AHFC First Home Limited (Tax-Exempt First-Time Homebuyer Loan)

A $395,900 home, the Anchorage median in our data, sits well under the $566,354 First Home Limited cap for the Municipality. With the 97% LTV option the down payment is $11,877 and the loan is $384,023. At AHFC's October 30, 2026 posted 30-year rate of 6.500% plus the 0.250% add-on, principal and interest come to about $2,491 a month. Putting 5% down instead takes $19,795 upfront and about $2,377 a month.

Estimated closing costs in Anchorage run $8,000 to $12,000, so a buyer on the 97% option needs about $19,877 to $23,877 in cash before credits. The HomeChoice certificate takes up to $250 off that. Through AHFC's Affordable Housing Enhanced option, Cook Inlet Lending Center or North Pacific Rim Housing Authority can add a grant or deferred loan in Anchorage, in amounts each provider sets.

A household of four earning $106,800 or less in the Anchorage MSA also qualifies for the 0.5% Interest Rate Reduction for Low-Income Borrowers on the first $180,000. On the $384,023 loan the blended rate of about 6.516% rounds up to 6.625%, which lowers the payment to about $2,459. That saves about $32 a month, or roughly $11,500 over 30 years.

First Home Limited works with four AHFC loan options. The State Veterans Interest Rate Preference takes 1% off the rate on the first $50,000 for qualified veterans under State Veteran income limits. The Interest Rate Reduction for Low-Income Borrowers takes 0.5% or 1% off the first $180,000. The Energy Efficiency Rate Reduction takes 0.125% to 0.750% off the first $250,000 of a rated home, and Affordable Housing Enhanced adds a provider's down payment help.

Outside the Municipality of Anchorage, the Home Opportunity Program from Alaska Community Development Corporation adds up to $30,000 at zero interest for buyers under 80% of area median income, and the first $10,000 is forgivable over five years. ACDC describes its funds as very limited and first come, first served; call 907-746-5680 ext. 2. Ask AHFC about layering options at 907-338-6100.

Gift funds can cover the 5% contribution on a single-family home, according to AHFC's lender FAQ, and a seller credit can cover closing costs within your lender's limits. The free HomeChoice class earns up to $250. A 15-year term at the posted 6.250% raises the monthly payment but cuts total interest by more than half compared with 30 years.

First Home Limited ties the Veterans Mortgage Program for AHFC's lowest posted single-family rate, 6.500% on a 30-year loan on October 30, 2026, versus 6.875% for First Home and 7.125% for My Home. Its income limits run from $120,300 to $189,140 depending on area and household size, high enough for most Alaska first-time buyers. The 97% LTV option brings the down payment to 3%. The first-time rule is waived in targeted tracts and for qualified veterans, and four rate options can stack on top.

The biggest limitation is federal recapture tax: sell at a gain within nine years after your income has risen above the federal limits, and part of the rate benefit goes back to the IRS on Form 8828. The $566,354 acquisition cap rules out many larger homes in Anchorage, and duplexes must be at least 5 years old. Rates change every business day. Buyers over the limits can use AHFC First Home, and qualified veterans can compare the Veterans Mortgage Program.