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 5% fixed interest rate over a 30 year term with an Annual Percentage Rate (APR) of 5.089%. 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. When combined with a first mortgage product, a DPA loan can provide the benefit of avoiding monthly mortgage insurance, which lowers the borrower's overall housing payment. This benefit helps our families save money and have increased buying power.