The Alaska Housing Finance Corporation (AHFC) offers low-interest mortgage loans, and down payment and closing cost assistance to first-time home buyers and repeat buyers.
This article takes a look at the requirements and provides links to the homebuyer program page for every city in Alaska.
If you are unable to pay your mortgage or rent payments due to Covid please visit the AHFC website.
National First-Time Homebuyer Loans
- FHA Loans – FHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
- Conventional Loans – Conventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
- USDA Loans – USDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
- VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
- HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.
Who is Eligible
Alaska considered anyone who has not owned a home in the last three years a first-time homebuyer. AHFC programs are primarily for first-time homebuyers but there are some programs for repeat buyers.
- Reside in Alaska
- Must qualify for a mortgage loan
- Buyers who haven’t owned a home in 3 years are considered first-time homebuyers
- A $250 closing credit to buyers who take a free HomeChoice homebuyer course
- Must be your primary residence
- Single-family homes, multi-unit properties, condominiums, and manufactured homes