Down payment assistance
Home Opportunity Program (HOP)
By Tyler Thompson · NC-Licensed Real Estate Agent · Updated November 2, 2026
About the Home Opportunity Program (HOP)
The Home Opportunity Program (HOP) is a zero-interest down payment and closing cost loan of up to $30,000 for low-income Alaska buyers, run by the Alaska Community Development Corporation (ACDC) in Palmer with Alaska Housing Finance Corporation (AHFC) funding. The first $10,000 is conditionally forgiven over five years. ACDC offers HOP statewide except the Municipality of Anchorage, and it warns that funding is very limited and first come, first served.
To qualify for HOP, household income must be below 80% of HUD median income, adjusted by region. ACDC's chart, posted as of June 1, 2025, sets the four-person limit at $91,900 in Fairbanks-College, $102,950 in Juneau, $90,950 in the Mat-Su Borough and $89,300 on the Kenai Peninsula, while one person in Fairbanks-College tops out at $64,350. You must not own another home, and the HOP home must be your only home and primary residence. Every buyer completes a homebuyer education class from a HUD-approved housing counseling agency. ACDC posts no credit score minimum or price cap, and the primary lender alone approves the first mortgage. The stricter rule is the payment test: your first mortgage payment should generally be at least 25% of gross qualifying income. Buyers behind on child support are ineligible.
HOP carries 0% interest and no monthly payment, secured by a note and deed of trust. Any balance above the forgiven $10,000 is repaid when you sell or refinance, and recapture applies if you stop owning and living in the home during the period of affordability. Closing cost help is capped at $3,000, down payment help comes only when the lender requires a down payment, and the minimum award is $1,250. FHLBank Des Moines Home$tart, by comparison, is a $15,000 grant limited to first-time buyers.
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How much assistance
Eligibility
- Income limits: Below 80% of HUD median income, regionally adjusted (ACDC chart posted as of 6/1/2025). 4-person limits: Fairbanks-College $91,900, Juneau $102,950, Mat-Su Borough $90,950, Kenai Peninsula $89,300, Ketchikan $95,450, Kodiak $90,500, Sitka $97,600. 1-person: Fairbanks-College $64,350, Juneau $72,100.
- First-time buyer required: No
- Geographic restrictions: Statewide except the Municipality of Anchorage. AHFC lists coverage including Fairbanks North Star Borough, Southeast Fairbanks Census Area, Mat-Su Borough, Kenai Peninsula, Copper River Basin (Glennallen, Valdez, Cordova), Juneau, Haines, Ketchikan, Petersburg, Wrangell, Sitka and Kodiak. Homes must meet property standards and be of non-luxury nature; pre-1978 homes need a lead-based paint assessment. Buyers cannot be behind on child support.
- Homebuyer education required: Yes
How to Apply for Home Opportunity Program (HOP)
Step 1: Confirm your borough and income
HOP serves Alaska outside the Municipality of Anchorage. AHFC lists ACDC's coverage as the Fairbanks North Star Borough, Southeast Fairbanks Census Area, Mat-Su Borough, Kenai Peninsula, the Copper River Basin including Glennallen, Valdez and Cordova, plus Juneau, Haines, Ketchikan, Petersburg, Wrangell, Sitka and Kodiak. Compare your household income with ACDC's 80% chart at alaskacdc.org/home-opportunity-program.html, where a four-person Kodiak Island household is capped at $90,500.
Step 2: Call ACDC before you shop
HOP money is very limited and awarded first come, first served, so ask whether funds are available before you count on them. Lori Tice handles HOP at 907-746-5680, extension 2, and AHFC also lists ACDC's toll-free line, 800-478-8080. Pick up the current application, dated June 1, 2026, from the ACDC office in Palmer or from a participating lender, and return it with your income documents.
Step 3: Complete HUD-approved homebuyer education
ACDC requires a homebuyer education class from a HUD-approved housing counseling agency before HOP is processed, so keep the certificate for your file. Use the class to test the 25% payment rule: ACDC expects your first mortgage payment to equal at least a quarter of gross qualifying income, so a buyer earning $72,000 a year should expect a payment of about $1,500 a month or more.
Step 4: Get pre-qualified with a participating lender
HOP works only with lenders on ACDC's list. It includes Denali Federal Credit Union, Denali State Bank, First National Bank Alaska, Global Federal Credit Union, Spirit of Alaska Federal Credit Union, True North Federal Credit Union, Kodiak Housing Authority, NeighborWorks Alaska and USDA Rural Development. ACDC expects buyers to use AHFC or another secondary market lender, and the lender alone decides your first mortgage amount.
Step 5: Choose a home that meets HOP standards
The home must meet HOP's property standards, be of non-luxury nature, and become your only home and primary residence. Homes built before 1978 need a visual lead-based paint assessment and possibly stabilization work before closing, so budget time for that step on older Fairbanks and Juneau housing. ACDC publishes no price cap, so your lender's approval and the income chart set the realistic price range.
Step 6: Let ACDC size and close the loan
After the lender approves the first mortgage, ACDC processes the HOP assistance. It sizes the loan to the gap: at least $1,250, up to $3,000 for closing costs, down payment only if the lender requires one, and a first-mortgage buy-down only when other financing falls short, all within $30,000. You sign a note and deed of trust at closing, and forgiveness of the first $10,000 runs over five years.
Real Cost Example
Take a $268,400 home in Fairbanks, the city's median price. If the lender requires a 3.5% down payment, that is $9,394, and HOP can cover it because ACDC funds a down payment only when the first mortgage calls for one. Add the $3,000 closing cost maximum and the HOP loan is $12,394 at 0% interest. After five years in the home the first $10,000 is forgiven, leaving $2,394 due at sale or refinance.
Estimated closing costs in Fairbanks run $5,500 to $8,000. With $3,000 from HOP, the buyer still needs $2,500 to $5,000 at closing before any seller credit or gift. The payment test applies too: a buyer with $66,000 of qualifying income needs a first mortgage payment of at least $1,375 a month, and ACDC checks that before sizing HOP.
A first-time buyer could also ask about FHLBank Des Moines Home$tart, a $15,000 grant through member lenders that its 2026 rules allow to layer with other down payment products. HOP's $12,394 plus Home$tart's $15,000 would total $27,394, though ACDC may shrink HOP to the remaining gap and Home$tart's October 2026 release is fully reserved.
Combining With Other Programs
HOP was built to sit behind an AHFC or other secondary market first mortgage, and ACDC's lender list includes USDA Rural Development, so a USDA loan is one possible base. The named pairing is FHLBank Des Moines Home$tart, a $15,000 grant for first-time buyers at or below 80% of area median income, whose 2026 overview lets it layer with other down payment products in any recording position. Native buyers can look at FHLBank Des Moines' $25,000 NAHI grant instead.
Home$tart and NAHI cannot both be used, because FHLBank Des Moines bars layering its own down payment programs, so a HOP buyer picks one of the two. HOP also cannot replace part of a first mortgage you already qualify for, and every combination needs ACDC's sign-off along with the first lender's. The HOP contact is Lori Tice at 907-746-5680, extension 2.
Other ways to cut cash at closing include a seller credit toward closing costs and gift funds where the first mortgage allows them. Because HOP's closing cost share stops at $3,000, a seller credit often does the most work on Fairbanks or Kenai Peninsula closing bills of $5,500 or more. On a pre-1978 home, get the lead paint assessment quote early.
Pros and Cons
HOP's biggest strength is the size of the help: up to $30,000 at 0% interest with no monthly payment, twice the $15,000 Home$tart grant. The first $10,000 is forgiven after five years, so a buyer who needs $12,394, as in the Fairbanks example, repays only $2,394 at sale or refinance. There is no first-time buyer rule, no published credit minimum or price cap, and ACDC's coverage runs from Ketchikan and Sitka to the Kenai Peninsula, Mat-Su and Fairbanks.
The biggest limitation is money: ACDC says HOP funding is very limited and first come, first served, so a qualified buyer can still be turned away, and Anchorage buyers cannot use it. Income must be below 80% of the regional median, about $91,900 for four people in Fairbanks, while the 25% payment test screens out buyers whose payment is already low. Closing cost help stops at $3,000, and anything above $10,000 is repaid at sale. Alternatives are Home$tart's $15,000 grant and NAHI's $25,000 grant for Native buyers.
Frequently Asked Questions
Can I use the Home Opportunity Program in Anchorage?+−
How much is the HOP loan and is it forgivable?+−
What are the HOP income limits in Alaska?+−
Do I have to be a first-time homebuyer for HOP?+−
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Sources
Last verified November 2, 2026.
- Alaska Community Development Corporation: Home Opportunity Program
- Alaska Community Development Corporation: HOP 80% income limits (PDF)
- Alaska Housing Finance Corporation: Home Opportunity Program
- FHLBank Des Moines: Home$tart
- FHLBank Des Moines: Down Payment Products 2026 Program Overview (PDF)
- FHLBank Des Moines: 2026 AHP Implementation Plan (PDF)