Through the Alaska Housing Finance Corporation, Alaska down payment assistance programs are available to first-time homebuyers. With the average down payment assistance ranging around $10,000, these programs have strict qualifications. Buyers who have not owned property within the last three years typically qualify for assistance.
For one to qualify for any of the several Alaska down payment assistance programs the buyer must meet with a loan originator and review the available options. The loan originator accesses the buyer’s credit report and educates the buyer on the programs.
Apart from the State Housing Corporation, The Home Opportunity Program (HOP), through the Alaska Community Development Corporation, also allows Alaska down payment assistance programs to low-income households.
Below are a list of mortgages that allow down payment assistance programs.
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
Alaska Down Payment Assistance Programs:
Affordable Housing Enhanced Loan Program This Alaska down payment program is offered in the form of either a grant, deferred payment(s), or forgivable loan. Occasionally this grant can be paired with other closing cost and Alaska down payment assistance options.
Alaska Housing Agencies:
Alaska housing agencies are your best resource for down payment assistance programs. Through funding from the US Department of Housing and Urban Development, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Baranof Island Housing Authority – Sitka
- Aleutian Housing Authority – Anchorage
- Alaska Housing Authority
- Association of Alaska Housing Authorities
- AVCP Regional Housing Authority – Bethel
- Bristol Bay Housing Authority – Dillingham
- Bering Straits Regional Housing Authority – Nome
- Cook Inlet Housing Authority
- Copper River Basin Regional Housing Authority – Copper Center
- Interior Regional Housing Authority
- Metlakatla Housing Authority – Metlakatla
- Kodiak Island Housing Authority – Kodiak
- North Pacific Rim Housing Authority – Anchorage
- Northwest Inupiat Housing Authority – Kotzebue
- Tlingit-Haida Regional Housing Authority (THRHA) – Juneau
- Tagiugmiullu Nunamiullu Housing Authority – Barrow
- Alaska Housing Finance Corporation