First-Time Home Buyer Programs in Alaska (2026)

AHFC's second loan for first-time home buyers, for people who earn too much for First Home Limited or want a pricier house. It has a reduced fixed rate but no income limit, no price cap and no recapture tax. The rate is higher than First Home Limited's: on October 30, 2026, AHFC posted 6.875% for 30 years against 6.500%. You still can't have owned a primary home in the last three years. It can be a single-family home, condo, duplex or Type I manufactured home. The 620 credit minimum applies.

A rate cut added to an AHFC loan for lower-income buyers. Households at or below 80% of area median get 0.5% off; at or below 60%, they get 1% off. The cut applies to the first $180,000 of the loan, and the rest gets a blended rate. For a family of four, the 0.5% limit runs from $95,750 to $106,800 by area (June 1, 2026). You must be a first-time buyer, own no other home within 50 miles and take a homebuyer class. Homes 10 years old or older need an inspection.

A lower-rate AHFC first mortgage for veterans who apply within 25 years of leaving active duty. Active-duty members qualify once they finish their initial service obligation. There is no first-time rule, and it can finance a single-family home or, with limits, a duplex to fourplex. On October 30, 2026, AHFC posted the same rate as First Home Limited. You can add the low-income or energy rate cuts. You can't add the State Veterans 1% preference to this loan.

A 1% rate cut on the first $50,000 of most AHFC single-family loans for honorably discharged veterans. You need at least 90 days of active duty, or five years in the Guard or Reserves. A surviving spouse may qualify. Current active-duty members don't. Household income must be under AHFC's State Vet limits, for example $106,800 for four in Anchorage and Juneau (June 1, 2026). It can't be used with the Veterans Mortgage Program, so compare the two.

AHFC's loan for homes in small communities. A town qualifies if it has 6,500 or fewer people and no road or rail link to Anchorage or Fairbanks. Towns of 1,600 or fewer on the road system also count if they are far enough out: 50 miles from Anchorage or 25 from Fairbanks. The rural rate covers the first $250,000, and anything above that costs 1% more. Mortgage insurance is required below 10% down. It can also finance an owner-built new home.

A rate cut on the first $250,000 of an AHFC loan for an energy-efficient home. Existing homes rated 5 Star Plus or 6 Star get 0.125% to 0.375% off. New homes get 0.25% to 0.5%. Homes without natural gas get the larger cuts. You can also earn up to 0.75% off by improving a home's rating within 365 days of closing. Your lender must tell AHFC at application that you plan to do this.

This is how down payment assistance gets attached to an AHFC loan. AHFC doesn't fund it: a government agency, nonprofit or regional housing authority does. The help may be a grant, a deferred loan or a forgivable loan, under that provider's rules. AHFC lists partners by region, including Cook Inlet Lending Center in Anchorage, Interior Regional Housing Authority in Fairbanks and Alaska Community Development Corporation elsewhere. One borrower must take a homebuyer class. Funds depend on each provider.

The largest statewide down payment assistance in Alaska. Alaska Community Development Corporation runs it everywhere except the Municipality of Anchorage. It is a 0% loan of $1,250 to $30,000 for the down payment, up to $3,000 of closing costs, and a rate buy-down if needed. The first $10,000 is forgiven over five years. The rest is repaid when you sell or refinance. Income must be under 80% of area median, and you can own no other home. Funding is very limited and first come, first served.

A $15,000 grant from the Federal Home Loan Bank of Des Moines for first-time buyers under 80% of area median income. It covers down payment and closing costs. You take a financial literacy class before closing, and the price must fit AHFC's limit. It is forgiven after five years; sell or refinance sooner and you repay a prorated share. Only member lenders offer it, such as First National Bank Alaska, Northrim Bank and Credit Union 1. The October 2026 funds are fully reserved.

A $25,000 grant from FHLBank Des Moines for Native buyers earning up to 80% of area median income. One buyer must be an enrolled tribal member, a member or shareholder of an Alaska Village or Regional Corporation, or an eligible Native Hawaiian. There is no first-time rule, but first-time buyers take a homebuyer class. You need a signed purchase agreement to enroll. The grant is forgiven after five years. It can't be combined with Home$tart. The bank released $150,000 on October 1, 2026.