SOURCE: Alaska Housing Finance Corporation

October 19, 2007 15:04 ET

AHFC to Issue $53 Million in Bonds for Veterans' Loans

ANCHORAGE, AK--(Marketwire - October 19, 2007) - Alaskan veterans will benefit from lower interest rate home loans with $53 million in bonds to be issued by Alaska Housing Finance Corporation (AHFC). The AHFC board approved a resolution Wednesday that would allow staff to issue the following Veterans Mortgage Program Bonds:

--  $10,000,000 2007 Sub-Series A-1 utilizing calendar year 2007 private
    activity bond cap and subject to AMT
--  $28,000,000 2007 Sub-Series A-2 refunding of prior bonds
--  $15,000,000 2008 First Series utilizing calendar year 2008 private
    activity bond cap and subject to AMT
    

Note: The amounts listed above, which aggregate $53,000,000, may change as the structure of the transaction is refined.

In an effort to save on closing costs and achieve more efficient pricing, AHFC will sell two different bond series at the same time. However, since one will use 2007 volume cap and the other will use 2008 volume cap, they must be closed in their respective years. Therefore, the bond sale will occur in early December, with the 2007 series closing in December and the 2008 series closing in early January. The bonds are expected to be rated Aaa/AAA.

In the fiscal year ending June 30, AHFC financed $113.1 million in mortgages for 414 veterans. This compares to $11.5 million in mortgages for 44 vets during fiscal year 2006. The dramatic increase in the number of veterans' loans results from congressional action in May 2006 that makes any honorably discharged veteran within 25 years of discharge eligible for the program.

Besides Alaska, four other states offer this program for their veterans: California, Texas, Oregon and Wisconsin. Alaska's Veterans' Mortgage Program was originally made available to Alaska veterans in 1983 and is funded by tax-exempt mortgage revenue bonds, approved by Alaska voters. Qualified veterans can obtain an interest rate that is generally one-half to one percent lower than the interest rate of a conventional mortgage.

Since the program's inception, AHFC has provided more than $1.5 billion in loans to more than 10,000 veterans.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, nurses, public safety officers, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless. Since 1986, AHFC has contributed more than $1.5 billion to Alaska's State budget revenues through cash transfers, capital projects and debt service payments.

Contact Information

  • For more information, contact:
    Joe Dubler
    Chief Finance Officer
    907-330-8394
    Email Contact

    Sherrie Simmonds
    Corporate Communications Officer
    907-330-8447
    Email Contact