Alaska First-Time Home Buyer 2022 Programs and Grants
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Be sure to keep this in mind when comparing homes for sale — in general, energy efficiency translates to lower utility costs. In partnership with various agencies and nonprofits, the state’s Affordable Housing Enhanced Loan Program offers assistance with down payments and secondary financing. To be eligible, borrowers may not own other residential property in the same area. The state’s website says eligible properties may include owner-occupied single-family homes, condos and some manufacturer homes. A USDA home loan is a zero-down-payment mortgage for eligible rural and suburban home buyers.
Browse through our frequent homebuyer questions to learn the ins and outs of this government backed loan program. Borrowers must be first-time homebuyers , a qualified veteran, or have previously owned a home within a targeted area census tract. More information, including qualifying income limits, can be found on the AHFC website.
First-Time Homebuyer Programs in Alaska
The Affordable Housing Enhanced Loan Program offers down payment assistance via a number of organizations throughout Alaska. Many of the assistance options come in the form of a second mortgage with a fixed interest rate, but there are also some grant options that don’t need to be repaid at all. For example, the North Pacific Rim Housing Authority offers eligible low- or moderate-income Alaska Native and American Indians grants of up to $40,000 that can be forgiven after 15 years. You might also qualify for rate reductions if you’re buying a preowned home, or making energy-efficiency improvements to one.
Although there is no official minimum credit score, most VA-approved lenders require scores of at least 640. The Home Opportunity Program provides assistance to low-income households in Alaska by offering zero interest rate loans with up to $10,000 forgivable over a 5-year period. Qualified applicants may be eligible to receive down payment and/or closing cost assistance.
Down Payment Assistance for First-Time Buyers in 2022
A duplex must be at least 5 years old and occupied as a multi-family residence for at least the last five years. If you’re an Alaska Native or Native American, be sure to check the list of organizations that might be able to help you. So home prices in Alaska are actually a bit lower on average and growing more slowly than in many other parts of the nation.
The minimum credit score is 640, and there are no restrictions on income or home cost. This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low.
Alaska First-Time Home Buyer Programs of 2021
Note that high traffic areas such as Anchorage and Juneau are not eligible. Once your lender is chosen, provide proof of income with your last two pay stubs and tax returns from the past two years. Compare interest rates from different lenders in your area of Alaska. Compare their responses and choose one who not only provides the best offer, but has consistent customer service and retains a high rating from the Better Business Bureau.
Tax bill programs award tax abatements and tax relief to home buyers in specially-designated zones of a city. Buyers receive favorable, long-term tax treatment which lowers their tax bill and saves money. Mortgage discount points are a one-time, up-front fee paid to your lender at closing in exchange for a lower interest rate. One discount point costs one percent of your loan size and can lower your rate by 0.25 percentage points. Get pre-approved as the first step towards closing cost credits. Federal DPA programs such as The $25,000 Downpayment Toward Equity Act target low- and middle-income first-time buyers and often add one or two additional eligibility criteria.
Typical costs included in a mortgage payment
This assistance may come from a governmental agency, nonprofit organization, or regional housing authority; and each provider sets their own requirements. You may also be able to get help with your closing costs if you’re applying for a government-backed mortgage . If you qualify, you can borrow 3% or 4% of your mortgage balance. But, again, some of the details about repayment and terms are vague. In order to qualify for any of those, you’ll need an income that’s below local household income limits. If you’re buying in a targeted area , your income may be higher, as shown on this list.
Alaska Housing offers qualified veterans a 1 percent interest rate reduction applied to the first $50,000 of their mortgage loan. State Veterans Interest Rate Preference is available for honorably discharged state vets. Members on active duty are not eligible and veterans must submit authentication to the lender, such as a DD-214 and VA Certificate of Eligibility. This first-time homebuyer loan offers a reduced interest rate to eligible borrowers. Unlike First Home Limited, there are no maximum income limits or acquisition cost limits. First Home Limited offers lower interest rates to eligible first-time homebuyers who meet maximum income limits and acquisition cost limits.
An ARM typically has a lower initial interest rate than a fixed rate option. If you intend to sell the house after a few years, an adjustable-rate mortgage with a lower initial interest may save you money over a fixed rate option. Lenders look most favorably on debt-to-income ratios of 36% or less — or a maximum of $1,800 a month on an income of $5,000 a month before taxes. The Downpayment Toward Equity Act may offer first-time buyers up to $25,000 in cash that can be used for down payment, closing costs, and other home purchases.
Down payment assistance programs don’t replace primary mortgages – they enhance them to make homeownership more affordable. Therefore, to qualify for down payment assistance, home buyers must also qualify for their mortgage. First-time homebuyer assistance programs and/or grants were researched by the team at FHA.com. Reductions of up to 1 percent are available for qualified borrowers.
Anchorage, the largest city in the largest U.S. state, is a very popular place to settle in. Residents of the Anchorage Borough, Kenai Peninsula Borough or the Matanuska-Susitna Borough may be eligible for financial assistance on their mortgage through Cook Inlet Lending Center. The Down Payment Assistance Loan program provides eligible borrowers with loan amounts not to exceed 20 percent of the purchase price, up to $60,000 maximum. The loan is considered a second mortgage and is offered at a fixed interest rate over a 30-year term.
First-time homebuyers have not owned a primary residence in the last three years. Targeted areas have higher income and acquisition cost limits. To find out if a property is located in a targeted area census tract, go to fact finder and perform a street address search. Don’t just look at advertised rates online; actually apply for preapproval and compare the interest rates and fees you’re offered. That’s the only way to know you’re getting the best deal possible on your new home loan.
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