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Buying a house in Alaska? You need to know this!

Buying a house in Alaska? You need to know this!

If you want to buy a house with low income in Alaska, there is help available to you! There are many programs that will assist you with tax reductions, down payment assistance and so much more! Since there are several different types of assistance for low income home buyers in Alaska, we’ve tried to organize this list by type as much as possible.


Alaska Housing Finance Corporation offers special loan packages to make your purchase easier.

AHFC Rural Loan Program can help you purchase or renovate a home in a small community. Small communities are defined as those with a population of 6,500 or fewer people that is not connected by road or rail to Anchorage or Fairbanks (or those with a population of 1,600 or fewer people that is at least 50 miles outside Anchorage or 25 miles outside of Fairbanks). This program provides a low interest rate on the first $250,000 of the home and a blended interest rate on any amount over that.

Manufactured Home Program loans provide special financing to buyers who want to purchase mobile homes that are not on permanent foundations. These mobile homes may be located in mobile home parks or on other lands. The loan terms may very depending on the location and size of the mobile home.

Nonconforming I and II Programs help buyers purchase homes with features that make it difficult to obtain standard financing, such as an unconventional foundation or utilities system. As long as the home is structurally sound and does not pose health or safety hazards, the Nonconforming Program may be able to help make the purchase possible.

Taxable First Time Homebuyer Program provides a reduced interest rate to eligible borrowers. This program is designed for those who do not meet the income and purchase price limits of the lower-interest Tax Exempt First Time Homebuyer Program.


Tax Exempt First Time Homebuyer Program provides lower interest rates to first-time homebuyers who meet income and purchase price limits.

Veterans Programs are available for honorably discharged veterans and military personnel who have completed their initial military obligation. You must apply within 25 years of your discharge date in order to qualify for this program.

Alaska has a special interest rate for low income borrowers!

Energy Efficiency Interest Rate Reduction provides a reduced interest rate for homebuyers who are purchasing an energy efficient home. It can also be used by buyers who are making energy efficient improvements.

Interest Rate Reduction for Low Income Borrowers (IRRLIB) provides an interest rate reduction of 0.5 percent or one percent depending on your family income. The reduction applies to the first $180,000 of the loan. Any amount above $180,000 has a blended interest rate rounded up to the nearest 0.125 percent.

State Veterans Interest Rate Preference offers qualifying veterans a one percent interest rate reduction on the first $50,000 of their loan amount. Veterans must meet “state vet” income limits.

You can get down payment assistance to help with your first time homebuyer purchase!

Affordable Housing Enhanced Loan Program (AHELP) provides down payment assistance or secondary financing to assist with your home purchase.

To qualify, you must complete a homebuyer education class, own no other residential property in the same general area and purchase an eligible property.


For more information on down payment assistance programs, select your area from the list below!

Some Alaska communities offer special first time home buyer programs!

Alaska Community Development Corporation provides housing and energy-efficiency solutions for Alaskan homebuyers in the southeast, south central, Copper River Valley, Bristol Bay and Aleutians areas.

This agency can assist with several different housing needs:

Anchorage Area

Anchorage Neighborhood Housing Services offers homebuyer classes and can help you coordinate your loan. They are listed as a down payment assistance source but I wasn’t able to find any information about that on their website.

Cook Inlet Lending Center can provide Down Payment Assistance (DPA) loan with a 4 percent fixed interest rate over 30 years. This secondary loan can provide up to $60,000 toward your down payment but cannot exceed 20% of the home’s purchase price. You must qualify based on income and other criteria for this program. Cook Inlet Lending Center also offers tribal lending, individual development accounts, HUD 184 loans and more.


North Pacific Rim Housing Authority is a fantastic resource for Alaskan Native and American Indian homebuyers. The North Pacific Rim Housing Authority has several programs to assist homebuyers. They can provide up to $40,000 in down payment assistance. They can provide up to $30,000 toward weatherization improvements. They even offer lease-to-purchase options and affordable rentals for those who can’t purchase a home in the traditional way!

Rural Alaska Community Action Program helps first time home buyers purchase a home with no down payment and lower-than-typical mortgage payments. The buyers join a group of 6-12 other qualified buyers who work together to build a community of attractive single-family homes. Each household must work at least 35 hours per week to build the community. This “sweat equity” removes the need for the down payment and reduces the amount of the mortgage. Their 2018 building season is taking place in Soldotna, where they are building homes on 1 – 1.5 acre lots.

Fairbanks Area

Fairbanks Neighborhood Housing Services provides down payment assistance, pre-purchase counseling, matched savings plans, HOP grants and more to homebuyers. They can even provide affordable rentals to those who cannot currently afford homeownership.

Interior Regional Housing Authority serves an area larger than the entire state of Texas. The IRHA has a series of helpful programs for Native Alaskans and American Indians.

Tribal Equity Advantage Mortgages provide low-cost mortgages to low income families. These loans include a grant of up to 20% of the home’s purchase price (the purchase price cannot exceed $200,000).

Home Ownership Program helps low income homeowners who cannot purchase a home with conventional means. This program basically provides a 20 year mortgage at 4 percent interest for those who qualify. Home Ownership Program for Elders provides a similar program on a 10 year term for borrowers age 62 or older.

The Self-Help New Construction Program provides building materials to aspiring homeowners who have the skills and ability to build their own homes. The applicant must provide the labor while IRHA will be responsible for installing mechanical and electrical materials. IRHA will inspect the home’s construction while the work is being performed and upon completion. As long as you fulfill the terms of the program, the funds can be forgiven and you won’t have to pay anything back!

Juneau Area

Tlingit and Haida Regional Housing Authority provides many programs for native and non-native individuals and families in southeastern Alaska. They offer financial counseling, up to $20,000 in down payment and closing cost assistance, rural loan programs and more!

Get MORE help in Alaska!