SOURCE: Alaska Housing Finance Corporation

March 21, 2007 13:38 ET

AHFC Awards $1.25 Million in Zero Percent Loans to Increase Homeownership

ANCHORAGE, AL -- (MARKET WIRE) -- March 21, 2007 -- Qualifying residents of Anchorage will have greater access to home ownership through two $625,000 loans approved by the Alaska Housing Finance Corporation (AHFC) board of directors.

The $625,000 loan to Habitat for Humanity Anchorage (HFHA), a 501(c)(3) non-profit organization, will continue its down-payment and closing-cost assistance programs for under-served markets by providing loans to eligible clients, not exceeding $170,000.

The $625,000 loan to Anchorage Neighborhood Housing Services (ANHS) will continue its down-payment assistance for under-served markets.

Both organizations will assist borrowers who would not qualify for home ownership due to changes in the market, which include higher housing costs, low inventory in target neighborhoods, and lower interest rate subsidies resulting in an increase in the need for assistance for low-income borrowers.

Loans to Sponsors (LTSP) is a program under which AHFC, subject to the availability of funds, makes zero percent loans to non-profit corporations, regional housing authorities, or government entities to make home ownership more accessible to low-income borrowers.

The program ultimately will provide financing to lower-income individuals or persons who would not otherwise qualify for financing due to income limitations, down-payment requirements, loan-to-values, or other considerations. Recipient eligibility for the loans is based on 80% of the median income for the area, adjusted for family size and property location, as well as the lending criteria established by the Sponsor's guidelines.

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 nearly $1.5 billion to Alaska's State budget revenues through cash transfers, capital projects and debt service payments.

Contact Information

  • For more information, contact:
    Sherrie Simmonds
    Corporate Communications Officer
    Email Contact.