First-time home buyer programs in Alaska and Anchorage

Who counts as a first-time buyer?

AHFC defines a first-time homebuyer as someone who has not owned a primary residence in the last three years. Exceptions exist for homes in “targeted areas” (certain HUD-designated census tracts) and for qualified veterans.

The two AHFC first-time loans

Source: AHFC, “First-Time Homebuyer Loans” and “Current Rates”. Rates are posted every business day and are for lenders. Your lender gives you the rate and the APR that apply to your loan.

Eligible properties for both are single-family homes, condominiums, Common Interest Community units, duplexes and Type I manufactured homes. AHFC also lists “My Home” for borrowers and properties that do not meet other programs’ rules; its 30-year rate was 7.375% on the same day.

Limits for the Anchorage area

For First Home Limited, AHFC sets limits by area. These were effective June 1, 2026.

Source: AHFC, First Home Limited (TEP) income and acquisition cost limits. The targeted Anchorage tracts are 5.00, 6.01, 6.02, 9.01 and 11.00.

AHFC says income is the borrower’s gross monthly income multiplied by 12. To find out whether an address is in a targeted tract, AHFC points to the Census Bureau’s geocoder. A buyer who takes a First Home Limited loan may owe a federal “recapture” tax when selling the home; AHFC recommends asking a tax professional.

Options you can add to the loan

AHFC lets borrowers combine several “loan options” with a single-family loan. Ask your lender which apply.

Source: AHFC, “Loan Options” and the pages for each option.

The 97% option in numbers

AHFC explains that the 97% option trades a smaller down payment for a higher payment. Here is our own example, on a $400,000 home with the October 13, 2026 First Home Limited rate (principal and interest only, no taxes or insurance):

• 5% down: $380,000 loan at 6.750% gives about $2,465 a month.
• 3% down: $388,000 loan at 7.000% (6.750% plus 0.25) gives about $2,581 a month.

You save $8,000 at closing and pay about $117 more each month. AHFC’s own illustration for a $400,000 home shows $8,000 saved and a monthly increase of $113. Both are examples, not offers.

Low-income and veterans limits in Anchorage

AHFC’s June 1, 2026 limits for the Anchorage metro area:

Source: AHFC IRRLIB and State Veterans Preference income limits.

Education and other help

• HomeChoice class. AHFC’s online homebuyer course takes about two hours. The certificate of completion is good for up to a $250 credit on any single-family loan product. The low-income reduction and Affordable Housing Enhanced options require an approved homebuyer class.
• Veterans program. A separate Veterans Mortgage program serves qualified veterans who apply within 25 years of discharge from active duty, with the same 1-point cut on the first $50,000 as the State Veterans option. The two cannot be combined.
• New Home Construction Rebate. Alaska Housing Energy, an AHFC site, advertises a state-funded $10,000 rebate for newly constructed homes that meet a 5-Star Plus or higher energy standard, paid after construction and limited to available funds. The page refers to buyers in 2025, so confirm that it is still open before you count on it.

What the City of Anchorage offers

The Municipality of Anchorage’s draft 2026 Action Plan (April 28, 2026) lists $616,173 in federal HOME funds. It says they will fund a housing program with a nonprofit developer (Habitat for Humanity Anchorage) and property acquisition for affordable housing. The plan describes down payment assistance for first-time buyers as part of the nonprofit’s work. The plan does not describe a city-run program for individual buyers. Contact the Municipality’s Housing and Community Development office for current terms.

How to apply

1. Choose an AHFC-approved lender from AHFC’s list; AHFC does not offer direct lending on single-family programs.
2. Ask the lender which of the options above fit your income and the home.
3. Take the HomeChoice class if you want the credit or if an option requires a class.
4. Check the home price against our page on Alaska home prices and the limits above.

Down payment rules for other loans are in our guides to FHA loans and VA loans. For the costs of the purchase, see closing costs in Alaska. Local context is on buying a home in Anchorage.