Housing Acquisition Rehabilitation Program

The goal of this program is to assist low- to- moderate income families in obtaining homeownership by funding a portion of closing cost and down payment.  By reducing the amount to the first mortgage it will enable a low-to-moderate income family an opportunity to purchase affordable housing.  The funding for this program is provided through the Municipality of Anchorage, Department of Neighborhoods pass through grant from the U.S. Department of Housing and Urban Development.

Guidelines

  • A borrower’s total household income may not exceed the U.S. Department of Housing and Urban Development’s 2009 low-income limits outlined below:

Family Size

1 2 3 4 5 6 7 8
$44,800 $51,200 $57,600 $64,000 $69,100 $74,250 $79,350 $84,500
  • The borrower’s cash liquid assets cannot exceed $10,000.00 after the borrower’s contribution to the purchase of the property.
  • The residence must remain owner occupied throughout the applicable affordability period.  Affordability period for $15,000 to $40,000 is 10 years.  Affordability period for over $40,000 is 15 years.  If the property ceases to be the primary residence for any reason, the full amount of the assistance due at that time will become immediately due and payable.
  • The minimum assistance is $1,000.  The maximum down payment/closing cost loan is $40,000.00.  There are no monthly payments or interest charged on the loan.  The loan is a 2nd or 3rd mortgage that is secured by a deed of trust and recorded on the property.  Assistance is defined as down payment/closing cost loans and purchase-price subsidy (the difference if the appraised value is higher than the sales price).
  • The borrower must attend an AHFC Home Choice Class and provide certification of completion.  In addition, the borrower must meet with NeighborWorks® Anchorage for one-on-one counseling to review these provisions of the loan.
  • Within 10 days of an accepted EMA the borrower must provide to NeighborWorks® Anchorage copies of all household income, in efforts of making a preliminary determination on compliance with income requirements of the program.  Income documentation must include but not limited to 30 days most recent pay stubs, prior two years tax returns, any other direct verification of sources of income for a household.
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