AnCHOR (Anchorage Communities Home Ownership Resource) Loan

What is the purpose of the AnCHOR loan?

The goal of the AnCHOR program is to raise the standard of living for low-to-moderate-income families by assisting them with home ownership.  Often, a low-wage family has the income stability and creditworthiness to own a home, but cannot save enough funds for the down-payment and closing costs and still have enough residual funds for home maintenance and furnishings.

The AnCHOR program assists Anchorage’s low-wage families who are first time home-buyers by funding a portion of the down-payment and closing costs.  The down-payment assistance funds are used to lower the first mortgage and make the monthly payments more affordable.  These families are ready for home ownership in a home, and can service affordable monthly first mortgage payments on a regular basis.

Who can participate in the AnCHOR program?

A borrower’s total household income may not exceed U.S. Department of Housing and Urban Development’s (HUD) established low-income limits, according to family size.  These income limits are adjusted on an annual basis.  Listed below are HUD’s 2009 income limits.

Family Size

Asset Limitation

Total liquid assets of the household cannot exceed $10,000 after the borrower’s portion of the down-payment and closing costs have been deducted.  Liquid assets include savings and checking accounts, certificates of deposit, trust accounts, notes receivable, etc.  Assets not counted for eligibility include personal and household goods, vehicles (including RVs, ATVs, campers, snowmachines, etc.), retirement accounts (IRAs, 401Ks, and similar instruments), or grant/loans/scholarships for college education.  The applicant may not currently, or will not at the time of the AnCHOR loan closing, own any other residential property.

Loan Fees

NeighborWorks® Anchorage, which manages AnCHOR for the Municipality, will charge a $150 application fee.  Application fees are not an eligible HOME-cost and may not be included in the AnCHOR loans.

Maximum/Minimum Assistance

The maximum amount of assistance will be $30,000 for homes located within the Municipality of Anchorage.  The minimum amount of assistance is $1,000.

How does loan repayment work?

There are no monthly payments or interest associated with this loan.  Five percent of the AnCHOR loan amount will be forgiven at the end of each year until 50% of the loan is forgiven (e.g., on the first anniversary of the closing date 5% of the original AnCHOR loan amount will be forgiven, then on the second anniversary another 5% of the original AnCHOR loan amount will be forgiven, etc.)  The remaining 50% is repaid at sale or transfer of title to the property. 

There is no proration of the amount forgiven during the year.  If the property is sold at any time during the year, the amount due and payable will be the amount due on the previous anniversary date. 

The property must remain the borrower’s primary residence throughout the forgiveness periods.

If the property ceases to be the borrower’s primary residence, the balance of the loan (original balance minus amount forgiven) will become immediately due and payable. 

How do I apply?

Borrowers will attend AHFC’s Home Choice class and choose from a list of approved lenders to secure their first mortgage loan.  The lenders will refer the AnCHOR applicants with documentation to NeighborWorks® Anchorage, which administers the program for the Municipality of Anchorage. 

Other guidelines apply.  Contact NeighborWorks® Anchorage for a complete policy statement.  Loans are subject to availability.