Down Payment Path

Down Payment Assistance Programs in Alaska

Alaska offers a variety of programs to assist homebuyers with down payment and closing costs. These options are designed to make homeownership more attainable for a wide range of buyers, not just first-time purchasers.

AHFC Closing Cost Assistance Program

The Alaska Housing Finance Corporation (AHFC) Closing Cost Assistance Program helps homebuyers cover upfront costs associated with purchasing a home.

  • Offers up to 4% of the loan amount for closing costs and down payment assistance.
  • Available to all homebuyers meeting specific income and credit requirements.
  • Must be combined with an AHFC first mortgage.

Tax-Exempt First-Time Homebuyer Program

The Tax-Exempt First-Time Homebuyer Program, also offered by AHFC, provides reduced interest rates for eligible buyers.

  • While primarily for first-time buyers, exceptions are available for buyers purchasing in specific areas.
  • Pairs with down payment assistance to reduce upfront costs.
  • Income and purchase price limits apply.

Rural Housing Loan Programs

For buyers in rural areas, Alaska offers USDA Rural Development Loans, which require no down payment and can include closing cost assistance.

  • Available to buyers in USDA-designated rural areas.
  • Income limits apply, but eligibility is broad in many parts of the state.
  • Can be used with other state or local assistance programs.

Municipal and Regional Programs

Several municipalities and regions in Alaska offer additional programs to help homebuyers with down payments and closing costs.

  • For example, Anchorage and Fairbanks often provide assistance tailored to local needs.
  • Programs may include grants or deferred loans to reduce upfront expenses.
  • Eligibility criteria and funding levels vary by location.

Native American Housing Assistance

The HUD Section 184 Indian Home Loan Guarantee Program supports Alaska Natives and American Indians in achieving homeownership.

  • Offers low down payment requirements, typically 2.25% of the purchase price.
  • Available for homes located on or off Native lands.
  • Can be combined with AHFC or USDA programs for additional savings.

Alaska’s down payment assistance programs make homeownership more attainable by reducing the financial barriers to buying a home. Whether you’re purchasing in a rural community, urban area, or on Native lands, these resources can help you achieve your goal of owning a home in the Last Frontier.