THRHA Down Payment Assistance Program
Financial Assistance for Homebuyers in Alaska
Available Assistance
The THRHA Down Payment Assistance Program provides up to $20,000 in assistance funds to income-eligible applicants in the form of a 5 percent fixed rate second mortgage. This is a 10-year loan, where payment is deferred for the first five years. During this initial period, 10 percent of the loan will be forgiven each year, as long as the property remains owner-occupied. Any remaining balance will be amortized over the remaining term of the loan. The THRHA loan comes with a 1.5 percent loan origination fee and a $50 processing fee. The loan amount must be repaid if the home is sold prior to maturity.
Eligibility Requirements
To be considered eligible for the THRHA Down Payment Assistance Program, all borrowers must meet certain requirements. Only Alaska Natives or Native American tribal members can receive assistance under the program. They must be first-time homebuyers, and their annual household income does not exceed 80 percent of the area median income. Applicants must complete a first-time homebuyer education class, and prove that qualification for bank loan is contingent on THRHA assistance.
Property Guidelines
Any property being purchased with THRHA funds must serve as the borrower’s primary residence, be located in Southeast Alaska, and not exceed the program’s maximum purchase price of $300,000. Mobile homes are not permitted under the program.
*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but state and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.
Down payment assistance programs and/or grants were researched by the team at FHA.com. Please note that all programs listed on this website may involve a second mortgage with payments that are forgiven, deferred, or subsidized in some manner until resale of the mortgaged property.
FHA.com's compilation is not a complete list, but it can serve as a starting point in your search for the down payment assistance program or grant for your situation. It is up to the consumer to contact these entities and find out the specifics of each program.
Down Payment Grants in Alaska
Affordable Housing Enhanced Loan Program
The Alaska Housing Finance Corporation offers down payment assistance or secondary financing options, with their Affordable Housing Enhanced Loan Program (AHELP). The program works together with governmental agencies, nonprofit agencies, and regional housing authorities.
Cook Inlet Down Payment Assistance Program
Cook Inlet Down Payment Assistance (DPA) Program was designed to help individuals afford the hefty down payments that are associated with the mortgage transaction. The program saves homebuyers money when combined with a first mortgage.
Home Opportunity Program
The Home Opportunity Program provides assistance funds in the form of a zero-interest loan, with the first $10,000 conditionally forgivable over a five-year period. These funds must be repaid if the homebuyer does not continue to own and occupy the purchased property for the required period.
THRHA Down Payment Assistance Program
Alaska's Tlingit Haida Regional Housing Authority (THRHA) provides homebuyers with the Down Payment Assistance Program. Funds from this program can be put toward the down payment and/or closing costs (excluding prepaid closing expenses) associated with the mortgage transaction.
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