Need Help With A Down Payment?
What Is The Down Payment Assistance Loan?
The Down Payment Assistance (DPA) product provides assistance for home buyers who are purchasing a single family home in the Anchorage Borough, Kenai Peninsula Borough or the Matanuska-Susitna Borough. Applicants using this product will be expected to occupy the home as their primary residence.
Loan amounts for the DPA vary and may not exceed 20% of the purchase price with a maximum of $60,000. This loan is considered a second mortgage so applicants will also need to meet first mortgage loan-to-value (LTV) requirements from their primary lender. The DPA Loan currently offered has a 4% fixed interest rate over a 30 year term with an Annual Percentage Rate (APR) of 4.083%. Interest rates are subject to change.
The DPA is designed to increase home ownership and affordable housing opportunities primarily for eligible applicants in the Cook Inlet Region area. A benefit of this loan product combined with a first mortgage loan is the potential to avoid monthly mortgage insurance which lowers the borrower’s overall housing payment. This benefit helps our families save money and have increased buying power.