SOURCE: Alaska Housing Finance Corporation

April 05, 2007 14:08 ET

AHFC Awards $625,000 to Increase Home Ownership in Fairbanks

ANCHORAGE, AK -- (MARKET WIRE) -- April 5, 2007 -- Qualifying residents of Fairbanks will have greater access to home ownership through a $625,000 loan approved Wednesday by the Alaska Housing Finance Corporation (AHFC) board of directors.

The loan to Fairbanks Neighborhood Housing Services, Inc. (FNHS), a non-profit organization working to revitalize distressed neighborhoods and to preserve and develop affordable housing opportunities for all eligible residents, will continue its down-payment and closing-cost assistance programs for under-served markets by providing loans to eligible borrowers.

FNHS 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.

There are currently eight Sponsors, consisting of five non-profits and three regional housing authorities. Combined, they administer approximately $16.5 million in loans to 550 borrowers. Each Sponsor is limited to an annual allocation of $625,000.

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