alaska: Matanuska-Susitna Borough

Cook Inlet Lending: Down Payment Assistance Program

  • Website: http://cookinletlending.com/down-payment-assistance/

  • Phone: 907.793.3010

  • Current point of contact: Kurt Hermansen-Jent (khermansenjent@cookinletlending.com)

  • Must have a credit score of 640

  • Must have a first mortgage debt-to-income ratio no higher than 30 percent

  • Total DTI must not be higher than 40%

  • DPA may not exceed 20% of the purchase price, and cannot exceed $60,000. Note: This does not mean that the maximum purchase price of your home can only be $300,000, as many loans do not require a 20% down payment.

  • Interest rates currently offered are 4% for a 30 year loan term.

  • Must have a reserve of two months of mortgage payments (including PITI)

  • Must not have had a foreclosure within the last six years

  • Must be the purchaser’s primary residence

  • Income limits are:

    • 1 person household: $75, 525

    • 2 person household: $86, 250

    • 3 person household: $97, 050

    • 4 person household: $107, 850

    • 5 person household: $116, 475

    • 6 person household: $125,100

    • 7 person household: $133, 725

    • 8 person household: $142, 350

  • Must be prequalified with an AHFC approved lender

  • This program is available in the Anchorage Borough, Kenai Peninsula Borough, and the Matanuska-Susitna Borough

Down Payment Assistance in Alaska: Sitka Borough

Baranof Island Housing Authority

  • Website: bihasitka.org/Programs/Ownership/closingassist.asp

  • Must be an Alaskan or American Indian tribal member

  • Household income must be less than 100% of the MFI

  • Borrower must show a need for the loan

  • Must be a first time home buyer, or not have owned a home in the last three years

  • Converts to a forgiven grant after the fifth year of residency

  • Funds cannot exceed $5,000

  • Funds can also be used for closing costs

  • Must contribute at least $1,500. The $1,500 can be used for:

    • Earnest money deposit

    • Lender required improvements

  • If house is sold or transferred before five years, BIHA will recapture the amount given either through the sale or transfer

  • Must be willing to sign a second or third mortgage agreement, which may include a Deed of Trust Promissory Note and a Deed of Trust