3% Down Payment Option Available for Homebuyers Who Choose Alaska Housing Finance Corporation

Responding to a market hurdle where potential homebuyers struggle to come up with the thousands of dollars necessary for a down payment, Alaska Housing Finance Corporation launched its 97% loan-to-value option this month.

“The initial cost of homeownership can be daunting,” says Bryan Butcher, AHFC’s CEO/executive director. “This announcement is exciting because homebuyers can save thousands of dollars on their down payment, making homeownership more accessible to Alaskans.”

The addition to AHFC’s single-family lending follows passage of House Bill 273 introduced by Governor Dunleavy last year and supported by the legislature, public comment and AHFC’s board of directors.
“Our Strong Families initiative is about fulfilling my vision to make Alaska the best and most affordable place to live, work, and raise a family,” says Governor Mike Dunleavy. “AHFC’s high credit ratings, portfolio management and commitment to its mission offer more opportunities for more Alaskans. I thank the board and staff for their leadership.”

AHFC’s loans are available to all qualified Alaskans. As the state’s housing finance agency, AHFC is able to sell tax-exempt bonds that provide first-time homebuyers and veterans with a lower interest rate than they might be able to obtain through federal Government Sponsored Entities like Fannie Mae or Freddie Mac. The performance of AHFC’s lending portfolio is lauded by S&P and Moody’s whose AA+/Aa2 ratings consistently note the Corporation’s low delinquency and foreclosure rates, 2.60% and 0.06%, respectively, at the end of February. Servicing for AHFC’s home loans stays in state, giving homeowners an added layer of protection if they face financial hardship.

Those interested in homeownership are encouraged to take AHFC’s free homebuyer education classes, HomeChoice™ and FinallyHome! to learn about the process, prepare for the purchase and better identify which loan is best for their circumstances. Contact information for approved AHFC lenders is listed under the Buy A Home tab on AHFC’s website.
The addition of the 3% down payment option for AHFC’s single-family loans follows the launch of a $10,000 New Home Construction Rebate in January that was also funded by the legislature and supported by Governor Dunleavy.

The following chart illustrates the differences a homebuyer could expect on a $400,000 home sale price financed under a 97% LTV versus the new 95% LTV option. Interest rates for all of AHFC’s single-family programs are updated every business day and published at AHFC’s website.
 

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Alaska Housing Finance Corporation is a public corporation with more than 50 years of providing Alaskans access to safe, quality and affordable housing through home financing programs, energy efficiency, public housing and more. Since 1986, AHFC has contributed more than $2.2 billion to the State of Alaska’s General Fund.