Down Payment Assistance - Targeted Neighborhoods in Municipality of Anchorage

to help revitalize the five target neighborhoods (Fairview, Government Hill, North Mountain View, Muldoon, and Spenard)

What is the purpose of the NeighborHomes program?

• To fill the gap between what you can afford and the cost of housing.
• To encourage home ownership in the target neighborhoods.

What kinds of properties are eligible for purchase?

• One- to two-unit properties in the targeted neighborhoods.
• Purchaser must occupy the property as their primary residence.

What are the maximum purchase prices?

• 1-Unit Properties: $316,709

Who can participate in the NeighborHomes program?

• Purchasers must be first-time homebuyers.
• Purchasers generally may not own other residential real estate.
• Purchasers’ liquid assets must not exceed $45,000.
• Home buyer counseling and post-purchase counseling are required for all purchasers.
• Maximum income limits apply:

Loan Details

• For purchase of homes in the five targeted neighborhoods.
• These are second mortgages: maximum loan is 20% of the sales price; minimum is $1,500.
• 3.5%* or 4.5%** interest rate, depending on income level, 25-year term (interest-only payments for the first 5 years).  Loans over $40,000** will be amortized for a 25-year term.
• Loan fee 1% of the loan amount or $250, whichever is greater, plus a $75 underwriting fee.
• First mortgages provided by participating local lenders.
• Purchasers must generally make a minimum 2-3% down payment from their own resources.

Participating Lenders:

• Alaska USA Mortgage Company (AK157293)
• Denali Alaskan Mortgage
• First National Bank Alaska
• Homestate Mortgage (AK189191)
• Residential Mortgage, LLC (AK167729)
• Wells Fargo Home Mortgage

For More Information: Call 677-8490 and ask to speak with a Loan Officer.

*6.04% APR based on $40,000 loan with a 25-year term, first 5 years interest only including $250 loan fee plus other finance charges.