First-Time Homebuyer Loans

A first-time homebuyer is someone who has not owned a primary residence in the last three years. Alaska Housing has two loans for first-time homebuyers, First Home and First Home Limited. 

First Home Limited

First Home Limited offers lower interest rates to eligible first-time homebuyers who meet maximum income limits and acquisition cost limits.

How it Works

To be eligible first-time homebuyers, borrowers may not have owned a primary residence in the last three years unless the house is within a targeted area (as defined below) or if they are qualified veterans.

  • Targeted areas (HUD designated census tracts) have higher income and acquisition cost limits. To find out if a property is located in a targeted area census tract, go to fact finder and perform a street address search.
  • Qualified veterans must have been retired, discharged or released from duty under conditions other than dishonorable, and active duty military borrowers must have completed their initial military obligation. Acceptable evidence of eligibility includes a copy of the veteran's Certificate of Eligibility or Title 38 letter and a DD214 or Statement of Service. No previous use of the First Home Limited or Veterans Mortgage program is allowed under the veterans' exception.

Federal regulations establish maximum income limits and acquisition costs for this program. Income is determined by multiplying the borrower's gross monthly income by 12. Acquisition cost is the total cost of acquiring the property from the seller.

Additional Considerations

  • Eligible properties are limited to single-family homes, condominiums, Common Interest Community units, duplexes and Type I manufactured homes.
  • A duplex must be at least 5 years old and occupied as a multi-family residence for at least the last five years.
  • Borrowers must submit copies of federal income tax returns for the most recent year (additional years may be required).
  • Borrowers who obtain a First Time Limited loan may have to pay federal "recapture" tax following the sale of their home. Alaska Housing recommends consulting a tax professional to determine if the recapture penalty applies.
  • Borrowers are required to read the tax-exempt booklet.

LOAN OPTIONS

How to Apply

First Home

This first-time homebuyer loan offers a reduced interest rate to eligible borrowers. Unlike First Home Limited, there are no maximum income limits or acquisition cost limits.

How it Works

This loan is designed for first-time homebuyers whose income exceeds First Home Limited income limits or who wish to purchase a home that exceeds First Home Limited acquisition cost limits.

Additional Considerations

  • First-time homebuyers have not owned a primary residence in the last three years.
  • Eligible properties include owner-occupied single-family residences, condominiums, Common Interest Community units, duplexes and Type I manufactured homes.
  • At least one unit in a duplex must be the principal residence of the borrower.

LOAN OPTIONS

How to Apply: