Interest Rate Reduction

To promote the energy efficiency of existing and newly constructed homes, AHFC offers energy efficiency interest rate reductions (EEIRR) to homebuyers for properties meeting certain criteria.

How the Program Works

AHFC offers interest rate reductions when financing new or existing energy-efficient homes or when borrowers purchase and make energy improvements to an existing home. Any property that can be energy rated and is otherwise eligible for AHFC financing may qualify for this program.

Interest rate reductions apply to the first $200,000 of the loan amount. A loan amount exceeding $200,000 receives a blended interest rate rounded up to the next 0.125 percent. The percentage rate reduction depends on whether or not the property has access to natural gas.

New Construction

One of the following rate reductions may apply on newly constructed properties that exceed the minimum Alaska Building Energy Efficiency Standard (BEES). All homes constructed on or after April 1, 2007, must meet BEES 2007.

You may qualify for a $7,500 rebate under the Home Energy Rebate Program.

Access to Natural GasNo access to Natural Gas
  • 5 Star Rating: -0.250 percent
  • 5 Star Plus Rating: -0.375 percent
  • 5 Star Rating: -0.375 percent
  • 5 Star Plus Rating: -0.500 percent

Existing Energy-Efficient Properties

Existing properties (completed for more than one year or previously occupied) may be eligible for one of the following rate reductions.

Access to Natural GasNo access to Natural Gas
  • 5 Star Rating: -0.125 percent
  • 5 Star Plus Rating: -0.250 percent
  • 5 Star Rating: -0.250 percent
  • 5 Star Plus Rating: -0.375 percent

Existing Properties with Energy Improvements

The lender must notify AHFC at the time of application that the borrower intends to participate in the program. Within 365 days of loan closing, the borrower must obtain an initial energy rating, complete the improvements, obtain the final energy rating and submit documentation to the loan servicer. AHFC modifies the interest rate based on the number of points and steps of improvement.

Access to Natural GasNo access to Natural Gas
  • 1 Step: -0.125 percent
  • 2 Steps: -0.250 percent
  • 3 Steps: -0.500 percent
  • 4 Steps: -0.625 percent
  • 1 Step: -0.250 percent
  • 2 Steps: -0.375 percent
  • 3 Steps: -0.625 percent
  • 4 Steps: -0.750 percent

Reference

How to Apply