Cook Inlet Down Payment Assistance Program

Cook Inlet Down Payment Assistance 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. This allows them to avoid monthly mortgage insurance, lowering their overall housing payment.

Available Assistance
The program provides eligible applicants in the Cook Inlet Region area up to 20 percent of the purchase price, with a maximum of $60,000, in the form of a second mortgage. This is a 30-year loan offered with a 4 percent fixed interest rate (APR of 4.083 percent). *Interest rates are subject to change.

Eligibility Requirements
In order to be eligible for the Cook Inlet Down Payment Assistance Program, all borrowers must meet certain requirements. Applicants must have an annual household at or below 120 percent of the area median income (limits shown below). They must also have a credit score of at least 640, a first mortgage debt-to-income ratio no higher than 30 percent, and a total debt-to-income ratio not exceeding 40 percent. All borrowers are required to show evidence of two months of “reserves” after closing, calculated by multiplying two months of principal, interest, taxes and insurance (PITI) for the housing payment. This reserve amount may come in the form of checking, savings, and investment or retirement accounts. Any applicants who have had a foreclosure or bankruptcy in the past six years are not eligible for the program.

Property Guidelines
Properties bought with the DPA program funds must serve as the applicant’s primary residence. The program covers single family homes purchased in the Anchorage Borough, Kenai Peninsula Borough or the Matanuska-Susitna Borough.

Income Limits
Household income is defined as all income received by household members (18 years or older) who will be living in the home, even if they are not on the mortgage.

1 person household: $71,400
2 person household: $81,600
3 person household: $91,800
4 person household: $102,000
5 person household: $110,175
6 person household: $118,350
7 person household: $126,525
8 person household: $134,700

(Note: These figures were accurate at the time of publication and may no longer be current - visit the program website for updated information.)