Loan program

AHFC First Home (Taxable First-Time Homebuyer Loan)

By Tyler Thompson · NC-Licensed Real Estate Agent · Updated November 2, 2026

Administered by:
Alaska Housing Finance Corporation (AHFC)
 · State · Below-Market Rate Mortgage
Funding status: Active

About the AHFC First Home (Taxable First-Time Homebuyer Loan)

AHFC First Home is a reduced-rate fixed first mortgage from the Alaska Housing Finance Corporation for first-time buyers, with no income limit and no acquisition cost limit. It is built for buyers who earn too much for First Home Limited or want a home above its price caps. On October 30, 2026, AHFC posted First Home at 6.875% for 30 years and 6.375% for 15 years, and AHFC reposts those rates to lenders every business day.

To qualify for AHFC First Home, no borrower can have owned a primary residence in the last three years. Unlike First Home Limited, AHFC lists no waiver of that rule for targeted areas or veterans on this loan, so a repeat buyer needs a different AHFC program. There is no income test at all: a Juneau household earning $175,000 is eligible, even though First Home Limited caps 3 or more people there at $158,125 under limits effective June 1, 2026. AHFC requires a 620 minimum credit score, and the borrower must be physically present in Alaska. Eligible homes are owner-occupied single-family houses, condos, CIC units, Type I manufactured homes and duplexes where one unit is your principal residence.

The standard down payment is 5%, and AHFC's 97% LTV option lowers it to 3% for 0.250% more in rate. First Home carries no federal recapture tax, so selling within nine years costs nothing extra. The trade-off is price: First Home Limited posted 6.500% on the same day, 0.375% less, for buyers under its $566,354 cap in most areas and $624,491 in Juneau.

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How much assistance

Reduced-rate 15- or 30-year fixed first mortgage for first-time buyers with no income or acquisition cost limits; 5% down, or 3% down with the 97% LTV option (adds 0.25% to the rate)

Eligibility

  • Income limits: No income limits.
  • First-time buyer required: Yes — Has not owned a primary residence in the last three years.
  • Credit score minimum: 620
  • Geographic restrictions: Alaska residents; home anywhere in Alaska. Owner-occupied single-family home, condo, CIC unit, duplex (one unit owner-occupied) or Type I manufactured home. No recapture.

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How to Apply for AHFC First Home (Taxable First-Time Homebuyer Loan)

Step 1: Decide between First Home and First Home Limited

Compare your household income with AHFC's First Home Limited table, effective June 1, 2026: $137,500 for 1 to 2 people in Juneau and $135,100 in Anchorage. If you are under the limit and the price is under the cap, First Home Limited is cheaper. If you earn more, or the home costs more than $566,354 in most areas, First Home is the right loan.

Step 2: Confirm the three-year first-time rule

List every home you have owned and lived in. If any borrower owned the home they lived in as a principal residence at any point in the last three years, you do not qualify for First Home. The test is about a primary residence, so gather deeds, closing papers or a sale statement that show the dates your last ownership ended.

Step 3: Finish the HomeChoice course for $250

The free online HomeChoice: Steps to Homeownership course takes about 2 hours and earns a certificate worth up to $250 in credit on an AHFC single-family loan. Email your name to register@ahfc.us to enroll; login details arrive by email. An approved class is required if you add the low-income rate reduction or an Affordable Housing Enhanced provider, and the credit makes it worth taking either way.

Step 4: Request quotes from approved lenders

AHFC buys loans from approved lenders and does not take applications itself. The list at ahfc.us/buy/prequalify/approved-lenders includes First National Bank Alaska, Guild Mortgage, Canopy Mortgage and Cornerstone Home Lending, each with NMLS number and branch phone numbers. Because AHFC posts lender rates daily, ask two or three lenders for a First Home quote and APR on the same day.

Step 5: Prequalify and set your down payment

Share pay stubs, tax returns and bank statements so the lender can confirm your 620 or higher score and your debt load. Then choose 5% down, which gift funds can cover on a single-family home, or the 97% LTV option at 3% down with 0.250% added to the rate. Ask whether energy-rated homes in your price range would earn an extra rate reduction.

Step 6: Write the offer and close

With no acquisition cost cap, the contract price is limited only by what you qualify for and the appraisal. Your real estate licensee writes the offer, and after it is signed your lender verifies income and credit, orders the appraisal and underwrites the file for AHFC. Documents record the business day after closing. AHFC's line is 907-338-6100, or 800-478-2432 toll free in Alaska.

Real Cost Example

A Juneau family of four earning $165,000 is over the $158,125 First Home Limited limit there, so First Home is its AHFC option. On a $449,300 home, the Juneau median in our data, 5% down is $22,465 and the loan is $426,835. At the 6.875% 30-year rate AHFC posted on October 30, 2026, principal and interest run about $2,804 a month, roughly $106 more than the same loan at 6.500%.

Estimated closing costs in Juneau run $9,000 to $13,500, so the family needs about $31,465 to $35,965 at closing. With the 97% LTV option the down payment drops to $13,479, but the 7.125% rate pushes the payment to about $2,936. Gift funds can supply the 5% contribution, and the HomeChoice certificate takes up to $250 off.

If the home is an existing 6 Star energy-rated house without natural gas, AHFC's Energy Efficiency Rate Reduction takes 0.375% off the first $250,000. On the $426,835 loan the blended rate of about 6.655% rounds up to 6.750%, so the payment falls to about $2,768. That saves about $36 a month, or about $13,000 across 30 years.

Combining With Other Programs

AHFC lists four loan options for First Home. The Energy Efficiency Rate Reduction takes 0.125% to 0.750% off the first $250,000 depending on the home's star rating, steps gained and fuel. The State Veterans Interest Rate Preference cuts 1% on the first $50,000 for qualified veterans under State Veteran income limits. The Interest Rate Reduction for Low-Income Borrowers cuts 0.5% or 1% on the first $180,000, and Affordable Housing Enhanced pairs the loan with provider assistance.

Because First Home has no income limit, most of its buyers earn too much for the income-tested add-ons: the low-income reduction stops at $106,800 for four in Juneau, and Affordable Housing Enhanced and the Home Opportunity Program serve low- to moderate-income buyers. AHFC lists no waiver of the three-year rule for this loan. Call AHFC at 907-338-6100 to confirm which options fit your file.

Other ways to cut cash to close include gift funds toward the 5% contribution, negotiated seller credits toward closing costs within your lender's limits, and the $250 HomeChoice credit. A home that gains energy steps after closing can also earn the efficiency reduction if the ratings and work are done within 365 days.

Pros and Cons

AHFC First Home gives first-time buyers a reduced fixed rate, 6.875% for 30 years and 6.375% for 15 years as posted on October 30, 2026, with no income limit and no purchase price cap. A Juneau or Anchorage household earning $165,000 or more still qualifies. There is no federal recapture tax when you sell, the 97% LTV option brings the down payment to 3%, and four AHFC options, including the 1% State Veterans Preference, can lower the rate further.

The biggest limitation is cost: First Home Limited posted 6.500% the same day, so a buyer who fits its limits pays about $106 a month more on a $426,835 loan by choosing First Home. The three-year first-time rule applies with no waiver listed for veterans or targeted areas. The income-tested add-ons rarely fit its buyers. Rates are posted to lenders daily. Buyers under the limits should use First Home Limited, and qualified veterans should compare the Veterans Mortgage Program.

Frequently Asked Questions

Does AHFC First Home have an income limit?+
No. AHFC First Home has no maximum income and no acquisition cost limit, which is what separates it from First Home Limited. It exists for first-time buyers who earn more than First Home Limited allows, such as $155,365 for 3 or more people in Anchorage under the limits effective June 1, 2026, or who want a home above the $566,354 cap in most areas. You still need a 620 credit score and income that supports the payment.
What is the difference between AHFC First Home and First Home Limited?+
About 0.375% in rate, plus limits and recapture. First Home Limited is bond-financed, posted 0.375% lower on October 30, 2026 at 6.500% for 30 years, and has income limits, acquisition cost limits and possible federal recapture tax. First Home posted 6.875% the same day with no income or price limits and no recapture. First Home Limited also waives the first-time rule in targeted tracts and for qualified veterans; AHFC lists no such waiver for First Home.
Who counts as a first-time buyer for AHFC First Home?+
Only buyers who have not owned a primary residence in the last three years. Owning a second home, cabin or rental that you never lived in as your principal residence does not disqualify you, and neither does owning a home more than three years ago. Each borrower on the loan must meet the rule. Buyers who owned and lived in a home more recently can ask an approved lender about other AHFC loans or, if they are veterans, the Veterans Mortgage Program, which lists no first-time rule.
How much down payment does AHFC First Home require?+
5% as standard, or 3% with AHFC's 97% LTV option, which adds 0.250% to the rate. On a $449,300 Juneau home that is $22,465 versus $13,479 upfront. AHFC estimates the 97% option at a little over $100 more a month on a $400,000 home. Gift funds can cover the 5% contribution on a single-family home, and closing costs are on top of the down payment.
Is there recapture tax on an AHFC First Home loan?+
No. AHFC states that First Home has no recapture provisions, so you can sell or refinance within nine years without owing the federal recapture tax that can apply to First Home Limited borrowers. That makes First Home a better fit for buyers who expect a job move or a fast-rising income. You still need to live in the home as your principal residence, and one unit of a duplex must be yours.

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Sources

Last verified November 2, 2026.

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