Make Homeownership a Reality
Down Payment
Assistance Loan
What is a Down Payment Assistance Loan
The Down Payment Assistance (DPA) loan product provides assistance for home buyers who are purchasing a single-family home (including condominiums, PUDs, and other single-unit properties approved by the primary mortgage lender) 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 $75,000. 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 5.172%. Interest rates are subject to change.
The DPA loan is designed to increase homeownership 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.
The DPA
Loan Process
Contact CILC’s primary mortgage loan specialists to prequalify or bring your prequalification letter from any local mortgage company with you.
Apply for the CILC Down Payment Assistance loan and receive your income-eligibility letter after providing the necessary documents.
Schedule and obtain a Certificate of Completion for the AHFC HomeChoice or other approved homeowner education program.
Shop for a home, execute a purchase contract, and contact CILC to complete the DPA loan process.
Pre-qualification for a primary mortgage with CILC or other eligible mortgage lender.
Household income must be at or below 120% Area Median income (AMI).
Evidence of two (2) months reserves - includes the total payments for the primary mortgage and DPA loan.
No bankruptcy or foreclosure in the past six (6) years.
*NOTE - Additional underwriting requirements will be reviewed prior to approval and closing, including, but not limited to, a minimum credit score of 620 and a completed inspection of the subject property with all health and safety concerns addressed.
Eligibility
Income Limits
By Household Size as of 4/1/2024 - please contact us for current income limits
1 Person - $93,975
2 Person - $107,400
3 Person - $120,825
4 Person - $134,175
5 Person - $144,975
6 Person - $155,700
7 Person - $166,425
8 Person - $177,150
Alaska
1 Person - $101,775
2 Person - $116,325
3 Person - $130,875
4 Person - $145,350
5 Person - $157,050
6 Person - $168,675
7 Person - $180,300
8 Person - $191,925
