AHFC Approves $625,000 Zero-Percent Loan to Increase Homeownership
Anchorage, Thursday, September 16, 2010 - Qualifying Alaskans will have greater access to home ownership through a $625,000 loan approved by the Alaska Housing Finance Corporation (AHFC) board of directors Tuesday. The loan will allow Anchorage Neighborhood Housing Services (ANHS), also known as Neighborworks Anchorage, to continue its down-payment assistance loan program for under-served markets, and provide assistance to borrowers who would not qualify for home ownership due to changes in the market, such as higher housing costs or lower interest-rate subsidies.
Since June 1996, AHFC has loaned a total of $21.25 million to ANHS, which in turn has closed a total of 773 loans with an average loan of $30,045 under this program.
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- to moderate-income borrowers. Currently eight Sponsors, consisting of five nonprofits and three regional housing authorities, administer approximately $16.4 million in low-interest loans to low- to moderate-income borrowers. Sponsors are limited to an annual allocation of $625,000.
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 percent% 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's loan is repaid by ANHS from the Recipient's payments paid to ANHS.
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 $1.95 billion to Alaska's State budget revenues through cash transfers, capital projects and debt service payments.