Frequently Asked Questions


Q. To be eligible for an AHFC loan, does a borrower have to be a resident of Alaska?
A. Yes, the borrower must be physically present in the State of Alaska with intentions of remaining in Alaska.

Q. Does AHFC have a minimum credit score?
A. Yes, the minimum credit score is 620.

Q. What is the definition of a First Time Homebuyer?
A. The borrower has not owned a primary residence in the last 3 years.

Q. What homebuyer education class does AHFC accept?
A. Alaska Housing’s HomeChoice class or education provided by NeighborWorks. Information about HomeChoice classes can be found at Information about NeighborWorks classes can be found at

Q. What is the difference between Tax Exempt and Veteran’s Tax Exempt Program?
A. The qualified veteran borrower does not have to meet the definition of First Time Homebuyer under the Veteran’s Tax Exempt Program, however; all other requirements apply.

Q. Does AHFC require a minimum contribution from the borrower toward the required down payment?
A. Yes. On conventional loans, AHFC requires 5% contribution from the borrower toward the required down payment. See the table below for required down payment:

Financing Single-Family Duplex Triplex Fourplex
Conventional 5% 10% 20% 20%

Q. Can gift funds be used for the borrower’s minimum contribution toward the down payment?
A. Gift funds are acceptable for the minimum contribution on a single family property and may, subject to restrictions, be used for a duplex property. Gift funds cannot be used for the minimum contribution on a triplex or fourplex, except when the LTV is 80% or less. See seller Memo 14-02 at

Q. Can AHFC finance a property built after 1992 that does not have a PUR-101 and PUR-102 (or CO)?
A. If the property is at least 5 years old, it can be financed using the Non-Conforming II program. Please see guidelines available in the Selling Guide at

Q. Which lenders offer AHFC’s Closing Cost Assistance Program (CCAP)?
A. Two of AHFC’s approved lenders offer CCAP: First National Bank Alaska and Mt McKinley Bank. For contact information, please see AHFC approved lender list:

Q. How often does AHFC interest rates change?
A. AHFC interest rates are subject to change daily. Rates are updated and posted to AHFC website each business morning. Rates can be found here:

Q. Does AHFC underwriting have a central location where a lender can send general questions and commitment change requests?
A. Questions and change requests may be sent to AHFC underwriting at