Last Updated on August 23, 2023 by Hannah Stevens
Mortgage Assistance for Homebuyers in Alaska
The Alaska Housing Finance Corporation offers two programs for first-time homebuyers to offset the costs of buying a new home: the Tax Exempt First-Time Homebuyer Program (TEP), and the Taxable First-Time Homebuyer Program.
The Tax-Exempt First-Time Homebuyer Program (TEP) offers lower interest rates to eligible borrowers who meet the maximum income and acquisition costs limits. The Taxable First-Time Homebuyer Program offers lower rates as well. However, it comes without income or acquisition cost limits.
These programs are only for first-time homebuyers. Therefore, they do not apply to those who have owned a primary residence within the last three years. All applicants must also submit copies of their federal income tax returns from the past three years.
TEP applicants need to meet an additional condition of having a stated income and acquisition cost limits. It is also important to remember that houses within Targeted Areas (designated by HUD) have higher incomes and acquisition costs limitations. Additionally, TEP Borrowers must read the Tax-Exempt Booklet.
The qualified properties are restricted to single-family homes, condominiums, Common Interest Community units (CIU), duplexes, and Type I manufactured houses. A duplex must be less than five years old, and used as a multi-family residence in that period. A minimum of one unit in the duplex must serve as the principal residence of the borrower for the Taxable First-Time Buyer Program. On the other hand, a duplex must be at least five years old, and have been occupied for five years as a multi-family residence for TEP.
Borrowers who get a TEP loan might also have to pay the Federal “recapture” tax following the sale of their house.
Fairbanks Neighborhood Housing Services Down Payment Assistance Program is available to help first-time homebuyers who live in Fairbanks North Star Borough and are looking to buy a single-family home. The LTS Program helps income-eligible families qualified for home loans. However, they are unable to pay the initial costs of a mortgage.
LTS Down Payment Assistance Program has a major benefit: it helps buyers avoid private mortgage insurance. This assistance comes as a second mortgage which must not be over 20% of purchase price of the home.
Every applicant must meet a number of requirements to qualify for the LTS Program. They must be U.S citizens or permanent residents of the state of Alaska. They must have a secured or pre-qualified first mortgage, and have a credit score of at least 620. These applicants must also have an annual household income at or below 120% of the area median income. Additionally, they need to make a minimum contribution of $1,000 or 1% of purchase price, whichever is greater.
Single-family residences within Fairbank North Star Borough are eligible property types. Condominiums or townhomes must be on the AHFC Approved Condo list to be eligible, but duplexes are not qualified.
- 1-person household: $77,640
- 2-person household: $88,800
- 3-person household: $99,840
- 4-person household: $110,880
These limits are significantly higher than they are for the First-Time Homebuyer Assistance Programs in Alabama
Are you interested in the First-Time Homebuyer Assistance Programs in Arizona?