SOURCE: Alaska Housing Finance Corporation

June 26, 2008 20:40 ET

AHFC Awards $625,000 to Increase Homeownership in Fairbanks

ANCHORAGE, AK--(Marketwire - June 26, 2008) - Qualifying residents of Fairbanks will have greater access to home ownership through a $625,000 loan approved 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 (Recipients).

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 (the Sponsor) to make home ownership more accessible to Alaskans. AHFC has included a requirement that all of the Sponsor's borrowers receive weatherization counseling as a condition of their loan approval.

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 application amount 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, health care professionals, 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

    Eric Havelock
    Multifamily Underwriter Supervisor
    907-330-8245
    Email Contact