Loans to Sponsors Memo LTS 20-01

LTS Memo 20-01

DATE:  February 7, 2020  

TO:  ALL AHFC LOANS TO SPONSORS PARTICIPANTS
FROM: Jan Miyagishima
Director, Mortgage Operations

Re:  Property Eligibility

CONTACT: Eric A. Havelock
Lending Officer II

Effective immediately, evidence of compliance with AHFC’s construction standards and evidence of compliance with AHFC’s thermal and ventilation standards may be documented with a properly executed AHFC Form PUR-103. This requires the property to be at least two years old, have a Home Energy Rating Certification of two stars or better, and to be inspected by a licensed home inspector or a licensed engineer. A revised Recipient Transmittal Form is attached.

Re:   LTSP Recipient Funding Availability

CONTACT: Eric A. Havelock
Lending Officer II

Effective immediately, Loans to Sponsors Program requirements for Recipient loans are amended to expand the available funding to additional Alaskans. Specifically, the Sponsor’s Program will be required to cap Recipient funding at no more than 20% of the purchase price or appraised value, whichever is less.

This change is being instituted to assist the maximum number of recipients with this limited resource.
 
All other terms and conditions of the Loans to Sponsors Program guidelines shall remain the same.

Re:   LTSP Sponsor Funding Availability

CONTACT: Eric A. Havelock
Lending Officer II

Effective with applications submitted after the date of this memo, all applications will be reviewed under the following program criteria:
• LTSP borrowing will be provided in three levels:
o a $500,000 loan will carry a note rate of 2.75%;
o a $1,000,000 loan will carry a note rate of 3.0%; and,
o a $1,500,000 will carry a note rate of 3.25%.

Loan amounts in between these amounts will carry a blended rate depending on the level of borrowing.

AHFC’s fiscal year runs from July 1st through June 30th. Sponsors are reminded that should their Program guidelines change as a result of these interest rate adjustments, prior approval from AHFC is required. All other terms and conditions of the Loans to Sponsors Program guidelines shall remain the same.