AHFC Approved $625,000 Zero-Percent Loan to Increase Homeownership in Fairbanks

By | January 21, 2011

Anchorage, AK (Source: AHFC) — Qualifying Alaskans will have greater access to homeownership through a $625,000 loan approved by the Alaska Housing Finance Corporation board of directors. The loan will allow Fairbanks Neighborhood Housing Services, Inc. (FNHS) to continue its down-payment assistance loan program for under-served markets and provide assistance to borrowers who would not qualify for home ownership due to income limitations, down-payment requirements, loan-to-values, or other considerations.Since July 1993, AHFC has loaned a total of $4.675 million to FNHS, which in turn has closed a total of 285 loans under this program. Loans to Sponsors (LTSP) is a program under which AHFC, subject to the availability of funds, makes zero percent loans to non-profit corporations, regional housing authorities or government entities to make homeownership more accessible to low- to moderate-income borrowers. Currently eight Sponsors, consisting of five nonprofits and three regional housing authorities, administer approximately $16.5 million in low-interest loans to 545 low- to moderate-income borrowers. Sponsors are limited to an annual allocation of $625,000.

Eligibility for the loans is based on 80 percent of the median income for the area, adjusted for family size and property location, as well as the lending criteria established by FNHS’s guidelines. AHFC’s loan is repaid by FNHS from the recipient’s payments paid to FNHS.

In consideration of rising energy costs and the fact that recipients are income eligible for AHFC’s Weatherization Program, AHFC has amended the program to include a requirement that FNHS counsel the recipients about the benefits of the Weatherization Program and encourage their participation.

AHFC is a self-supporting public corporation with offices in 16 communities statewide. It provides statewide financing for multi-family complexes, congregate facilities, and single-family homes, with special loans for first-time home buyers, low- and moderate-income borrowers, veterans, teachers, nurses, public safety officers, and those living in rural areas of the state. AHFC also provides energy and weatherization programs, low-income rental assistance in 17 communities, and special programs for the homeless. Since 1986, AHFC has contributed more than $1.9 billion to Alaska’s State budget revenues through cash transfers, capital projects and debt service payments.

For more information about Loans to Sponsors, contact: Eric Havelock, Multi-Family Underwriter Supervisor, 907 330 8245, ehaveloc (at) ahfc.state.ak (dot) us

For more information about AHFC, contact; Sherrie Simmonds, Corporate Communications Officer, 907 330 8447, ssimmond (at) ahfc.state.ak (dot) us

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